As in 2022, to facilitate businesses after the minimum wage increase, the government plans to re-implement the compensation scheme to cover the additional social security and health insurance contributions for minimum wage employees.
The compensation will cover this supplement for the period January–September 2026.
Nationwide, the minimum wage increased by 10,000 lek from January 1, 2026, reaching 50,000 lek.
The implementation of the measure to provide compensation after a salary increase for a period of 9 months was initially announced by Prime Minister Edi Rama in hearings held with citizens prior to the approval of the 2026 draft budget.
"In order for employers to take time to systematize this increase, the government will pay the first 9 months of social and health insurance for those whose salary is below 500 euros. Employers will have to pay employees a minimum salary of 500 euros from January. The insurance will be covered by the government," Rama previously stated.
Sources from the implementing institutions explained to "Monitor" that applications for compensation are expected to begin in March. The beneficiary categories, but also the amount of compensation, are expected to be determined by a Decision of the Council of Ministers. Also, this year, the General Directorate of the National Employment and Training Agency (AKPA) will be responsible for monitoring the application process and subsidizing business categories.
Applications for compensation will be made through the e-Albania platform. The deadline for submitting the request will be no later than the 20th of the following month.
During March, entities will be able to apply for compensation for the months of January and February. Further, the application will be made each month after the submission of the payroll for paid employees.
The application procedure is expected to be the same as that implemented in 2022, after the minimum wage was increased from 32 thousand lek to 34 thousand lek.
At that time, the government approved compensation to cover the additional social security contributions for businesses in the garment, fishing and forestry sectors. Businesses received 1,674 lek compensation for each employee through the e-Albania platform.
This year, the scope of the benefit is expected to be broader, including other private employment sectors. State institutions will be excluded from this measure.
In total, the increase in the minimum wage in the private and public sectors affected about 307.8 thousand employees. The positive effect on income was estimated at about 9 billion lek, of which about 7.6 billion lek from social contributions and about 1.4 billion lek from health contributions.
By the end of the mandate, the government expects the minimum wage nationwide to reach 700 euros. / Monitor
