Albania is moderately well prepared on social and employment policy and has made good progress by enhancing labour market institutions and job access, the 2023 EU Progress Report states.28 The new 2023-2030 National Employment and Skills Strategy focuses on job quality, skills development, and better matching of labour market demand and supply. Albania and the International Labour Organisation (ILO) signed the 2023-2026 Decent Work Country Programme to address key issues in working conditions and social protection, including work accidents, violence and harassment at work, low wages, and inadequate social security coverage. Albania's textile, clothing, leather, and footwear sectors face challenges such as poor working conditions and low productivity, the NSG reports. Integrating eco-innovation into national policies could enhance sector competitiveness, upgrade enterprises, and improve job opportunities. 

Adequate wages 

Despite positive steps towards raising public sector wages, a lack of detailed plans and the potentially negative impacts of the new Income Tax Law suggest that the progress is incomplete and fraught with challenges, the NSG notes. The Prime Minister's launch of a national plan to increase wages in the public sector in 2023 is a promising initiative. It is expected to boost average wages in both the public and the private sectors, potentially improving the overall standard of living for many people living in Albania.29 30 However, no document has been published detailing specifics of the implementation. Moreover, before this wage measure, the Albanian Assembly approved the controversial Law on Income Tax, Law No. 29/2023, dated 30 March 2023 31, which provides a broader definition of employment income and introduces progressive taxation on it. While this can be seen as fair, the specific thresholds might not significantly alleviate the tax burden on lower-income earners, weakening the national plan’s potential positive effects on wages.32 

Occupational health and safety 

Albania must enhance its health and safety regulations to align with EU standards, according to the NSG. This should be done by, in particular, strengthening institutional capacities and inspection processes and developing a new strategy for 2023-2030.33 At the moment of the drafting of this report, the strategy has not been put in place yet, despite its urgency. Albania suffers from a high rate of fatal work accidents, and it underreports non-fatal work accidents and occupational diseases. The country also lacks qualified safety experts. These factors obstruct the formulation of effective safety policies. The State Labour Inspectorate needs to improve its capacity to ensure workplace safety and fight undeclared work. The planned national OSH strategy covering 2023–2026 should address these issues, according to the NSG.34 Albania ratified the ILO Violence and Harassment Convention, 2019 (No. 190), but more work is needed to align national laws with the convention. The NSG emphasizes that efforts are needed to ensure laws are disseminated and enforcement capacities built. These should be supported by awareness campaigns involving various stakeholders and coordinated actions led by the National Labour Council and involving government ministries and stakeholders. 

Work-life balance 

In recent years, Albania has made significant strides in enhancing the work-life balance through amendments that integrate international conventions and treaties into its legal framework. One example is the introduction of up to four months of unpaid parental leave. In addition, there is strong advocacy for work-life balance and family-friendly work environments.35 While further detailed regulations are still required to align with EU directives, these advances represent tangible progress. Albanian workers spend about 43.7 hours per week at work, according to a study using data from Eurostat and Albania's INSTAT. This exceeds the average weekly working hours observed in EU countries, highlighting a difference in work patterns.36 Moreover, overtime is increasing in Albania, posing challenges as flexible work arrangements become scarcer, especially in sectors such as banking. 

Good practice 

Following an increase in the minimum wage in April 2023, the government provides monthly financial compensation of 1,674 ALL, corresponding to around €16.5, to minimum wage employees in certain sectors (industry, agriculture, forest, and fishing) to cover higher social security and health contributions.37 Beneficiaries of the compensation were only employees with a gross salary of up to 34,000 ALL per month. This measure, according to Pro Export Albania (PEA), favoured a low number in the manufacturing sector. The number of beneficiaries was 1,900 in the manufacturing sector, and no official figures exist for other sectors. At the request and insistence of PEA, it was achieved that the entitlement threshold was increased  from 34,000 to 40,000 ALL following the increase of the minimum wage.38 

Social assistance programmes in Albania have been expanded to support low-income families, the elderly, and people with disabilities through cash transfers and pensions. However, the coverage and adequacy of these programmes require improvement for them to effectively reach those most in need. The government aims to strengthen the social protection system by expanding coverage, refining its targeting of benefits, and improving the quality of service. 

