informality

Fiscal package 2027, what do citizens gain, and what risks does business face?

The changes to VAT, the business registration threshold and personal income tax aim at higher revenues, formalisation and relief for certain categories. But the outcome will depend on the way they are implemented, the impact on prices and the new...

Taxation Trends in the Western Balkans 2026

How are tax systems across the Western Balkans changing, and what do these changes mean for competitiveness, employment, investment and European convergence? The new ALTAX report examines tax developments across the six Western Balkan economies – Albania, Bosnia and Herzegovina,...

Minimum wage in Albania, more income, but also a new limit for formalization

The increase in the minimum wage from ALL 40,000 to ALL 50,000 in 2026 significantly changed the relationship between wages, productivity and the cost of formalization. The ALTAX Study shows that the main challenge is not only whether the...

The model of minimum wage and informality in Albania

ALTAX Observatory publishes the new study "The Minimum Wage and Informality Model in Albania", an evidence-based analysis of the relationship between the minimum wage, labor productivity, informality, and employment during the period 2015–2025, as well as the potential effects...

Labor market in Albania 2021–2025 is profoundly transformed with a doubling of incomes and a structural shift in wages

A new analytical study on labor market developments in Albania for the period 2021–2025 highlights a profound structural transformation, which has directly impacted the growth of budget revenues, the formalization of work, and the redistribution of labor income. According to...

Albania and the energy and economic challenges from the impact of tensions in the Strait of Hormuz

Developments in the Strait of Hormuz, one of the most critical nodes of global energy supply, constitute a direct risk for small and open economies such as Albania. Although the country does not import oil directly from Iran, it is fully...

Why is performance of the tax administration measured by realization of state budget rather than by reduction of tax evasion?

This question touches on a fundamental aspect of the fiscal system, where formal priorities, administrative practices, and political interests play a decisive role. In countries like Albania, where the tax administration is part of the state mechanism for revenue collection, the...

Increase of Minimum Wage in Albania from January 2026 in light of the latest IMF study

The increase of the minimum wage is always one of the most debated interventions in economic policy. It represents a direct attempt to raise the incomes of low-wage workers, but at the same time raises deep dilemmas regarding its impact...

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