On determining the minimum salary nation-wide

The General Directorate of Taxes would like to inform all taxpayers that in the meeting of the Council of Ministers on 26/12/2018, the decision on determining the minimum salary nation-wide at ALL 26,000 has been approved.

Pursuant to Article 10 of the Law No. 7730, dated 11/05/1993 “On social insurances in the Republic of Albania”, as amended, upon entry into force of the decision, the social insurances contribution shall be calculated and paid on the gross salary based on the minimum salary threshold at national level.

For the purposes of the social contributions, the maximum salary shall be simultaneously indexed at the same level that the minimum salary at national level. The minimum salary has increased with around 8.3% (from ALL 24,000 to ALL 26,000), which also means that the maximum salary will increase with around 8.3% reaching to ALL 114,670 from ALL 105,850 it was before, increasing by ALL 8,820.

For the purposes of calculating the social insurances contributions, the gross monthly salary will be as follows:

• Not less than the minimum monthly salary, equal to ALL 26,000 and up to ALL 114,670, for employed persons.
• Not less than the minimum monthly salary, equal to ALL 26,000 and as per the determination of the person himself, and up to ALL 114,670, for self-employed persons.
• Equal to the minimum monthly salary of ALL 26,000 for unpaid family workers whom the self-employed legally works and co-lives with.

The minimum salary of ALL 26,000 and above at national level also serves to calculate and pay the mandatory healthcare insurance contributions.

The contribution of social insurances shall be calculated and paid based on the gross salary at the minimum salary threshold at national level and the maximum salary shall be simultaneously indexed at the same level as the minimum salary nation-wide.