Albania to raise public sector wages in 2026

Prime Minister Edi Rama announced that, in 2026, salaries will be increased for public administration staff, medical personnel, teachers, and law enforcement officers.

Addressing the parliamentary plenary session on the 2026 budget and fiscal package, Rama noted that the budget provides for a further substantial increase in remuneration, CE Report quotes ATA.

The Prime Minister explained that the increase in the minimum wage is not only a direct rise in the minimum level but also acts as a bottom-up stimulus to raise higher wages.

Rama recalled that the policy began with an income tax exemption for employees earning a minimum wage of €300, was subsequently extended to those earning €400, and will now be applied to those earning €500, accounting for around 35% of the employed population.

The minimum wage in Albania was only €157 when we took office. It has now risen to €500.

Rama added that ‘the proportion of employees earning the minimum wage in the labour market has fallen from 60% to 14%, indicating a steady shift towards higher salaries.’”

“Rama stated that, ‘We have doubled the average wage in the private sector, which is now significantly higher than before, and have raised the average public sector salary to €1,000, while the overall average wage stands at €840.’”

“For the first time, we will introduce periodic wage indexation every two years for public administration, in order to continue strengthening families and supporting the improvement of living standards,” the Prime Minister stated.

The Prime Minister further noted that, for the first time, the budget includes differentiated pay rises aimed at supporting lower-income employees and ensuring a more equitable distribution of remuneration throughout the public administration.”

“‘The total cost of these measures concerning the public administration amounts to €100 million,’ Rama stated.”