The salary increase reform in the administration has exerted positive pressure on the public sector, "forcing" companies to review the salaries of their employees.

The official data of the Ministry of Finance show that during the 7 months, revenues from personal income tax were realized in the amount of Lek 38.1 billion with an increase of Lek 5.1 billion or 15.3% more than the seven months of 2023, as well as 2% more than the 2024 plan.

Referring to the financial data, the income from the salary tax from the public sector was realized with an increase of 21.4%, compared to January-July of 2023, an increase that directly reflects the salary increase undertaken in the middle of the last year, given that the decision came into effect in July.

Income from the salary tax from the private sector was realized with an increase of 14.9%, compared to the 7 months of 2023, thus contributing to the increase in income from this tax. The figure shows that despite the lower growth, there is still a positive difference compared to last year.

Referring to the normative act recently approved for various items in the 2024 budget, regardless of this positive trend, personal income tax is provided with a reduction for business income, based on the Constitutional Court's decision to repeal the law, which introduced tax scheme from January 1, 2024, professional services. For this reason, these revenues projected for the months of August-December 2024, are revised down by Lek 1.5 billion less.