After promising in November 2016 that the minimum wage would be raised from 22,000 lekë (~€164) per month to 37,000 lekë (€275), an increase of 36%, Prime Minister Edi Rama and the Council of Ministers decided on May 3 to raise the minimum wage instead to 24,000 lekë (~€178), a mere 9% increase over the last 4 years. This is barely higher than the cumulative inflation rate over the same period.
The minimum wage in Albania is one of the lowest in Europe. Only former Soviet states have lower minimum wages.
In spite of advertising itself as a “left-wing” government, the increase of the minimum wage approved last week is the lowest in recent years. As can be seen from the graph below, the monthly minimum wage increase over the last decade with an average of 1,000 lekë per year. The increase approved by Prime Minister Rama is only half of that, namely 2,000 lekë over a four year period.
And as all raises and bonuses, these were approved just ahead of the elections.
Yesterday, Minister of Finance Arben Ahmetaj promised to increase minimum wage over the next four years to 30,000 lekë per month.
