The minimum wage increases to 500 euros, who benefits? - The decision affects about 150 thousand private sector employees
Thousands of workers in Kosovo are expected to benefit from the increase in the minimum wage to 500 euros gross per month, which has come into effect since July 1. However, it remains unclear whether this increase will translate into a genuine improvement in living standards, in the face of inflation and the continued rise in prices.
The decision affects about 150,000 private sector employees, but experts estimate that the new minimum wage is not enough to cover the monthly expenses of a family in Kosovo.
The government of acting Prime Minister Kurti made this decision in October 2025, on the eve of local elections, and it came into effect in two phases, in January and July 2026.
The minimum wage, now 500 euros, was initially increased to 425 euros in January, from 350 previously.
With inflation rising to around 6.8 percent, and a slowing economy, according to the International Monetary Fund, the new minimum wage in Kosovo will not help improve the well-being of citizens, experts say. Meanwhile, representatives of the Private Sector Workers' Union have expressed skepticism about whether the minimum wage will be respected by companies that have contractual relations with state institutions.
In Europe, Kosovo was the country with the lowest minimum wage, 350 euros, while Luxembourg leads as the country with the highest minimum wage.
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