The performance of salaries in Albania showed that, even in 2025, the public sector remained the most competitive employer.

According to official INSTAT data, the average salary in the country crossed the threshold of Lek 100 thousand, settling at Lek 100,280.

This increase has caused the difference with the private sector to deepen again, reaching over Lek 23 thousand, as the average salary in private businesses, although increasing, remains at the level of Lek 77,155, with the state officially paying 30% more than the private sector, although the latter still has informality and the real salary may be higher.

This trend shows that, despite the efforts of private enterprise to increase their offers, the pace dictated by government reforms has been much faster and more aggressive for the last three years.

Last year, wages in the public sector increased by 8.9%, down from the pace of 16% in 2024. Meanwhile, the average gross monthly wage in the private sector reached Lek 77,155 thousand with an annual increase of 8.4%.

The wage gap between the private and public sectors, after narrowing significantly in 2022, with wages in the state being 20% ??higher, as a result of the rapid reaction of businesses after the inflation crisis, began to widen again at high rates in the following years.

In 2025, the difference has reached 30%, a figure that shows that the private sector is increasingly far from the standard of payments offered by the state. This situation creates a double pressure on business, which in addition to the lack of labor force due to emigration, now also has to compete with the high level of high salaries in the public administration.

As a result of a government plan to increase the average salary to Euro 900 by 2024, the public sector has become the leader in salaries. Experts predict that this shift could direct talent towards state structures.

The performance of salaries in the state sector shows a progressive increase that has started since 2020, when this value fluctuated at around Lek 64,389, as a result of the government's plan for salaries in the administration.

However, we see the biggest boost after 2022, where within just one year the salary increased by about Lek 11 thousand, reaching Lek 81,887 in 2023. This dynamic has continued during 2024, while for 2025, the increase was about 8.9%, or a net addition of Lek 8,211 compared to 2024.

On the other hand, salaries in the private sector at the level of Lek 48,459 have undergone a significant increase and are expected to reach Lek 77,155 in 2025. For this group, the annual increase was 8.4%, indicating that the entire salary structure in the country is shifting upwards.

This wage expansion, although positive for consumption, remains a challenge for businesses that must cope with higher labor costs at a time when productivity growth often does not follow the same pace.