Albania’s social security, health insurance rates among the lowest

TIRANA, Feb. 19 – Albania’s social security and health insurance rates are among the lowest in the Balkan region, a study by Open Data research centre. At 27.9 percent, Albania’s social and health contribution rate is higher only compared to Macedonia’s 27 percent and Kosovo’s 10 percent.
Bosnia and Herzegovina, Bulgaria, Montenegro and Serbia apply social security and health insurance rates between 30.7 percent to 41.5 percent.
Albania’s social security contributions currently stand at 24.5 percent, of which 15 percent is paid by employers and 9.5 percent by employees. Meanwhile, health insurance contributions are at 3.4 percent, shared by 1.7 percent between employers and employees.
The minimum wage to calculate social security contributions in Albania stands at 19,026 lek (Euro 133) while the maximum wage is at 95,130 lek (Euro 665). The minimum wage in Albanian stands at 22,000 lek (Euro 154).
Meanwhile, the shift to progressive taxation on corporate and personal income starting January 2014 has made Albania less competitive to other regional countries as far as the tax burden is concerned. Data show the increase of the corporate income tax to 15 percent for mid-sized and big enterprises ranks Albania now ranks Albania on par to Serbia which increased corporate income tax to 15 percent in 2013.
Macedonia, Bosnia and Herzegovina and Kosovo continue applying a 10 percent tax rate while Montenegro implements a 9 percent tax.
EU member Croatia and EU aspirant Turkey apply the highest rate in the region at 20 percent.
The shift to progressive personal income tax has also increased Albania’s tax rate for people earning more than 130,000 lek/month.
The latest 2014 World Bank Paying Taxes report estimates the total tax rate in Albania at 31.7 percent of profit, considerably higher than in Croatia, Macedonia, Montenegro, Bosnia and Herzegovina, Kosovo, but lower than Serbia.