From Wednesday, Kosovo's minimum wage officially rises to €500 gross per month, marking the second and final phase of the government's wage reform and bringing higher earnings to an estimated 150,000 private-sector employees. The increase follows an earlier adjustment on January 1, when the minimum wage was raised from €350 to €425, completing the government's plan approved in October last year to gradually lift the monthly minimum salary to €500 by July 2026.
The new minimum wage applies to all full-time employees and corresponds to an hourly rate of €3, according to the government. Acting Finance Minister Hekuran Murati previously said the decision followed detailed assessments of its impact on businesses and workers, as well as consultations with trade unions and business representatives.
While welcoming the increase, labor representatives have expressed concerns over enforcement. Jusuf Azemi, head of the Private Sector Workers' Union, warned that some companies, particularly those operating under contracts with state institutions and municipalities, have failed to implement even the previous €425 minimum wage. He argued that compliance remains inconsistent despite the legal obligation.
Kosovo's Central Labour Inspectorate has also identified the cleaning and private security industries as sectors at the highest risk of violating the new wage rules. Authorities said businesses found paying below the legal minimum will face misdemeanor proceedings and financial penalties following labor inspections.
The increase marks a significant shift in Kosovo's wage policy. According to the GAP Institute, the country's minimum wage remained unchanged for 12 years, from 2011 to 2023. During that period, workers under the age of 35 received a gross minimum wage of €130, while those over 35 earned €170. The age-based distinction was abolished in 2023, when the minimum wage was unified at €264 gross for all workers before rising to €350 in 2024.
Despite the latest increase, Kosovo's minimum wage remains among the lowest in Europe, although the gap with neighboring countries has narrowed. At the opposite end of the European scale, Luxembourg continues to have the continent's highest statutory minimum wage, highlighting the wide disparities in income levels across Europe.