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Salaries increase in July, how has the cost changed in the budget?

2024-06-11 12:33:53Biznes SHKRUAR NGA REDAKSIA VOX

Salaries increase in July, how has the cost changed in the budget?

Within this month, the government is expected to approve the relevant decisions for the salary increase in the public sector, which includes employees with ranks, administration, local government, white shirts as well as employees in education. The final details of what the final increase will be for each category are currently being determined.

But how have the budget expenses changed in function of the salary increase? Referring to the official indicators of the Ministry of Finance for the 4-month period, January-April, it seems that there has been a progressive increase in personnel expenses.

Specifically, in the 4th month of 2020, budget expenses for personnel are calculated at 24.9 billion ALL, which includes social security contributions, while in 2024 they are recorded at 34.4 billion ALL, with an excess of 9.5 billion ALL. Likewise, if we compare the growth with last year when the salary increase reform started, the jump is 4.9 billion ALL or 49 million euros.

The full wage reform, which is ongoing from 2023, spread over two years, reaches a cost of about ALL 39 billion and benefits 130,000 employees. Meanwhile, the total expenses for salaries in the Public Administration are planned in the amount of 119.7 billion ALL for the whole year 2024, or 1.2 billion dollars, or in other words 4.9% of the GDP.

According to the data of the "Institute of Statistics", the average gross monthly salary in the state sector in the 4th quarter of 2023 has reached 87,864 ALL, registering an increase of 18% compared to 2022.

The government's intention is that within this year the average salary in the state will reach the level of 900 euros, thus serving as an incentive for the private sector.


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