Council of Ministers Approves Decision on Compensation of Employer Contributions Following the Government Decision to Increase the National Minimum Wage

The Council of Ministers has approved the Decision “On the determination of the rules, criteria and level of compensation for employer contributions for the additional cost resulting from the increase of the minimum wage”, which is expected to enter into force following its publication in the Official Gazette.
This Decision aims to support entities affected by the Government Decision on increasing the national minimum wage to ALL 50,000 gross per month, by providing financial compensation for the employer’s social and health insurance contributions for the contributory period January – September 2026.
The financial compensation will be granted based on the maximum number of employees with a gross salary ranging from ALL 40,000 to ALL 49,999, as declared in the September 2025 payroll (according to the latest declaration made during 2025).
The compensation rate is 16.7% of the difference between the employee’s declared salary in September 2025 and the new minimum wage of ALL 50,000.
To benefit from this scheme, entities must have more than one employee registered in the payroll, not be state-owned entities or public institutions, not be registered as self-employed (with or without employees) and have no outstanding principal liabilities towards the tax authorities for social and health insurance contributions at the time of application.
Applications will be submitted electronically through the e-albania.al portal, via the entity’s account.
The application service is expected to open on April 1, 2026, and applications will be accepted until October 31, 2026.

For more information: info@legalealbania.com
Legale Albania
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