Changes In Labour Law

• Law Firm: Eurofast
• Subject Matter: Employment and HR, Employee Benefits & Compensation
• Author: Ms Drilona Likaj
• Published date: 19 April 2023

Another change in the minimum wage which will be applied to all employed and self-employed citizens within the country, was recently decided in Albania. The new minimum salary, starting from April 2023, will be 40,000 ALL.

This increase of 17% compared to the current minimum wage of 34,000 ALL, is the highest ever applied in the country. From the employees' point of view, this change means increased welfare, especially for workers in factories and manufacturing industries who are paid low wages. On the other hand, increasing the minimum wage to such levels brings increased costs for entities. As a result, the government has decided to subsidize the costs that come from minimum wage change for entities that have a high number of employees.

What should be emphasised is that in Albania, besides the services sector and factories, a large part of the labour market is occupied by offshore manufacturers, which have taken advantage of the low labor cost, and...