As inflation continues to rise in Albania, many are seeing an actual drop in their income as salaries fail to keep up, according to data published by INSTAT.
The average gross salary during the second quarter of 2022 in Albania was 60,666 ALL, up 7% from the same quarter in the previous year. However, during that period, inflation was at 6.8%, meaning the real increase in wages was almost zero, with inflation effectively cancelling it out.
While INSTAT reports that inflation is 6.8%, many believe it is much higher. The increase in costs of fuel and some food items have soared as high as 40%.
Five out of ten of the profession categories recorded by INSTAT saw a negative increase in wages when indexed against inflation.
For example, the armed forces average a salary of 65,400 ALL, with a fall of 0.5% from last year. When indexed to inflation, the wage decreases by 7.3%. Middle and higher management of state administration and legislators and senior officials average 102,000 ALL a month. The salary increased by 3.4% but decreased by the same amount when indexed to inflation.
Specialists with a higher level of education saw their salaries drop by an average of 2.2%, technicians by 0.8% and sales and service workers by 0.7%.
Meanwhile, many sectors, especially construction and fashion, are suffering from a lack of employees leading to a higher increase in the workers’ salaries. Workers in the assembly and use of machinery and equipment saw the highest real wage growth at 8%, now paid an average of 45,000 ALL per month.
For unskilled workers, the actual increase was 5.8%, but they remain the least well paid in the country, with 38,600 ALL per month.
