Changes to the value of the minimum wage and new terms applicable to personal income tax

By the decision of the Council of Ministers No. 158 dated 12.3.2022 “On the determination of the minimum wage at the national level”, the Council of Ministers decided to amend the determination of the minimum wage at the national level. According to this decision, the mandatory minimum monthly wage for employees at the national level to be implemented by every person, legal or natural, local or foreign is 32 000 (thirty-two thousand) Lekë. In addition, the above decision establishes that, the minimum monthly wage is given for 174 (one hundred and seventy-four) hours of work per month performed during normal working hours and the minimum basic hourly wage is 183.9 (one hundred and eighty-three point nine) Lekë. This decision comes into force immediately and extends its financial effects starting from 01.04.2022. Simultaneously with the above changes, Normative Act No. 4 dated 03/12/2022 “For an amendment to Law no. 113/2021 “For an amendment to Law no. 8438 dated 12/28/1998, “On Income Tax”, as amended”, which has modified and brought forward the deadline for the entry into force of the table for personal income tax from work according to which, the tax on profit from personal income from work decreases. This Regulatory Act has brought about amendments to Article 2 of this law where the words “…starting from the date of 1 July 2022…” are replaced with “…starting from the date of 1 April 2022…” .