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Salaries in Albania, drastic gap between the minimum and maximum pay

Salaries in Albania, drastic gap between the minimum and maximum pay
From a minimum salary of 160 Euros a month to those that amount up to 9 thousand Euros a month, what are the less paid and the best paid categories I Albania. For the first time, INSTAT issues an average of the salaries, but Albania doesn’t yet have an official minimum living level. The full data are given on the report

By Edison Kurani

The average salary of a person employed in Albania is 330 Euros a month, the minimum salary is 160 Euros and the maximum salary amounts to at least 9 thousand Euros.

For the first time, INSTAT-Institute of Statistics has published the official figures for the average salary offered in Albania. Gjergj Filipi, director of INSTAT offers details of the report about the work and the salaries of Albanians in 2014.

According to the report, an employed person in Albania is paid on average 45 539 ALL a month (330 Euros), or 1.8 Euros per hour of labor.

The gender gap in salaries is 10%. Thus, men’s average monthly gross salary is 10% higher than women’s.

Filipi says that this average salary covers all sectors of the economy and has been computed by using all the pay roll statements that enterprises file at the General Taxation Directorate.

Meanwhile, in European countries, the hourly pay rate varies from 6 to 8 Euros on average while in the US it starts from 8 USD an hour.

Meanwhile, the minimum gross salary that the Albanian state recognizes is 22 thousand ALL or 160 Euros, while the net one is 18 thousand ALL or 130 Euros.

On the other hand, high salaries are much higher than the minimum ones. Some foreign companies pay up to 1,2 million or 9 thousand Euros a month for their employees. The number of people who are on such pay is small, however, unofficially it’s known that there are people who receive between one thousand to three thousand Euros a month, but their declared salary is up to 10 times smaller, in order to evade taxes.

General characteristics of the labor market in Albania, 2014

Over the year 2014, according to Labour Force Survey estimates:

  • 55.5 % of the population aged 15-64 years old is employed, 11 % is unemployed and 38,5 % is economically inactive (outside the labour force).
  • 58 % of male population aged 15-64 years old are employed, 14.2 % are unemployed and 48.7 % are outside the labour force.
  • 43.4 % of female population aged 15-64 years old are employed, 7.9 % are unemployed and 48.7 % are outside the labour force.
  • The unemployment rate for the age-group 15-64 years old is 17.9 %. Unemployment rate is 4.2 percentage points higher for males than females.
  • Compared to the previous year employment has increased by 1.3 %.
  •  From 2013 to 2014 unemployment rate has increased by 1.5 percentage points.

Employment

Over the year 2014 In Albania the number of employed is 1,037 thousand persons. Compared to the previous year employment has increased by 1.3 %. Labour force participation rate for the population aged 15-64 years old is 61.5 %. For male population aged 15-64, the labour force participation rate is 20.9 percentage points higher than females. The agricultural and services sectors have the highest share of employed with respectively 42.7 % and 39.4 % of the total employment. Analysis of employment by group professions reflects clearly the employment structure by sectors. In 2014, 53.5 % of employed are Skilled agricultural and trades workers, and 16.3 % are Clerical, service and sales workers.

According to the 2014 survey estimates, it results that 41.6 % of employed are employees, 26 % are self-employed (with employees or without employees) and 32.4 % are contributing family workers. Analysing the labour market in a gender perspective, females are 1.7 times more likely than males to be contributing family workers. Obtained LFS estimates show that 42 % of employed females and 25.1 % of employed males are contributing family workers. Based on the International Labour Organisation definitions, contributing family workers are classified as being in informal employment.

Unemployment

Over the year 2014 the number of unemployed in Albania is 219,797 persons. The unemployment rate for the age-group aged 15-64 years old is 17.9 %. Unemployment rate for males of this agegroup is 19.7 % and for females is 15.5 %. Male unemployment rate is 4.2 percentage points higher than females. This difference shows that males are more active in the labour market. Compared to the previous year there is an increase of the unemployment rate by 1.5 percentage points. Youth unemployment rate is 32.5 %, (35.6 % for males and 27.4% for females). Compared to the previous year, youth unemployment rate has increased by 5.3 percentage points.

Unemployed persons for at least one year account for 64.3 % of all unemployed. Compared to the previous year, the share of long term unemployed to the total unemployment has decreased by 8.1 percentage points. Six in ten unemployed were looking for a job for the first time. Compared to the previous year the number of unemployed entering into labour market for the first time has decreased by 2.5 %. Analysis of the unemployment rate by educational level shows that in Albanian labour market in 2014 unemployment rate is higher among persons with upper secondary education (21.3 %) followed by those with university (17.2 %). Over the year 2014, unemployment rate among persons with primary education has decreased by 2.3 percentage points. Compared to the year 2013, unemployment rate among persons with lower secondary education has remained more or less the same, while it has increased for persons with upper-secondary and tertiary education. /ibna/

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