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Minimum wage increase, a forgotten promise

2025-03-10 15:25:25Biznes SHKRUAR NGA REDAKSIA VOX
Minimum wage increase, a forgotten promise
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Two years ago, Prime Minister Edi Rama promised that this spring would find Albania with a minimum wage of 45 thousand lek. But the promise was forgotten. Verifications by Faktoje.al show that the government has no plans to increase the minimum wage this year. 

Esmeralda Ball 

In April 2023, the minimum wage in Albania increased from 34,000 lek to 40,000 lek. Shortly after announcing the 17.6% increase, Prime Minister Edi Rama promised that this would not be the last. At the time, Rama said that the minimum wage would increase by 5,000 lek in the spring of 2025.  

"At the end of April 2025, the minimum wage will be 45 thousand lek..." promised Prime Minister Edi Rama on March 13, 2023. 

Fact

Currently, the minimum wage in Albania is 40,000 lek. The government has no intention of further increasing the minimum wage, neither at the end of April nor at the end of this year. 

In an official response to Faktoje.al, the Ministry of Economy says that "based on economic performance, the process of reviewing the minimum wage for the coming years will be analyzed and initiated."

"This process will be based on macroeconomic data that will emerge from the analysis of the second half of 2025, including key indicators such as inflation, productivity growth and labor market developments," MEKI emphasizes. 

According to the Ministry of Economy, the year and possible value of the minimum wage increase will depend on economic indicators, so that the increase is in line with economic development and labor market stability. 

The latest data from INSTAT shows that of the total number of employees who pay social security contributions, 24.5% of them have a minimum salary of 40 thousand lek.

Alban Zusi, who heads the Albanian Exporters Center, says that private businesses have exceeded the minimum of 45 thousand lek. 

"We have increased salaries because we are working in a stressful environment, especially exporters. What would be needed is for the government to remove the TAP on this salary. Despite the fact that we pay more minimum wage, employees receive less money because the state taxes them," says Zusi.

Last in the region and Europe 
Although the minimum wage has increased 6 times in the last decade, Albania still remains last in the region in terms of the level of this wage. 

Montenegro holds first place with 670 euros, followed by Serbia with 618 euros and North Macedonia with 540 euros. In Bosnia and Herzegovina, the minimum wage is 510 euros per month. 

Even referring to the latest data from EUROSTAT, Albania ranks last in Europe for the level of the minimum wage, especially when it comes to purchasing power standards. 

While prices in Albania are among the highest in the region, and many products cost more than in Europe, purchasing power remains low, ranking Albania last in Europe.

Minimum wage increase, a forgotten promise

According to Eurostat, at the beginning of this year the minimum wage in EU countries ranged from €551 per month in Bulgaria to €2,638 per month in Luxembourg.

cONcluSiON 

Based on the verification carried out, we will categorize Prime Minister Edi Rama's promise that by the end of April 2025 the minimum wage will be 45 thousand lekë as unfulfilled. / Faktoje.al


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