One in Four Employees with Minimum Wage
One-quarter of employees paying social security contributions earn up to Lek 50,000 per month, while the proportion of workers in higher wage brackets is rising significantly, according to official INSTAT data on wage trends for the second quarter of 2026.
This shift in wage structure is linked to the increase in the minimum wage from Lek 40,000 to Lek 50,000 at the start of the year, as well as wage hikes across various economic sectors, labor shortages, and intensified business competition to attract or retain employees.
At the end of 2025 - prior to the minimum wage hike - approximately one-third of employees earned up to Lek 50,000. Specifically, 12.8% earned the minimum wage of Lek 40,000, while 21% earned between Lek 40,001 and Lek 50,000. Combined, these two categories accounted for 33.8% of the workforce.
Within six months, the share of employees earning up to Lek 50,000 has decreased by approximately 8 percentage points. Part of this shift stemmed from the minimum wage increase.
Concurrently, the proportion of employees earning significantly higher wages has also grown, signaling a gradual shift in the wage structure toward higher levels.
Nearly half of contributing employees - 48.3% - earned over Lek 75,000 per month in the second quarter of 2026. At the end of 2025, this category accounted for 43% of the total.
Growth is also evident in the segment earning over Lek 95,000. In the second quarter, 32.1% of employees earned above this level, up from 29.4% in the fourth quarter of 2025.
There has been a notable increase in the share of employees earning over Lek 120,000. They made up 17.1% of the total in the second quarter of 2026, compared to 14.1% during the same period in 2025.
Several factors may have contributed to this rise in higher wages. Labor shortages - linked to emigration and a shrinking working-age population - have compelled businesses across many sectors to offer higher wages to attract and retain staff. Another factor is the rise in public sector wages and its impact on the private sector, particularly for professions where the state and businesses compete for the same pool of workers.
Furthermore, the rising cost of living in recent years has increased pressure from employees for higher wages, while companies facing staff shortages have been compelled to adjust pay rates more rapidly.
The employment structure is shifting, with a greater share of skilled professions and above-average-paying sectors, while low-wage activities are grappling with labor shortages.





