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Only 11 percent of employees with insurance have a salary above ALL 120,000/month

2024-04-08 11:33:15Biznes SHKRUAR NGA REDAKSIA VOX

The increase in salaries in the private and state sectors in the last two years, pushed by the pressures in the labor market, has increased the category of persons with high salaries in the total number of employees with contributions, but it remains low in relation with the total.

According to INSTAT data, in the last 3 months of 2023, employees with a gross monthly salary over ALL 120,000 made up 10.7% of the total number of employees with an increase of 3 percentage points compared to the same period of 2022.

Despite the fact that salaries have started to change in both the public and private sectors, the vast majority of employees with insurance have minimum wage.

In the last 3 months of last year, people with a gross salary of up to 40 thousand ALL made up 26.5% of the total number of employees, with a significant increase from the last 3 months of 2022 when this category occupied about 22.4% of the total number of employees.

The increase in employment categories in both the minimum and maximum wage came as a result of the government's measures to increase the minimum wage and the doubling of high wages in the central public administration.

From the first 3 months of 2022 to the third 3 months of 2023, the minimum salary increased by 10 thousand ALL or 33%, while salaries for public administration increased by over 70% for all categories from specialists to management levels.

After the minimum wage, the next largest category in the total number of employees with insurance are those who receive gross wages at the level of 60-95 thousand ALL per month, which make up 26.3% of the total.

But the salaries referred to in taxes with which insurance is paid do not represent the reality in the private sector. In many sectors, higher salaries than declared are still given and the policy of salary in the bank and that of the envelope is applied.

Our country has high informality in the labor market and in wages. In the last 3 months of 2023, the Labor Force Survey reported over 1.3 million people employed in the country, but only 55% of them are in the insurance scheme.

High informality in the labor market is turning into a long-term scourge for society, as today's workers risk being left without a pension or with wages that do not reach the country's minimum living wage.

This wound has already begun to be reflected, since more than half of the pensions in the public scheme receive partial payments./Monitor

Only 11 percent of employees with insurance have a salary above ALL

 

 


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