Recently, the Albanian Government has decided to amend the minimum salary at national level and to advance the application of the new taxation method for the employment income. The following issue presents a summary of the most important changes published in the Official Gazette No. 40 dated 14 March 2022 and whose become effective starting from April 2022.
New level of the minimum salary
Starting from 1 April 2022, the minimum monthly salary at national level will be ALL 32,000 (from ALL 30,000 which is currently). This increase of the minimum salary indexes automatically the maximum salary for the purposes of calculation of the mandatory social security contributions whereby the new level will be ALL141,132 (from ALL132,312 which is currently) and accounted on a monthly basis.
The new level of the minimum salary is taken into account as a starting base also for the purposes of calculation of the monthly mandatory health insurance.
The rates applicable for the computation of the monthly mandatory social security [employer: 15%; employee: 9.5%] and health insurance [employer: 1,7%; employee: 1.7%] remain unchanged.
Personal Income Tax on Salaries
Starting from 1 April 2022, the progressive taxation scheme of employment income in Albania will change by introducing new level of the non-taxable salary and adding more taxable layers in the taxation scheme as presented below. The new taxation scheme of employment income was planned to be enforced in July 2022. However, the Government has taken the decision to advance its application from 1 April 2022.
For information
Alba Paparisto
Managing Director, Tax
Tel: +355 (4) 2274 524
Sonila Selmani
Senior Manager, Tax
Tel: +355 (4) 2274 524