Construction, a sector with low wages and high informality: 25% of workers are paid 40,000–50,000 lekë

In total, the construction sector employs 64,572 workers, reflecting a strong concentration of wages in the low and middle brackets, according to the document “Risk Management Plan for the Construction Sector (Informality and Reference Wages),” published by the tax administration.

About one quarter of workers in the sector, or approximately 25% of the total, earn wages in the range of 40,001–50,000 lekë per month, making this bracket the one with the highest share of employees.

A significant portion of workers are also paid in the 50,001–70,000 lekë range, which includes about 22% of the total, as well as in the 40,000 lekë bracket, with around 18% of workers.

Meanwhile, 12% of employees are reported to earn wages up to 39,999 lekë, the same share as those earning wages in the 70,001–100,000 lekë range.

The percentage of workers with higher wages is significantly lower. Only 3% earn wages from 100,001 to 120,000 lekë, while 7% receive wages above 120,000 lekë per month.

In the document, the tax administration emphasizes that the construction sector remains one of the institution’s priorities due to the high level of informality and its direct impact on budget revenues and the labor market.

The introduction of reference wages and the use of in-depth risk analysis to identify cases of underreporting represent an important instrument in the formalization of the sector and the strengthening of tax administration.

Construction is dominated by residential buildings, with 27% of companies concentrated in this segment.

Among other things, the tax administration’s document highlights that, in total, there are 8,784 active taxpayers in the construction sector nationwide. About 4,123 entities, or 47% of them, operate in Tirana. Fourteen percent of construction firms operate in Durrës, while 6% are in Vlora and 6% in Fier.

Regarding the breakdown by type of activity, 27% of all construction entities are engaged in the construction of residential and non-residential buildings. Meanwhile, the construction of above-ground and underground railways represents the activity with the lowest share of taxpayers, at about 0.1% of all taxpayers in the sector.

The construction sector employs a total of 64,572 workers, of whom about 40% are engaged in the construction of residential and non-residential buildings.

“KORÇA BOOM”