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Rama: We will not reconcile with underreporting payroll

TIRANA, Nov 1 /ATA/ Prime Minister Edi Rama analysed the wage levels in the country, comparing the public and private sectors, adding that there is underreporting in many areas.

” We receive more social insurance contributions from the increased wages in the public sector. After our efforts raised the number of contributors in the scheme from 520,000 to 810,000—mostly in the private sector—we’ve seen another increase in contributions. Now, with the wage raise, there is also a level of concealment from various sectors,” said Rama.

“There is no construction wage of 500-600-700 euros in Albania; it doesn’t exist. Wages in construction are above 800, 900, or even 1,500 euros, depending on the profile. When you see financial statements reporting 500-600 euros, why is that? Because we have established that there is no tax on wages up to 500 euros, but social insurance contributions are still mandatory. They pay you 500 euros through the bank and another 500 in cash. This is how a pensioner gets robbed, while the other person is digging their own grave for retirement,” continued Rama.

“The same thing happens in the tourism sector. Wages in tourism are on par with those in Greece, which is why this year we’ve seen a trend with people returning from Greece to work in our tourism industry. They have their homes here, transportation is easier, and of course, taxes and rent are not as high as in Greece. We will no longer accept such statements, and the General Directorate of Taxes has sent a notice to all businesses to ensure that when reporting payroll at the end of the year, they do not rob pensioners, but rather report payroll. If we receive statements that do not match reality, they will be sent back, and we will tell them that if they do not revise them, they will face criminal, rather than civil repercussions. For us, this is tantamount to robbery of pensions,” said Rama.

The Prime Minister stated that all these measures will translate into increased revenues for the pension scheme.

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