The social protection system in Albania, although effective in responding to the COVID-19 pandemic, reveals certain structural gaps. Therefore, the NSG recommends that Albania extend contributory social insurance to cover greater numbers of excluded or insufficiently covered workers, particularly women, workers in rural areas, and own-account agricultural workers. The low coverage stems from limited contributory capacity and a lack of understanding of the benefits of the reformed social security law. Albania has reformed its social assistance scheme to improve targeting accuracy, resulting in a slight increase in average benefits per person but a decline in the number of beneficiary households and overall expenditure. In the context of Albania’s decentralization efforts, local governments need to be advised on ensuring a basic income and social services for all disadvantaged persons. 

Housing  

While Albania's constitution recognises the right to adequate and affordable housing as a social objective, challenges persist due to extensive informal construction and mass privatisation in recent decades. A study by the United Nations Economic Commission for Europe (UNECE) shows how this has led to a predominance of privately owned homes, many of which were initially built illegally.39 The report highlights how small the rental sector is for social housing. It accounts for about 0.1% of inhabited dwellings and faces stiff competition from the private market. The mortgage market remains underdeveloped, and less than 1% of homeowners have mortgage loans. A major factor is informal construction methods involving cash transactions and remittances.  

Albania has high housing prices relative to income – the third highest in Europe in 2023, the NSG reported.40 At the same time, informal construction has emerged as a means for some Albanians to secure shelter despite its negative impact on urban environments.41 Housing unaffordability is especially severe in Tirana, the capital, due to soaring property prices caused by factors such as money laundering.42 The UNECE report points out that up to 32% of properties in Tirana and coastal areas were purchased by non-residents, exacerbating the problem. Consequently, low-income families find it exceedingly difficult to buy a home.43 

Access to quality healthcare  

There has been some progress in access to quality healthcare, including the introduction of HPV vaccinations for 13-year-old girls44 and the adoption of a mental-health action plan for 2023-2026.45 Initiatives such as e-prescriptions and e-reports indicate efforts towards digitalizing healthcare delivery.46 

However, Albania's public health spending remains low, at 3.04% of GDP and 9.47% of total government spending. This is lower than in most countries in southeastern Europe and the EU and has led curative care to be given priority over preventive measures and primary healthcare.47 The COVID-19 pandemic exposed significant shortages in medical supplies and digital infrastructure.48 Infrastructure inadequacies, particularly in rural areas, hinder service delivery. Health insurance coverage for vulnerable groups such as women, people with disabilities, Roma, and Egyptians is insufficient.49 The pharmaceutical sector continues to struggle to protect patients from counterfeit medicine, and gaps persist in tobacco control and the management of cross-border health threats. 

Access to essential services  

Access to healthcare services has increased, the NSG reports. Education accessibility has improved thanks to reforms increasing school enrolment and enhancing the quality of education through new facilities, textbooks, and teacher training. In rural and remote areas, however, healthcare lacks specialised care and suffers from problems of affordability, while education suffers from disparities in outcomes and high dropout rates.50 Recent UNICEF studies highlight inadequate funding for preschool education, which particularly impacts vulnerable groups and necessitates urgent improvements in accessibility and affordability. Enhanced coordination among Municipalities, Local Education Offices, and the Ministry of Education and Sports is essential to optimise investments and better serve children with disabilities.51  To enhance long-term care, Albania has adopted a National Action Plan on Ageing 2020–2024.52 However, it may not completely fix the lack of access to adequate long-term care services. The NSG also reports significant challenges in the digitalization of social services, such as a 2022 cyberattack that slowed the process. 

The CIVICUS Monitor classifies Albania's civic space as "Narrowed," a status unchanged since 2018.58 This classification indicates that, while individuals and civil society organizations can exercise their rights to freedom of association, peaceful assembly, and expression, these rights are often violated through harassment, arrests, or assaults against critics of those in power, as well as through excessive force during protests and political pressure on the media. 

The NSG reports that media independence is compromised by attempts by the government, political parties, businesses, and criminal groups to exert undue influence, and that there are credible reports of senior media figures using their platforms for blackmail.59 There were also reports from journalists of delayed salary payments, violence, and intimidation. These financial problems have prompted journalists to rely on outside sources of income, which has led to questions over the independence and integrity of their reports. Journalists often practice self-censorship to avoid violence and harassment or to ensure employment. 

