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...
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...
Inflation in Albania entered a new phase of pressure during the spring and the start of the 2026 summer season.According to INSTAT data, the annual inflation rate reached 3.0% in May 2026, rising gradually from 2.6% in March.While this level...
In a year like 2025, when Albania continued to navigate global challenges such as geopolitical tensions, the lingering effects of the pandemic, and the transition toward European integration, economic performance played a decisive role in shaping wage dynamics.This in-depth analysis...
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...
The increase of the minimum wage from 40,000 to 50,000 lek, with an additional 10,000 lek per employee per month, and the government support for 9 months through covering the difference in contributions, creates a situation where businesses face a...
In Albania, nominal income growth and positive macroeconomic indicators have not automatically translated into improvements in citizens’ everyday lives. Public policies, including increases in minimum wages, pensions, and social assistance, aim to protect the minimum living standard and reduce poverty, but...
The economy appears to advance with figures that draw attention. Services face dynamism, retail is growing, while construction is one of the few productive sectors carrying weight. Yet, when we delve deeper into citizens’ daily lives, the picture becomes concerning. The...
According to historical data, the minimum wage in Albania has had an interrupted and politicized history since the 1990s. Initially, it was set to define a minimal standard of living after the transition from a planned economy to a free...
Raising the minimum wage is a complex decision that must consider the balance between workers' welfare and businesses' capacity to bear it. If the minimum wage increases without being based on productivity or economic growth, it may cause issues such...
