Change of the new minimum monthly salary

Change of the new minimum monthly salary

Stating from 1 January 2021, the minimum monthly salary in Albania will be ALL 30,000. The new level was approved by Albanian Council of Ministers with Decision No. 1025 dated 16 December 2020 on the Minimum Salary at National Level. This decision replaces the previous one which established the minimum salary for about 2 years at ALL 26,000 per month.


The new level of the minimum salary will be taken into account as the lower threshold for the purposes of calculation of the social security contributions in Albania. The new minimum salary would be used as the starting level salary for every employee or self-employed individual for the purposes of calculating the social security contributions. 

On the other hand, in accordance with the Law no. 7703 dated 11.03.1993 on Social Security Contributions in Albania, the maximum salary is indexed in the same time and scale and time with the minimum national salary. Therefore, the increase of the minimum salary automatically increases by 15.4% the maximum amount for social security contributions which means that the new cap amount will be ALL 132,312 per month (previously ALL 114,670). 

The increase of the minimum and maximum salary affects only the calculation of the mandatory social security contributions by the employee and employer, while the rates and methods of calculation of employment income tax and mandatory health insurance remain unchanged. 

Mandatory health insurance will continue to be calculated on the monthly gross income of the employee, however cannot be calculated for a salary below the minimum threshold of ALL 30,000 per month.

Entry into force

Decision No. 1025 dated 16 December 2020 is published in the Official Gazette No. 223 dated 21 December 2020. The Decision entered into force after its publication in the Official Gazette. 

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