In 2022, the Average Wages for Public Employees only increased by ALL 1,571. It constitutes the lowest annual increase for the sector in the time frame starting from 2000 to 2022, during which the average increase has been ALL 2,505. The difference in the average salary in the state sector during 2022 was calculated by the Open Data Albania team by making use of available employment figures. Meanwhile, INSTAT has not yet published statistics regarding the average wages for 2022.

The average annual nominal wage increase for 2022 in the public sector is lower than the average annual increase for the years 2000-2022.



Source: INSTAT
Comments and Analyses: Open Data Albania

The Nominal Wage is to be understood as the amount of money each employee is paid (equal to the gross wage), whereas the Real Wage is another economic concept that measures real increase or decrease in the wage. The real wage is the nominal wage adjusted by the level of price change (inflation rate). It measures how many goods we can buy with the money we are paid, taking into account the increase in prices over time. The calculation estimates that the real average wage in the public employment sector (state) in 2022 not only did not increase, but due to the increase in prices based on the official reports, it has decreased. The reduction for the State Sector Real Wage occurs for the first time since 2000. Specifically, the increase in the average wage in the public sector is lower than the rise in the level of prices, which means that the real wage has contracted.

The average real wage in the public sector has decreased by 4.4% in 2022, compared to 2021. This means that employees in the public sector can buy 4.4% less goods (products, food and others) than in 2021, due to the shrinking in the average real wage.

There was a decrease in the real wages in 2016 as well, but at a rate of -0.3%, compared to 2015.

The most significant increase in the real wage over the years was recorded in 2007, with 14.1%.

For 23 years (2000-2022) the average annual growth of the real age is revcorded as 4.4%, whereas in the last decade (2013-2022) the increase  is only 1.2%.



Source: INSTAT
Comments and Analyses: Open Data Albania

Unlike the Public Employment Sector, the Private sector as a whole has recorded an increase in the average salary. In 2022, the average annual wages for salaried employees in the private sector is ALL 58,200. This year also marks the largest increase in nominal and real wages, compared to the years under examination. Accordingly, in 2022, the average wage has soared, reaching a value of 6,342 ALL or an addition of 12% than in 2022. However, the real increase of the average wage in this sector is only 5.5%. The year that have marked a decrease in the real wages in the private sector are the 2016 (a real decrease of -0.3%) and 2017, with a real decrease of -1.3%.



Source: INSTAT
Comments and Analyses: Open Data Albania

The average annual wage for all employees registered in the payroll tax system for 2022 is ALL 61,889. The real increase in the average wage for 2022 is 1.5%, which is entirely due to the rise in the level of wages  in the private sector (+5.5%), given that the increase in the public sector was negative (-4.4%).

The only year that marked a decrease in the average real wage is the year 2016, which was due to the lack of change in the minimum wage for 4 consecutive years (the 2014-2022 years were taken into examination).



Source: INSTAT
Comments and Analyses: Open Data Albania

The wages reform, announced by the Albanian Government, aims to increase salaries to the level of EURO 900 by 2024. But, a wage extention is necessary in the present year, due to the recent hike in prices (6.7% inflation during 2022as per INSTAT). In the meantime, wage policies must be carefully considered in times of rising inflation, because they can further encourage a chain of further inflation that is difficult to stop.

Download excel: Average Real Wages in the Public and Private Employment Sectors
Comments and Analyses: Open Data Albania
Contributed by: Ilir Brasha
Translated by: Rezarta Cushaj