Employee
Employer cost
Frequently asked questions
How is salary taxed in Albania in 2026?
Under Law 29/2023, monthly gross pay up to 50,000 lek is tax-free. From 50,001 to 60,000 lek the tax is 13% of the amount over 35,000; from 60,001 to 200,000 lek, 13% of the amount over 30,000; above 200,000 lek, 22,100 lek plus 23% of the amount over 200,000. Tax is charged on gross pay, before contributions are taken off.
Why does net pay drop just above 50,000 lek gross?
The tax-free amount shrinks as soon as you cross the threshold. At 50,000 lek gross you pay no tax; at 50,001 lek you pay 13% on 15,001 lek. So 50,000 lek gross gives 44,400 net and 50,001 gives 42,451. The same happens at 60,000 lek. The calculator warns you when you are in this range.
What are the social and health contributions?
Employees pay 9.5% social insurance and 1.7% health insurance. Employers pay 15% and 1.7%. Social insurance applies to pay between 50,000 and 186,416 lek; health insurance applies to all pay with no cap.
What is the minimum wage in Albania?
50,000 lek gross a month from 1 January 2026.
What if I have two jobs?
The calculator covers one employer. With two jobs your tax can change and you must file an annual income return. Ask your accountant.
Rules and legal basis
| Monthly gross (lek) | Tax |
|---|---|
| 0 – 50,000 | 0% |
| 50,001 – 60,000 | 13% of the amount over 35,000 |
| 60,001 – 200,000 | 13% of the amount over 30,000 |
| over 200,000 | 22,100 + 23% of the amount over 200,000 |
| Contribution | Employee | Employer | Base |
|---|---|---|---|
| Social | 9.5% | 15% | 50,000 – 186,416 lek |
| Health | 1.7% | 1.7% | full pay, no cap |
Law no. 29/2023 "On Income Tax". Tax is charged on gross pay. Minimum wage 50,000 lek from 1 January 2026. Not covered: two employers, the child deduction (annual return), private pension.
Sources: PwC – income tax · PwC – contributions · INSTAT – minimum wage