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Increase of the minimum gross salary
Effective from 1 October 2024, the minimum gross salary in Kosovo will be increased from the current € 170 to € 350 per month for full-time work schedules. This equates to € 2 per standard working hour.
Changes to personal income tax rates on employment income
Additionally, on 23 August 2024, the Kosovo Tax Administration has introduced revised personal income tax rates on taxable employment income as follows:
|
Tax rate |
Monthly taxable income [€] |
Annual taxable income [€] |
|---|---|---|
|
0% |
up to 250.00 |
up to 3,000.00 |
|
8% |
250.01 up to 450.00 |
3,000.01 up to 5,400.00 |
|
10% |
450.01 onwards |
5,400.01 onwards |
These new tax rates were introduced under Law No. 08/L-142 “On Amending and Supplementing the Laws Determining the Amount of Benefit at the Level of Minimum Wage, Procedures for Setting the Minimum Wage, and Tax Rates on Annual Personal Income”.
Updates to the Electronic Tax System
To accommodate these changes, the Kosovo Tax Administration has initiated updates to the Electronic Tax System, effective from 1 September 2024. The updates aim to ensure that monthly payroll declarations are properly aligned with the new regulations.
How EY Can Help
Our dedicated payroll and tax team at EY is fully equipped to assist you in navigating these legislative changes. Our services include:
- Monthly payroll and HR administration services for multinational and local companies
- Comprehensive guidance on setting up your payroll function
- Advice on social security, personal income tax, and labour law issues related to staff remuneration
We are committed to supporting you through these changes to ensure a smooth transition and continued compliance with Kosovo's tax laws.
EY Albania and Kosovo Tax team
Milena Blagoeva, ACCA
Partner | Global Compliance & Reporting Services
Gentian Tata
Director | Global Compliance & Reporting (GCR)
Ina Curri
Manager | Global Compliance & Reporting