Minimum wage, how much will insurance for employees increase? The maximum also changes, high wages are negatively affected
Starting from January 1, 2026, the minimum monthly basic wage, mandatory for every employer, will be 50,000 lek (up from 40,000 lek previously). This level corresponds to 174 monthly working hours and is equal to 287.3 lek/hour. Over 300 thousand employees in the public and private sectors will directly benefit.
But what does this increase mean? For employees, the gross salary increases by 10,000 lekë (+25%). Personal income tax for this salary level is minimal, so most of the increase is reflected in the net salary.
Let's take a concrete example: In December 2025: gross salary 40,000 lek → personal contributions ~4,480 lek → net salary ~35,520 lek.
In January 2026: gross salary 50,000 lek → personal contributions ~5,600 lek → net salary ~44,400 lek. So the net increase is +8,880 lek/month.
Social security and health insurance contributions increase by 1,670 lek for each employee with a minimum wage. This increase reflects the difference of 10,000 lek in the contribution calculation base.
Specifically, for employees, the minimum insurance will be 13,950 lek per month from the 11,160 that was paid until now, which corresponds to the minimum gross salary.
For the self-employed, the total insurance will be 14,900 lek per month from 11,920 lek that was paid until now. For this category, business costs will increase significantly.
On the other hand, the increase in the minimum wage does not only affect low-income employees, as it also increases the maximum wage for contribution purposes from 176,416 lek to 198,416 lek, which has a direct negative effect on all employees with gross salaries above this threshold, as it translates into an increase in the contribution base and a decrease in the net salary for employees with a salary above 176 thousand lek per month.
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