Months before the next parliamentary election, Kosovo’s* Prime Minister Albin Kurti has made a significant move by almost doubling the minimum wage, setting it at 2 euros per hour, equivalent to 350 euros gross per month for full-time workers.
This increase, which will take effect on 1 October, comes after a long struggle to update the minimum wage, previously stuck at 130 euros for those under 35 and 170 euros for those up to 65
The push to raise the minimum wage began in 2022, with the government initially proposing a rise to 265 euros gross. However, the proposal faced fierce opposition, blocking its progress for over a year, and was further delayed by a review from the Constitutional Court. With the court ultimately ruling that the amended law did not violate the constitution, Kurti’s government has now decided on a higher rate to better reflect the current economic realities.
In addition to the wage increase, new tax reforms have been introduced. Monthly salaries up to 250 euros will now be exempt from tax, a significant change from the previous threshold of 80 euros. Salaries between 251 euros and 450 euros will be taxed at 8 percent, while those over 450 euros will face a 10 percent tax rate. These changes are poised to have a substantial impact on Kosovo’s* workforce as the country heads towards its next election.
