Minimum wage 500 euros, cost for exporters - Prençe: Compensatory measure for the sector, negative impact on competitiveness
The government's increase in the minimum wage to 500 euros from January 1, 2026, is welcomed as an initiative by businesses in Albania, but on the other hand it is seen as a move that will significantly increase costs. Representatives of the export sector assess it as a necessary step to improve the well-being of employees, but warn that this initiative will negatively affect their competitiveness.
"It is definitely necessary and imperative to increase the minimum wage, as we are all seeing an increase in costs and the food basket. The well-being of employees is also an important part of the economic activity of any business. This increase in the minimum wage, for a company with about 600 employees, translates into an additional cost of almost 100 thousand euros per year. The question is: who will bear these costs? The government should intervene with compensatory measures and not put Albanian businesses in even greater difficulties," says Edvin Prençe, Chairman of "ProEksport Albania".
According to Prença, one way to mitigate the immediate effect of this increase could be for the government to cover part of the social security contributions, not only for those directly affected by the minimum wage, but for all employees in exporting sectors.
"It is necessary that there be room to incentivize sectors that are already suffering from this increase in costs and this impact from the exchange rate. In just one company with 600 employees in our sectors, the increase in costs amounts to almost 100 thousand euros, just from the increase in the minimum wage. Who will bear these costs? This question should be asked by the government, to subsidize and not to put Albanian businesses in even more difficulty. An incentive could be to take over part of the social security for employees as a whole and not just for those affected by the minimum wage."
Prençe also suggests applying "fiscal shock absorbers" to balance the negative effects of the exchange rate and rising costs, emphasizing that the government has budgetary space to intervene thanks to the revenue surplus.
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