The average gross salary during the first three months of 2023 is 64,706 lek, 9.2% higher compared to the same period last year. However, it has decreased compared to the last three months of last year.

According to data published by INSTAT, the average salary from 66,014 lek became 64,706 lek. The decrease corresponding to the value of 1,308 lek or 2% is considered the most significant decrease since 2020, which belongs to the period of the global Covid-19 pandemic, where the average salary decreased by 2.5%.

According to economic experts, this phenomenon is closely related to the devaluation of the euro against lek, as the main foreign currency that is closely related to some sectors of Albania market. Mainly the private sector, which operates in foreign export markets, are particularly affected by this phenomenon. Private sector accounts for 75% of the country’s workforce, and it is the most affected as it is the most sensitive to exchange rate movements.

“The difficulties are especially at the level of exporters, so we have more than 100/120 thousand of them, a part also seasonally, who are employed in export activities such as fashion, but also the industry of medicinal plants, aromatics. All of these have had difficulties and a decrease of 2%, which is significant compared to the previous three months due to the difficulties of the respective private sectors in the realization of contracts with foreigners”, said the economic expert Fatos Çoçoli.

Prime Minister Edi Rama said that the average salary will reach 900 euros by 2025. But how much power does the government have to support such a promise? Experts say that the government has budget availability due to the advantage created by the drop in the euro rate as well as the high inflation rate that have enabled the collection of tax revenues, and it is stated that with a good budget administration, it will be able to afford the promised invoice corresponding to the value of 367 million euros. But there is no lack of fear of the public debt that continues to increase.

However, the prime minister, in a round of meetings with businesses and enterprises, has asked to increase wages in order to keep the labor force in the country before it is too late.