Salary Increases approved for the Albanian Public Administration, benefiting 135,000 employees

The Albanian Government has approved a significant increase in the salaries of public administration employees, as part of the second phase of a wage increase policy initiated in 2023. This policy affects around 135,000 workers, including teachers, doctors, police officers, and military personnel. The new salaries will be implemented in the second half of the year, starting from July 1st, with an estimated cost of approximately 11 billion ALL for the latter half of 2024 and a total budgetary cost of around 40 billion ALL starting from 2025. Public administration wages are also expected to be indexed to the inflation rate, with adjustments scheduled to occur every two years starting in 2026.

Why is this relevant

Increasing public sector has become a must for Albania where, under intense competition from the private sector, retaining skilled professionals in critical sectors like education, healthcare, and security, has become increasingly more difficult.

In the Armed Forces, salaries are set to increase between 7% and 22%, ensuring that even the lowest-ranking soldiers see a meaningful boost in their earnings. The education sector witnesses the most substantial hike, with salaries rising by 33%, benefiting around 30,000 employees. For the healthcare sector, the wage increase ranges from 15% to 20%, translating to an additional 20,000 ALL for general practitioners and 15,000 ALL for nurses above their existing salaries.

The justice system, including employees in the penitentiary system, also sees notable salary improvements. These increments vary by rank, ranging from 13% to 27%. Justice Minister Ulsi Manja announced that prison staff will experience a gross salary increase between 6,000 ALL and 33,000 ALL, depending on their grades.

Moreover, the Government’s decision includes provisions for the ongoing adjustment of public sector wages to align with inflation rates. Starting from 2026, there will be a biennial indexing of salaries based on the current inflation rate, ensuring that public sector wages remain competitive and reflective of the economic climate.