Salaries law becomes another controversy between government and business

TIRANA, May. 8 – The approval of the law on preferential salaries for the private sector, which includes limits on minimum wages and other social contributions by employers, has brought a new wave of discontent from Albania’s business community. “Konfindustria”, the largest association of Albanian producers, has warned that the government initiative will have a perverse effect by forcing businesses to seek ways to avoid following such laws, rather than abiding by the law. The end does not justify the means has been the general reaction of the association’s general manager, Gjergj Buxhuku, who explained that the existing labor market is very problematic and cannot accommodate this difficult law. Experts argue that this law will give an incentive to employers to register their employees in lower positions than their actual ones in order to avoid paying higher taxes. A stronger reaction is expected from other businesses and business associations once information on this legislation receives widespread attention.