Decision No. 776, dated 19.12.2025, published in the Official Gazette of the Republic of Albania, amends the minimum wage nationwide, as the Council of Ministers has decided to increase the minimum wage, setting it at 50,000 ALL per month. This decision, which brings a significant increase compared to the current level of 40,000 ALL, will come into effect on January 1, 2026. This increase aims to improve the income, purchasing power, and living conditions for thousands of workers in the country.
According to the decision, the minimum monthly base salary of 50,000 ALL is mandatory for all employers, whether they are natural or legal persons, domestic or foreign, operating in Albania. The minimum wage is calculated based on 174 working hours per month, which represent the regular working hours. According to the decision, the minimum hourly wage will be 287.3 ALL per hour. The decision also specifies that any permanent allowances or supplements must be provided in addition to the minimum base salary and shall not be included within it. With the entry into force of this decision, the previous decision of the Council of Ministers from 2023, which set the minimum wage at 40,000 ALL is repealed.
The maximum salary for the purpose of calculating social security contributions is indexed simultaneously and at the same rate as the national minimum wage. Given that the minimum wage has been indexed by 25% (from ALL 40,000 to ALL 50,000), the same indexation rate must also be applied to the maximum salary. Consequently, the maximum salary for the purposes of social security contributions shall be set at ALL 220,520, reflecting an increase of 25% over the existing amount of ALL 176,416.
This measure aims to protect the living standards of employees, strengthen human capital, and improve the standard of living for thousands of Albanian families. The increase in the minimum wage will contribute to the reduction of informality in the labor market and to the strengthening of compliance with legal contracts, bringing a positive impact on the country’s economy.
