Minimum Salary And Income Tax Changes

• Published date: 06 April 2022
• Subject Matter: Employment and HR, Tax, Employee Benefits & Compensation, Income Tax
• Law Firm: Eurofast
• Author: Ms Drilona Likaj

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 1^st, 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...