Financial compensation in Albania
Financial compensation for the increase in social and health insurance contributions due to the increase in the national minimum wage
Based on the Decision of the Council of Ministers no. 114, dated 01.03.2023 and the Instruction of the Minister of Finance and Economy no. 8, dated 28.03.2023
Who benefits?
- Legal or physical entities, with employees who are paid minimum wage, that exercise activity in the fields of economic activity of the processing industry, fishing, agriculture and forestry, which result in the register of taxpayers of the tax administration and whose NACE2 code begins with A and C.
What are the criteria?
- To be non-state-owned entities;
- Not to be self-employed;
- Not be in bankruptcy process;
- To have no obligations towards the tax authorities for mandatory health and social insurance, until the moment of application or at the moment of application prove that:
- have entered into relevant agreements for the repayment of these obligations and are regular in their repayment;
- have settled the obligations, but have not yet paid the fines
Compensation time period
- April-December 2023
Application procedure
- Entities submit a request for application electronically through the “e-Albania” portal, no later than the 20th of the following month, from the expected month of declaration, for the period they require compensation, otherwise they lose the compensation for that period.
- The list of subjects is generated by the General Directorate of Taxes and sent after the 20th of each month to the General Directorate of Employment of AKPA.
- Regional Employment Directorates, within 5 working days, verify the list of applying subjects with the list generated by the tax system.
- The Regional Employment Directorates inform through the account in e-Albania and email, each requesting entity about the status of the request, rejected or accepted.
- For all requests that meet the criteria, the regional employment directorates, within 10 working days, finalize the final list of beneficiary entities.
How is the compensation calculated?
The financial compensation is calculated and given based on the maximum number of employees with minimum wage, who appear in the payroll declared in the tax authorities, for the month of December 2022.
- It is given for the number of employees with a declared minimum wage in the month that requires compensation, but not more than the maximum number of employees with a declared minimum wage for the month of December 2022.
- The total amount for each compensation for each month will be based on the number of employees, at the rate of 1,674 (one thousand six hundred and seventy-four) ALL for each employee, calculated with reference to the contribution period of December 2022 as well
The right to appeal
Applicants, whose request is not approved or partially accepted, have the right to appeal to the director of the regional directorate of AKPA, within 3 working days, from the moment of publication of the final list of beneficiary entities.
- The director of the AKPA regional directorate examines and makes a decision on the appeal of the subject/subjects within 5 working days.
For further information, contact us
