Who pays Albanians? The state is responsible for a third of the wages in the economy

In a developing economy like Albania's, the question of who bears the burden of wages is more than a statistic, it is a reflection of the real structure of the economy. The latest INSTAT data on national accounts by institutional sectors for 2024 shows that compensation of employees, i.e. wages and contributions paid to citizens for their work, accounts for 33.98% of the country's total gross value added, with a significant increase from 30.41% in 2023. But who really pays Albanians?

The non-financial sector, which includes private companies in the manufacturing, construction, trade and other services industries, is at the top. This sector accounted for 52.78% of total employee compensation in 2024, a figure that confirms the dominant role of private business in paying the Albanian workforce. This share has remained stable in the last four years, with a slight increase from 51.76% in 2021.

In second place comes the public administration sector, which covers 27.4% of wages in the economy. Despite a decline compared to 2021 when it covered over 31% of the total, the state continues to be a major employer, accounting for close to a third of all labor payments in the country.

The household sector, which includes payments to employees engaged in small businesses, self-employed work or households, has seen steady growth. From just 11.67% in 2021, its share of total compensation reached 15.1% in 2024. This growth signals informality, but also an expansion of work in self-employment or microbusinesses.

Meanwhile, the financial sector, which includes banks and financial institutions, has a modest share in employee compensation, with only 3.27% of the total in 2024, a figure that is down from 2022. An even smaller role is played by the Non-Business Institutions sector (NGOs, foundations, etc.) that serve families, with only 1.44%.

So, more than half of Albanians are paid by private business, more than a quarter by the state, and the rest by families, finance, and non-profit sectors./ SCAN

Happening now...

00:02 SPORT

Crazy about Muç! The president of the Trabzonspor fans' association calls: Let's buy him with our own money!

00:01 crossword

Free scheme December 17

23:52 SPORT

Jurgen Klopp picks his 4 greatest coaches, includes a historic rival

23:45 BOTA

Mossad Chief: Our Responsibility to Prevent Iran from Restarting Its Nuclear Program

23:41 SPORT

Total emergency in Arsenal's defense, Ben White also injured

23:37 POLITICS

Salianji thanks the Democrats after the meeting in Elbasan: I invite every opposition member to join us to make the DP victorious again

23:23 HAPPENING NOW

Part of the mafia clans/ Who is "Shabani" who led the drug trafficking in Italy! The key role is revealed

23:16 HAPPENING NOW

As is rare, 'Opinion' was not broadcast: Blendi Fevziu clarifies the situation after speculation

23:10 HAPPENING NOW

"The Black Eagle", who is the Albanian who sold drugs and was registered as a fruit trader in Ecuador?

23:07 POLITICS

Hoxha: Rama cannot be hypocritical, Berisha is himself a defendant for corruption

23:05 POLITICS

''The Assembly should approve SPAK's request''/ Xhemal Gjunkshi: Belinda Balluku must face justice

23:01 SHOWBIZ

Ola Bruko & Endri Prifti talk for the first time about their love and marriage plans

22:53 LIFE

Cats are officially declared national symbols in Thailand

22:51 BOTA

Billions of euros after Ukraine-Russia "peace"/ Analysis: Is Trump bargaining with the oligarchs?

Want to read more news