A sharp rise in undeclared workers has been reported in Albania, with the government stepping up efforts to tackle the issue. New data shows a 27% increase in informal employment this year, adding pressure on the economy and workers’ future pensions.
Albania is facing a rise in informal employment, with undeclared workers increasing by 27% this year. Over 2,500 informal workers were identified in the first 11 months of 2024, compared to about 2,000 last year.
Blendi Gonxhja, the Minister of Economy, said that efforts to tackle informal employment have brought an extra 26.4 million lekë (£210,000) into the state budget each month.
Key sectors affected
Most undeclared workers are found in construction, trade, and garment sectors. Labour inspectors have carried out nearly 9,000 checks this year, leading to 1,200 suspensions and 179 fines.
Impact on workers’ future pensions
A major issue is businesses paying workers below the official wage to avoid taxes. This means workers’ pensions in the future will be lower, as pensions are based on declared wages.
The government has promised to continue its efforts to tackle informal employment and protect workers’ rights.
