Govt’s Promised EUR 500M Minimum Wage

The May 11 vote determined that the Socialist Party will lead the country in the next four years, while the economic program presented during the electoral campaign foresees an increase in salaries and pensions, without changing the fiscal regime.

Thus, the government has not planned a change in income taxation, sticking to progressive taxation of 0-23%, while promising an increase in salaries and pensions.

The average salary in the public sector is promised to go to at least Euro 1200 by 2030, while the average salary including the private sector will be at least Euro 1,000, according to the Prime Minister Edi Rama’s promises. For doctors, the ambition for an average salary of Euro 2,000 has been presented, while for teachers Euro 1,250.

Also, the SP program foresees that starting from January 2026, the minimum salary will be Euro 500. To compensate for the increase in costs, businesses are promised the abolishment of any tax liability on the additional Euro 100 for the 18 months after the first salary.

Also, the SP's ambition is that in 2030, the average pension will be Euro 400 for all those who have paid full insurance and for all others, there will be a minimum pension that is intended to go to Euro 200. Unlike the increase in the minimum wage, the program does not foresee a specific year for the increase in pensions.

For the Socialist Party, until 2029, Albania will continue to have zero taxes for small businesses. The 15% tax regime for large businesses will also remain unchanged, but for the fourth mandate, an initiative to pardon the fines is promised, according to which for a 3-year period, for any additional profit that the business will declare above the economic growth rate, only 5% will be taxed.

In support of business, the mobilization of Euro 2 billion in loans and guarantees through the Bank of Albania and the Development Bank is also promised to increase domestic production.