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Employers should keep an eye on the employment-related changes made in Albania for the upcoming year, specifically for the term of 2026. The new structure significantly raises national gross minimum wage to ALL 50,000 per month and provides a more defined statutory right to 22 working days of paid annual leave.
The changes have a significant impact on companies employing locally, foreign workers, international assignments and on payroll operations. There is a need to revise contracts, HR systems, calculating contributions and leave policy to ensure compliance by the employer.
ALL 50,000 Minimum Wage
The minimum gross monthly wage increased to ALL 50,000 from January 1, 2026, as per the Council of Ministers Decision No. 776. The amount is universal across sectors of the economy and applies to all employers—those eligible or otherwise to help ensure that employers meet the statutory baseline requirement that is true for all eligible FTEs.
The minimum wage holds for foreign nationals who are working in Albania on the basis of a Unique Permit. This entails that the salary offered in employment contracts and permits are adequate and comply with local minimums for international workers or nationals.
Social Contributions and Payroll
Statutory social and health contributions are required and need to be calculated as required by the statute. The Calculation Minimum for the framework is ALL 50,000 and it has a Calculation Maximum of ALL 186,416 per month.
It’s also a good idea for the employer to check the calculations of payroll taxes. The increment of income that falls within the amount stated as the upper limit of the threshold of personal income tax (0%) is the income earned by the employee earning the statutory minimum salary.
22 Working Days of Paid Annual Leave
A second major adjustment is with regard to annual vacation. The existing four calendar weeks referenced in Article 132(1) of the Labour Code has been clarified to a minimum of 22 working days of paid annual leave per year, as part of the changes to the Labour Code for Albania.
This enables employees more flexibility in the way that their entitlement can be used. It is not always necessary to be off for an entire week; employers may allow time off on an individual day or shorter, depending on operational needs.
Leave and Scheduling
For those who have worked less than a year, annual leave is built up proportionally. This is very important with fixed term contracts, newly recruited staff members or overseas assignment contracts.
Employers should ensure annual leave is taken within the working year or, if allowed, the first quarter of the year following in keeping with the applicable working year. Accordingly, HR systems should be designed to work with the 22 working day entitlement.
Working Hours and Overtime
The regular number of working hours in the Republic of Albania is still 40 hours a week, typically allocated in an 8+5 ratio. Overtime is also a requirement that must be monitored by the employer and must be kept within the legal limits and with increased compensation demands.
Furthermore, there is a standard overtime rate which is typically 125% of the base rate per hour, and a rest day with a public holiday rate of 150%.
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What Employers Should Do?
Employers should perform an employment-contract audit, payroll audit, social-security audit and leave audit right away. Evidence relating to foreign workers should also be reviewed for evidence of wages declared via acceptable administrative routes that meet the new minimum.
Enacting HR policies today can lessen payroll mistakes, issue conflicts and conformance dangers, and provide a uniform blueprint for the way to take care of Albania-based workers.
FAQs
What is the lowest possible amount of money that Albania can afford to pay in 2026?
From January 1, 2026, Albania’s national gross minimum wage will be ALL 50,000 per month.
How many days of annual leaves employees are entitled?
Staff get at least 22 working days’ pay annual leave a year.
Will the minimum wage be enforced on foreign workers?
Yes. Similarly, the minimum wage requirement(s) apply to foreign employees holding a Unique Permit.
