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Eurostat report: Albania again has the lowest minimum wage in Europe according to purchasing power parity

2025-04-12 14:08:19 / EKONOMI&SOCIALE ALFA PRESS

Eurostat report: Albania again has the lowest minimum wage in Europe according

Continuous increases in the minimum wage in Albania have not managed to lift the country out of the bottom of the list in Europe, especially when it comes to purchasing power.

Eurostat has reported the first data on the minimum wage in Europe for 2025.

In Albania, the minimum wage has reached 405 euros, while the salary of 40 thousand lek is converted into euros. Ironically, the salary is higher in euros than in the second half of 2023, when it was calculated at 376 euros, although at that time it was still 40 thousand lek (the last increase was made in April 2023).

Even with the help of the exchange rate, the minimum wage remains lower than Serbia, which has brought it to the level of 619 euros, and Montenegro, which has 670 euros. For North Macedonia, the latest report is the first half of 2021, at 360 euros.

Although it has increased, the wage in Albania is worth less, due to the high cost of living. The Eurostat chart (bottom) shows that based on purchasing power, the minimum wage was the lowest in Europe at the beginning of 2025.

Eurostat explains that the measurement according to purchasing power parity (PPP) shows how many monetary units a given amount of goods and services costs in different countries.

The use of PPPs to convert expenditures expressed in national currencies into an artificial common currency, the purchasing power standard (PPS), eliminates the effect of price level differences between countries, created by fluctuations in currency exchange rates.

These data are derived by comparing price levels for a basket of comparable goods and services that are chosen to be representative of consumption patterns in different countries.

As of 1 January 2025, 22 out of 27 EU countries had a national minimum wage. There are 5 EU countries without a national minimum wage: Denmark, Italy, Austria, Finland and Sweden. Monthly minimum wages vary widely across the EU: from €551 in Bulgaria to €2,638 in Luxembourg.

Among the 10 candidate and potential candidate countries [1], 7 have a national minimum wage (Montenegro, Moldova, North Macedonia, Albania, Serbia, Turkey and Ukraine) while Bosnia and Herzegovina, Georgia and Kosovo do not.

Based on their national gross monthly minimum wages applicable on 1 January 2025, expressed in euros (€), the EU countries concerned can be classified into 3 different groups (see Figure 1, non-EU countries are shown separately):

Over €1,500 per month: This group includes Luxembourg, Ireland, the Netherlands, Germany, Belgium and France. Their national minimum wages ranged from €1,802 in France to €2,638 in Luxembourg.

From €1,000 to €1,500 per month: This group includes Spain, Slovenia, Poland, Lithuania, Portugal and Cyprus. Their national minimum wages were between €1,000 in Cyprus and €1,381 in Spain.
Under €1,000 per month: This group includes Croatia, Greece, Malta, Estonia, Czech Republic, Slovakia, Romania, Latvia, Hungary and Bulgaria.

Their national minimum wages ranged from 551 euros in Bulgaria to 970 euros in Croatia.

For reference, the federal minimum wage in the United States is €1,210 per month./ Monitor

 

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