Despite repeated increases in the national minimum wage, Albania continues to rank last in Europe when measured by purchasing power, according to newly released 2025 data from Eurostat.
As of January 2025, Albania's minimum wage stands at 40,000 lekë, which converts to around €405. Ironically, this is a higher figure in euros than in the second half of 2023, when the same nominal wage was valued at €376—thanks only to favorable currency exchange rates. However, even with this apparent increase, Albania remains at the bottom of the European ranking.
Comparatively, neighboring countries have made greater strides. Serbia’s minimum wage has reached €619, while Montenegro’s is even higher at €670. The most recent data for North Macedonia, from early 2021, showed a minimum wage of €360—though it's likely to have changed since.
Why Purchasing Power Tells a Different Story
While the nominal value of wages provides a general picture, purchasing power parity (PPP) offers a more accurate assessment of what those wages are actually worth in everyday life. According to Eurostat, the minimum wage in Albania is the lowest in Europe when adjusted for PPP, highlighting how high living costs erode the real value of income.
PPP is a method used to compare economic productivity and standards of living between countries. By converting wages into a common currency known as the Purchasing Power Standard (PPS), PPP accounts for differences in price levels, helping to eliminate distortions caused by fluctuating exchange rates.
This analysis is based on a standardized basket of goods and services that reflect typical consumption patterns across different countries. In Albania’s case, even with a nominal wage increase, high prices continue to undercut the real value of the minimum wage.
The European Landscape
As of January 1, 2025, 22 of the 27 EU member states have implemented a national minimum wage. The five without one are Denmark, Italy, Austria, Finland, and Sweden. Across the EU, monthly minimum wages vary significantly—from €551 in Bulgaria to €2,638 in Luxembourg.
The EU member states are broadly divided into three groups based on minimum wage levels:
Above €1,500/month: Luxembourg (€2,638), Ireland, Netherlands, Germany, Belgium, and France (€1,802).
Between €1,000 and €1,500/month: Spain (€1,381), Slovenia, Poland, Lithuania, Portugal, and Cyprus (€1,000).
Below €1,000/month: Croatia (€970), Greece, Malta, Estonia, Czech Republic, Slovakia, Romania, Latvia, Hungary, and Bulgaria (€551).
Among the 10 EU candidate and potential candidate countries, seven have implemented national minimum wages: Montenegro, Moldova, North Macedonia, Albania, Serbia, Turkey, and Ukraine. Bosnia and Herzegovina, Georgia, and Kosovo do not have a national minimum wage.
For comparison, the U.S. federal minimum wage, when expressed in euros, stands at approximately €1,210 per month.
Conclusion
While Albania has made efforts to raise its minimum wage, the improvements are overshadowed by the high cost of living, making it the country with the weakest minimum wage in Europe in terms of purchasing power. Without addressing underlying economic challenges such as inflation and consumer prices, nominal increases will continue to fall short in delivering real progress for Albanian workers.