In 2026 in Albania, the contributions for an employee are 27.9% of the gross salary. The employee pays 9.5% social insurance and 1.7% health insurance, the employer 15% and 1.7%. The minimum base is the minimum wage of 50,000 lek, while social insurance has a ceiling of 186,416 lek. A self-employed person pays at least 14,900 lek a month.
We checked the figures on the pages of the Social Insurance Institute (ISSH), in the notices of the General Directorate of Taxes (DPT) and in the Council of Ministers decision of 6 March 2026. The deadline to apply for the contribution compensation for the minimum wage ended on 31 October 2026.
The 2026 contributions table: employee and employer
| Contribution | Employee | Employer | Total | Monthly base |
|---|---|---|---|---|
| Social insurance | 9.5% | 15% | 24.5% | gross salary, from 50,000 to 186,416 ALL |
| Health insurance | 1.7% | 1.7% | 3.4% | the whole gross salary, at least 50,000 ALL, no ceiling |
| Total | 11.2% | 16.7% | 27.9% |
The rates did not change in 2026. Social insurance comes from Law no. 7703/1993 “Për sigurimet shoqërore në Republikën e Shqipërisë” (On social insurance in the Republic of Albania), while the 3.4% health insurance comes from Article 8 of Law no. 10383/2011, which splits it in half between the employee and the employer. The limits changed: from 1 January 2026, the minimum wage is 50,000 lek (up from 40,000, Council of Ministers Decision (VKM) no. 776/2025) and the social insurance ceiling is 186,416 lek (up from 176,416).
In lek, the monthly contributions for some gross salaries are:
| Gross salary | Employee: social + health | Employer: social + health | Total |
|---|---|---|---|
| 50,000 (minimum wage) | 4,750 + 850 = 5,600 | 7,500 + 850 = 8,350 | 13,950 |
| 100,000 | 9,500 + 1,700 = 11,200 | 15,000 + 1,700 = 16,700 | 27,900 |
| 186,416 (ceiling) | 17,710 + 3,169 = 20,879 | 27,962 + 3,169 = 31,131 | 52,010 |
| 250,000 | 17,710 + 4,250 = 21,960 | 27,962 + 4,250 = 32,212 | 54,172 |
Example: contributions on a gross salary of 250,000 lek
- Social insurance is calculated only up to the ceiling: 9.5% of 186,416 lek is 17,710 lek for the employee and 15% is 27,962 lek for the employer.
- Health insurance is calculated on the whole salary: 1.7% of 250,000 lek is 4,250 lek for each.
- The employee has 21,960 lek withheld, the employer adds 32,212 lek. In total 54,172 lek, that is 21.7% of the gross salary, not 27.9%, because the 63,584 lek above the ceiling carry no social insurance.
For the personal income tax (TAP) and the net pay on these salaries, see the gross to net salary calculator.
Where social insurance goes: pensions, maternity, unemployment
According to ISSH, the 24.5% of social insurance is split into five branches:
| Insurance branch | Rate |
|---|---|
| Pensions | 21.6% |
| Maternity | 1.4% |
| Unemployment | 0.9% |
| Sickness | 0.3% |
| Accidents at work | 0.3% |
| Total | 24.5% |
The split explains two other rates. The self-employed rate of 23% equals pensions and maternity together (21.6% + 1.4%). Voluntary insurance covers only pensions: 21.6% of the minimum wage, that is 10,800 lek a month.
Contributions of the self-employed in Albania in 2026
A self-employed person pays the contributions themselves, on bases that start from the minimum wage:
| Contribution | Rate | Monthly base | Monthly amount |
|---|---|---|---|
| Social insurance | 23% | 50,000 ALL, or more by choice, up to 186,416 | 11,500 ALL |
| Health insurance | 3.4% | 100,000 ALL, twice the minimum wage | 3,400 ALL |
| Total | 14,900 ALL |
This makes 44,700 lek a quarter and 178,800 lek a year. In 2025, with the minimum wage at 40,000 lek, the monthly amount was 11,920 lek (9,200 + 2,720), so the increase is 2,980 lek a month. Those who choose the maximum base pay 42,876 lek social insurance a month, while health insurance stays at 3,400 lek.
For each unpaid family worker, the same 11,500 and 3,400 lek are paid, on the same bases.
Contribution compensation for the minimum wage: the deadline ended on 31 October 2026
With its decision of 6 March 2026, the Council of Ministers refunds employers the extra contributions that arose from the rise in the minimum wage. The compensation is 16.7%, the same as the employer’s contributions, on the difference between the September 2025 salary and 50,000 lek. It is paid for each month from January to September 2026.
The conditions under the decision:
- In the September 2025 payroll list (the monthly payroll declaration) you have employees on a gross salary of 40,000 to 49,999 lek. Their number is the basis of the compensation.
- You do not have only one employee in total on the payroll list.
- You are not a state entity or public body and are not registered as self-employed.
- At the time of applying you have no outstanding obligations (principal) for insurance contributions.
- You applied on e-Albania within the deadline, from 1 April to 31 October 2026, for the months you claim.
The compensation is paid every month by the regional directorate of the National Agency for Employment and Skills, into the entity’s bank account. For an employee on 45,000 lek in September 2025, the compensation is 16.7% of 5,000 lek, that is 835 lek a month and 7,515 lek for nine months. For an employee on 40,000 lek, it is 1,670 lek a month and 15,030 lek in total. If you have reduced the number of employees, the compensation is calculated on the average per employee, multiplied by the current number.
Deadlines for declaring and paying contributions in Albania
- Under corporate income tax (profit tax): the payroll list is declared and the contributions are paid by the 20th of the following month. The October 2026 contributions are paid by 20 November 2026.
- Under the simplified profit tax: contributions are paid every quarter, by the 20th of the first month after the quarter: 20 January, 20 April, 20 July and 20 October. For July-September 2026, the deadline is 20 October 2026.
- Late payment: late-payment interest is charged on contributions paid late, at 120% of the Bank of Albania interbank rate. From 8 October 2026 it is 7.8%.
The recommended solution: devBooks and devHR for the payroll list
The devBooks human resources and payroll module calculates the payroll list with bonuses, deductions and public holidays. With posting schemes, the payroll list goes into the accounts by itself, and you can also export it to Excel. devHR keeps clock-ins and clock-outs, shifts and leave, and passes the human resources data to devBooks. Neither of them pays the contributions or applies for the compensation on e-Albania: you make the payment at the bank, and the application yourself or with your accountant.
Sources
- ISSH: Compulsory insurance (rates, insurance branches and the self-employed)
- ISSH: Voluntary insurance
- DPT: “Nga 1 janari 2026, rritet paga minimale dhe maksimale” (From 1 January 2026, the minimum and maximum wage rise)
- DPT: Social and health insurance contributions
- Law no. 7703/1993 “Për sigurimet shoqërore në Republikën e Shqipërisë” (On social insurance in the Republic of Albania), published by ISSH
- Law no. 10383/2011 “Për sigurimin e detyrueshëm të kujdesit shëndetësor” (On compulsory health care insurance), published by DPT
- Council of Ministers: decisions of 6 March 2026, contribution compensation for the minimum wage
- DPT: Tax calendar
- DPT: Interest rates for late-payment interest
- Salary deductions in Albania in 2026
- The devBooks salary calculator
To see how devBooks calculates the contributions in your staff’s payroll list, see devBooks pricing or write to us for a demo with your own data.