State or private, where do employees pay more? - 400 million euros were "collected" as payroll tax in 2024
Around 400 million euros have been paid by all employees in Albania as tax on the salary they receive to the state budget throughout 2024.
Official data from the General Directorate of Taxes shows that if we analyze where the highest income comes from, from employees in the state or private sector, it results that employees in the private sector have paid more.
This is also because the number of employees in the private sector is much higher than the state administration, despite the fact that the average salary in the country is approximately 15 thousand lek, more than what is offered by businesses.
Specifically, the tax paid by administration employees on salaries amounts to 156 million euros throughout 2024, while approximately 246 million euros have been paid into the budget by employees in the private sector.
Compared to a year ago, the tax paid by the public sector increased by 30 million euros or 24% and by the private sector by 34 million euros or 15.8%.
In total, the payroll tax increased by 64 million euros during 2024, and the public administration salary increase reform, which entered into force in July of last year, had a significant impact on this.
The anti-informality reform undertaken by the General Directorate of Taxation has also had a significant impact, encouraging businesses with under-declaration to declare the real salaries of their employees, causing a significant reflection on their growth and consequently being affected by the tax bracket, which, being progressive, means that the higher the salary, the higher the tax paid on it.
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