Employment
Minimum wage in Kosovo 2026: 500 euros
Kosovo's minimum wage rose to €425 in January and to €500 gross from 1 July 2026. What it is net, who it affects and what employers need to do.
Andi B. · · updated · 3 min read
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After several years at €350, 2026 brought two minimum wage increases in a row. For employers that means updated contracts, higher payroll and a bigger cost for every employee on the minimum wage.
What the minimum wage is now
| Period | Gross minimum wage (full time) |
|---|---|
| Until December 2025 | €350 |
| 1 January to 30 June 2026 | €425 |
| From 1 July 2026 | €500 |
The increase was set by government decision, based on the Law on Labour. The minimum wage applies equally to all employees with an employment contract, regardless of age or sector, and is also calculated per hour worked.
What the employee takes home
The minimum wage is gross. The employee's pension contribution and payroll tax are deducted from it. At the primary employer, with the current monthly thresholds (0% up to €250, 8% up to €450, 10% above that):
| €425 | €500 | |
|---|---|---|
| Employee contribution (5%) | −€21.25 | −€25.00 |
| Taxable base | €403.75 | €475.00 |
| Payroll tax | −€12.30 | −€18.50 |
| Net pay | €391.45 | €456.50 |
| Employer contribution (5%) | +€21.25 | +€25.00 |
| Cost to the employer | €446.25 | €525.00 |
The step-by-step calculation is explained in Payroll tax and pension contributions.
What employers need to do
- Check every contract. Any gross wage below €500 for full-time work must be raised from 1 July. Make a written contract annex with the new wage and the date it applies from.
- Update payroll and the monthly EDI return. Contributions and tax rise along with the wage.
- Check part-time work. The minimum wage applies proportionally: for 20 hours a week, the minimum is half the monthly amount.
- Don't take the shortcut. Declaring the minimum wage to ATK while paying the rest in cash is undeclared work. You risk a fine, and the employee loses pension contributions.
- Review prices and budget. For businesses with many minimum-wage employees (retail, hospitality, security, cleaning), the increase hits costs directly.
Who is affected most
The increase mainly affects low-wage sectors: shops, cafés and restaurants, call centres, light manufacturing and cleaning or security services. On Kerko you can browse businesses by activity, for example hospitality or shops.
The minimum wage and your first hire
If you're hiring for the first time, the minimum wage is only one of the things to keep in mind. Written contracts, probation, leave and ATK registration are covered in Hiring your first employee and The employment contract.
Frequently asked questions
What is the minimum wage in Kosovo in 2026?
From 1 July 2026 the minimum wage is €500 gross per month for full-time work. From January to June it was €425, and before 2026 it was €350.
What is the net minimum wage?
With €500 gross at the primary employer, after the 5% pension contribution and payroll tax, the employee takes home about €456.50 net.
Does the minimum wage apply to part-time work?
Yes, proportionally. The minimum wage is set for full-time hours, so part-time work is calculated by the hours worked.
What happens if an employer pays less than the minimum wage?
The Labour Inspectorate can issue a fine and the employee can claim the difference. Declaring a lower wage to ATK than the real one is also a violation.
This article is for information only and is not legal or tax advice. The minimum wage is set by government decision and can change; check the decision in force before calculating pay.
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