Involvement of civil society in the negotiations for joining the EU 

Albania’s legal and regulatory framework on the right to freedom of assembly and association is in line with international standards. A national electronic register of NGOs is foreseen for the end of 2023.60 The register consists of a state database which collects, organizes and stores the information for non-profit organizations (NPOs) electronically, in interaction with other structures such as the Civil Registry, Commercial Register, General Directorate of Taxes, Notary Register and the Social Insurance Institute. The register created by the High Judicial Council will be administered and maintained by the Tirana Judicial District Court. It will contain data related to the establishment, field of activity of NPOs, any changes in their status and form of organization, data related to representation and legal representatives, as well as other additional information provided by law.  The development of a structured electronic register is a significant step ahead as it promotes reporting and accountability in the activity of NPOs and it increases the guarantee of public trust regarding their administration and correct management. 

The legal framework for public consultation in Albania is aligned with European standards but faces challenges to become fully operative, especially regarding regular consultations on draft legislation and extending the scope of consultation to the implementation of laws. Civil society's role in the EU accession negotiations needs to be strengthened for its participation to become meaningful. That requires improved operational structures at the governmental level, such as the Partnership Platform on European Integration. Funding for civil society organizations (CSOs) remains inadequate, impacting their ability to influence policy effectively despite their large number.61 In addition, there has been no progress in the implementation of the roadmap towards an enabling environment for civil society. The roadmap remains highly dependent on donor support, which is provided mainly by foreign donors. This is a testament to the lack of concrete support and ownership from the government. A revision of the Law on voluntarism is still pending. 

Access to sustainable mobility: transport poverty

Albania faces challenges in electrifying its public transport due to financial constraints and technical expertise requirements. However, local governments have specific responsibilities to manage air quality.[1] In Tirana, the transport sector has a significant impact on pollution levels, posing risks to public health. (The heavy industry and energy sectors have minimal environmental footprints.)[2] Urban mobility in Tirana has been challenged by a steep rise in vehicle numbers since the late 1980s, which has led to severe traffic congestion, higher greenhouse gas emissions, and poor air quality. Even though some of the impacts of climate change are already being felt in Albania, the country is still at an early stage in the adoption, prevention, and implementation of mitigation measures.[3] To promote sustainability, there is a critical need to enhance alternatives by providing robust public transport, safe pedestrian facilities, and cycle paths. Although investments have shown positive outcomes, ongoing efforts are crucial to overcome obstacles to the planning and implementation of mobility solutions, such as insufficient personnel and technical capacities.

Good practice

As a good practice, the NGS highlights a project named “Sustainable Urban Transport in Tirana (SUTi)”[4] under the Transformative Urban Mobility Initiative (TUMI) to establish data-driven management, improve the bus system and its customer focus, and enhance walking and cycling infrastructure. Implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the German development agency, the project aims to contribute to sustainable and climate-friendly urban transportation.[5]

[1] Ministry of Turism and Environment (2019), DCM Managing Air Quality: https://turizmi.gov.al/wp-content/uploads/2019/07/vkm-412-2019-menaxhimi-i-ajrit.pdf

[2] Institute for Habitat Development and POLIS Press (2019), Decarbonisation of the Public Transport Sector in Tirana: https://www.co-plan.org/wp-content/uploads/2020/02/Decarbonisation-of-the-Public-Transport-Sector-in-Tirana_Rodion-GJoka.pdf

[3] Gjoka, RHoxha, Xh. & Bashmili, K., (2018), Governance for Climate Change Resolution. Annual Review of Territorial Governance in Albania: https://www.co-plan.org/en/governance-for-climate-change-rg-xh-kb/

[4] GIZ (2022), Sustainable Urban Transport in Tirana Tow Towards data-driven sustainable urban mobility action in Tirana: https://www.giz.de/en/downloads/giz22-en-factsheet-SUTi.pdf

[5] GIZ (2024), Improving alternative climate-friendly mobility in Tirana: https://www.giz.de/en/worldwide/103792.html