How much is deducted from salary in Albania in 2026, and what is your net pay?

In Albania, 9.5% social insurance (up to a salary of 186,416 lek), 1.7% health insurance and personal income tax (TAP, the tax on salaries) are deducted from the gross salary. TAP is zero up to 50,000 lek gross; above this threshold, 13% is charged on the part of the salary above 35,000 or 30,000 lek. The minimum wage of 50,000 lek gives 44,400 lek net.

Calculate your salary right here, or open the full salary calculator for the gross to net table and the net to gross calculation:

What is deducted from salary in Albania in 2026

The gross salary is the amount in the contract. The employee’s contributions and TAP are deducted from it; what remains is the net salary paid into the bank account. The employer also pays its own contributions, but these are added on top of the gross salary and do not affect the net.

The contribution rates come from Law no. 7703/1993 “Për sigurimet shoqërore në Republikën e Shqipërisë” (On social insurance in the Republic of Albania) and Law no. 10383/2011 “Për sigurimin e detyrueshëm të kujdesit shëndetësor në Republikën e Shqipërisë” (On compulsory health care insurance in the Republic of Albania), and did not change in 2026. The limits changed: according to the General Directorate of Taxes (DPT), from 1 January 2026 the minimum wage is 50,000 lek (up from 40,000) and the maximum wage for social insurance is 186,416 lek (up from 176,416). Above the ceiling, social insurance stops growing: the employee pays at most 17,710 lek a month and the employer 27,962 lek, however high the salary. We explain the contributions of the self-employed and the compensation for the minimum wage in social and health contributions 2026.

How TAP on salaries is calculated in 2026

Law no. 29/2023 “Për tatimin mbi të ardhurat” (On income tax) has only two rates for employment income: 13% for annual taxable income up to 2,040,000 lek (170,000 lek a month) and 23% above this amount (Article 24). Before the rate, the tax-free portion of Article 22 is applied, which depends on the annual salary: 600,000 lek for salaries up to 600,000 lek a year, 420,000 lek for salaries of 600,001-720,000 lek and 360,000 lek above this level. These provisions apply to salaries from 1 January 2025.

In monthly terms, this gives four bands. TAP is calculated on the gross salary, not on the salary after contributions:

The fixed amount of 22,100 lek is 13% of the first 170,000 lek of taxable income; the 23% rate applies only to the part of the salary above 200,000 lek gross.

Gross to net table 2026 in Albania

The figures below are calculated with the same rules as the salary calculator, for a full-time employee with a single employer:

All amounts are in lek. The total deductions are rounded once, so for the average wage the rounded columns differ from the net by 1 lek. The average gross wage in Albania was 92,150 lek in the second quarter of 2026 according to INSTAT (the Institute of Statistics); of this, the employee receives about 80% net.

Worked example: a gross salary of 100,000 lek

1. Social insurance: 9.5% of 100,000 = 9,500 lek (the salary is below the 186,416 lek ceiling).
2. Health insurance: 1.7% of 100,000 = 1,700 lek.
3. TAP: the salary falls in the 60,001-200,000 lek band, so the tax-free portion is 30,000 lek: 13% of 70,000 = 9,100 lek.
4. Net salary: 100,000 - 9,500 - 1,700 - 9,100 = 79,700 lek, that is 79.7% of the gross salary.
5. Employer cost: 100,000 + 15,000 (15% social insurance) + 1,700 (1.7% health insurance) = 116,700 lek.

Of the 116,700 lek the employer pays out, the employee receives 79,700; 37,000 lek, about 32%, goes on contributions and tax. We calculate the annual cost and the cost per hour of work in how much an employee costs in 2026.

The 50,000 lek threshold trap

The tax-free portion does not fall gradually, but in steps. When the salary goes above 50,000 lek, the tax-free portion drops from the whole salary to 35,000 lek and TAP jumps at once from 0 to about 1,950 lek. The result: a small rise above the minimum wage lowers the net salary. The same effect, on a smaller scale, happens at 60,000 lek, where the tax-free portion drops from 35,000 to 30,000 lek:

In practice: if you raise an employee from the minimum wage, the raise must go to at least 52,572 lek gross so that the net does not fall; salaries of 50,001-52,571 lek cost the employer more and give the employee less. At the 60,000 lek threshold, the limit is 60,857 lek gross.

From net to gross: what gross salary you need for a given net

When the salary is negotiated as a net amount, the employer needs to know the gross that produces it. The calculation is done backwards, within the TAP band where the salary falls:

On top of the gross come the employer’s 16.7% contributions (up to the ceiling for the social insurance part), so the full budget for a net of 80,000 lek is about 117,200 lek a month.

Payroll deadlines: the payroll list and the annual declaration

• Monthly payroll list: the monthly payroll declaration is submitted by the 20th of the following month, with the TAP and contributions calculated for each employee.
• Annual personal income declaration (DIVA): it is mandatory when the employee has had two or more employers during the year and is submitted by 31 March of the following year; this is where the tax withheld during the months is settled.
• The 1 January changes: the minimum wage and the insurance ceiling are usually revised at the start of the year; before the January payroll list, check the DPT notice for the new values.

The recommended payroll solution: devBooks and devHR

The calculator is enough for one employee. For the whole staff every month, calculating by hand easily goes wrong, especially around the 50,000 and 60,000 lek thresholds. For this we recommend the two dev.al programs, which work together.

devBooks: the payroll list inside the accounting

The devBooks human resources and payroll module keeps the employee register and calculates the payroll list with bonuses, deductions and public holidays, with the same rules as the calculator in this article. With posting schemes, the payroll list goes into the accounts by itself. It is the right solution when you want payroll and accounting in one place.

devHR: payroll together with working time and leave

devHR is the dev.al system for human resources. It produces the monthly payroll results, manages bonuses, calculates overtime and penalties and generates the staff payroll lists. The same system keeps clock-ins and clock-outs, leave and shifts, on the web and on mobile (Android and iOS). Human resources data goes from devHR to devBooks, so for businesses with a large staff or with shifts, the two together close the cycle from working time to the accounting entry.

Sources

• DPT: “Nga 1 janari 2026, rritet paga minimale dhe maksimale” (From 1 January 2026, the minimum and maximum wage rise)
• Law no. 29/2023 “Për tatimin mbi të ardhurat” (On income tax), as amended (Articles 22, 23 and 24)
• DPT: Social and health insurance contributions (legal basis and Council of Ministers Decision (VKM) no. 776/2025 on the minimum wage)
• INSTAT: Wage statistics, Q2 2026
• The devBooks gross to net salary calculator 2026
• devBooks: human resources and payroll
• devHR: the human resources and payroll management system

To see how devBooks and devHR calculate your staff’s salaries, see devBooks pricing or write to us for a demo with your own data.