Salary & Payroll Taxation in Albania (TAP & Sigurimet)
Payroll deductions in Albania are governed by the Law on Income Tax (Ligji per Tatimin mbi te Ardhurat) and social security regulations administered by the General Directorate of Taxes (DPT):
- Personal Income Tax on Employment (TAP - Tatimi mbi te Ardhurat Personale):
- Gross Salary up to 50,000 ALL/month: 0.0% Tax (Minimum wage exemption).
- Gross Salary between 50,001 and 60,000 ALL/month: 13.0% on amount exceeding 35,000 ALL.
- Gross Salary between 60,001 and 200,000 ALL/month: 13.0% on amount exceeding 30,000 ALL.
- Gross Salary exceeding 200,000 ALL/month: 22,100 ALL + 23.0% on amount exceeding 200,000 ALL.
- Mandatory Social Security Contributions (Sigurimet Shoqerore):
- Employee: 9.5%.
- Employer: 15.0%.
- Subject to statutory wage ceiling of 176,416 ALL/month (and minimum floor of 40,000 ALL).
- Mandatory Health Insurance (Sigurimet Shendetesore):
- Employee: 1.7% (uncapped).
- Employer: 1.7% (uncapped).
Statutory Regulatory Framework: Compliant with Law No. 29/2023 on Income Tax, Labor Code of the Republic of Albania, Law No. 7703 on Social Insurance (ISSH), and regulatory instructions issued by the General Directorate of Taxes (DPT) and Energy Regulatory Authority (ERE).