Ida Ismail
From January 2026, the government promises to raise the minimum wage to 500 euros, while the average wage is expected to exceed 900 euros. Increasing the average wage is one of the most repeated promises of the Albanian government over the last decade. From 2013 until today, every political mandate has included in the program an increase in wages as a guarantee for a “better life” and “Albanians with a dignified income”. But, beyond the official figures, will this increase translate into a real improvement in the lives of Albanians, at a time when the cost of living is increasing faster than wages?
Labor expert Gertjana Hasalla states that increasing the average salary can only have a positive effect if it is accompanied by other supportive policies for citizens:
"In conditions where inflation is high, the effect of wage increases must be accompanied by price controls, be they food, rent, or energy."
To better understand the effect of this increase, it is worth taking a look at the historical overview of the minimum wage: In 12 years, from 22 thousand lek to 40 thousand lek. While in 2026, 500 euros are expected.
This overview shows that the increase in the minimum wage has been gradual, but its real power has remained limited in the face of inflation and the rise in the cost of basic Services.
One of the main concerns is the impact this increase will have on small and medium-sized businesses, which make up over 90% of the Albanian economy. Hasalla points out that, unlike the minimum wage, the increase in the average wage is not a legal obligation, but market pressure will make it sensitive for employers:
"The market itself will impose a burden on businesses, as they will face a shortage of workers if they do not increase wages. For the final consumer, this translates into higher prices for goods or Services. However, if the measure is implemented with support
"With temporary fiscal stimulus and productivity incentives, it can become an opportunity for stabilizing the labor market, not a threat to it," explains Hasalla.
Experts explain that low-wage sectors, such as trade, tourism, construction and Services, will benefit most directly, while export-dependent sectors may face pressure to maintain competitiveness.
The government's wage increases are presented as a guarantee of "sustainable economic growth". But without policies to reduce the cost of living, fiscal support for businesses and price controls, any increases will remain temporary. As expert Gertjana Hasalla points out, "The positive impact will depend on the management of the cost of living by the government and businesses." /acqj.al
