Minimum Wage and Income Tax Changes – Income Tax
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Through a final update of Decision No. 158″On the determination of the national minimum wage“, on 12.03.2022, from the Council of Ministers, it was decided to increase the minimum monthly wage to ALL 32,000. The current minimum wage is ALL 30,000.
The new minimum wage will come into force on April 1st, 2022. Following the increase in the minimum wage, the Council of Ministers also updated the income tax rates. Under the Normative Act no. 4 of 12.03.2022, the applicable tax rates will be as follows:
- Salaries up to ALL 40,000 will not be subject to income tax.
- For salaries between ALL 40,001 and ALL 50,000, the income tax rate will be 6.5% for the amount above ALL 30,000.
- For salaries above ALL 50,000, the income tax rate will be 13% for the amount above ALL 30,000 up to ALL 200,000.
- For salaries above ALL 200,000, the applicable tax rate will be 23% for the amount above ALL 200,000 and ALL 22,100.
Changes to the minimum wage and income tax rates were due to come into force in July, but due to the current economic and social situation in Albania, these measures will come into effect on April 1.st.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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