Through an ultimate update of the decision no.158 “On Determining the National Minimum Wage”, on 12.03.2022, of the Council of Ministers, it was decided to increase the minimum monthly salary to ALL 32 000. The current minimum salary is ALL 30,000.
The new minimum salary shall be effective as of April 1st, 2022. Following the increase of the minimum salary, the Council of Ministers also updated the income tax rates. Under the Normative Act no. 4, dated 12.03.2022, the applicable income tax rates will be as follows:
- Salaries up to ALL 40,000 will not be taxable for income tax.
- For salaries between ALL 40,001 and ALL 50,000 the income tax rate shall be 6.5% for the amount over ALL 30,000.
- For salaries over ALL 50,000 the income tax rate will be 13% for the amount over ALL 30,000 up to 200,000 ALL.
- For salaries over ALL 200,000 the applicable income tax rate will be 23% for the amount over ALL 200,000 and ALL 22,100.
Changes in the minimum wage and income tax rates were planned to take effect in July but due to the current economic and social situation in Albania, these measures will enter into force on April 1st.
For additional information or assistance by our local advisors please contact our Country Executive, Ms. Drilona Likaj, at our Eurofast office in Albania at email@example.com
Eurofast is a regional business advisory organization employing local advisors in over 24 cities in South East Europe & the Middle East (SEEME). The Organization is uniquely positioned as a one-stop-shop for investors and companies looking for professional services in Tax & Transfer Pricing – Payroll & Employment – Accounting & Audit – Advisory & Corporate.