The minimum wage in Albania has seen a significant increase, outpacing the average wage in the private sector, thereby narrowing the wage gap between an average salary and the minimum wage in 2023.

According to data from the Institute of Statistics (INSTAT), in the second quarter of 2023, the minimum wage in the private sector was 60.6% of the average wage, up from 55.8% in the second quarter of 2022.

This increase in the minimum wage was achieved through a series of government decisions, resulting in a 25% increase over the course of a year. In April 2023, the minimum wage reached 40,000 Albanian lek, up from 32,000 Albanian lek in the first quarter of 2022.

During the same period in 2023, the average wage in the private sector rose to 65,901 Albanian lek, marking a 15% increase from 57,613 Albanian lek in the second quarter of 2022.

The Albanian Government’s intention in implementing these record-breaking increases in the minimum wage was to stimulate higher wages across the board.

However, despite the impressive wage growth in Albania, the country continues to have the lowest minimum wage in Europe when adjusted for purchasing power, according to the latest Eurostat data as of July 20, which does not include data for Kosovo.

In July 2023, Albania’s minimum wage stood at 375 euros. In comparison, Montenegro boasts the highest minimum wage in the region at 532 euros, followed by Serbia at 460 euros. North Macedonia’s most recent data dates back to the second quarter of 2021 when the minimum wage was around 360 euros. Bosnia and Herzegovina do not report a minimum wage.

The average gross wage in the Western Balkan countries ranged between 800-900 euros per month in 2022, significantly higher than the average in Albania, which hovers around 520 euros, marking an approximately 40% difference.