[Albania] Minimum monthly salary increase and income tax changes

In Albania on March 12, through an ultimate update of decision No.158 "On Determining the National Minimum Wage" of the Council of Ministers, it was decided to increase the minimum monthly salary to ALL 32,000, Mondaq reports.

Albania’s minimum monthly salary was ALL 30,000. The new minimum salary became effective on April 1. Following the increase of the minimum salary, the Council of Ministers also updated the income tax rates. 

Under the Normative Act No.4, dated March 12, 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 per cent for any amount over ALL 30,000.
• For salaries over ALL 50,000, the income tax rate will be 13 per cent for any amount over ALL 30,000 up to 200,000 ALL.
• For salaries over ALL 200,000, the applicable income tax rate will be 23 per cent for any amount over ALL 200,000 and ALL 22,100.

Changes in the monthly minimum wage and income tax rates were reportedly planned to take effect in July but as a result of the current economic and social situation in Albania, these measures came into force on April 1 instead.

In Albania on March 12, through an ultimate update of decision No.158 "On Determining the National Minimum Wage" of the Council of Ministers, it was decided to increase the minimum monthly salary to ALL 32,000, Mondaq reports.

Albania’s minimum monthly salary was ALL 30,000. The new minimum salary became effective on April 1. Following the increase of the minimum salary, the Council of Ministers also updated the income tax rates. 

Under the Normative Act No.4, dated March 12, 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 per cent for any amount over ALL 30,000.
• For salaries over ALL 50,000, the income tax rate will be 13 per cent for any amount over ALL 30,000 up to 200,000 ALL.
• For salaries over ALL 200,000, the applicable income tax rate will be 23 per cent for any amount over ALL 200,000 and ALL 22,100.

Changes in the monthly minimum wage and income tax rates were reportedly planned to take effect in July but as a result of the current economic and social situation in Albania, these measures came into force on April 1 instead.