Minimum Wage Fixing Convention, 1970 (No. 131) - Albania (Ratification: 2004)

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2018, published 108th ILC session (2019)

The Committee notes the information provided by the Government, which answers the points raised in its previous direct request, and has no further matters to raise in this regard.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Articles 3 and 4(2) of the Convention. Criteria for determining the minimum wage and full consultations with the social partners. The Committee notes the adoption of the Decision of the Council of Ministers No. 566 of 14 July 2010 which raised the national minimum wage from 18,000 Albanian Lek (LEK) (approximately US$173) to LEK19,000 (approximately US$182) per month. The Committee also notes the Government’s indications about the equal representation of employers’ and workers’ organizations in the Wages and Pensions Commission of the National Labour Council – with three members each – and the exchange of information and data among the members of the Commission with a view to making recommendations on the level of the minimum wage. The Committee recalls, in this respect, that the Article 3 of the Convention specifies the social and economic factors, such as the workers’ basic needs, the cost of living but also the unemployment rate or levels of productivity, that should be taken into consideration in determining the minimum wage while Paragraph 13 of the Minimum Wage Fixing Recommendation, 1970 (No. 135), calls for periodical surveys of national economic conditions to serve as a basis for the discussions of the tripartite consultative bodies responsible for reviewing minimum wage rates. The Committee accordingly requests the Government to provide more detailed explanations on the socio-economic indicators or other sources of information used by the Wages and Pensions Commission of the National Labour Council when analyzing trends and adjusting the minimum wage.

Article 5 and Part V of the report form. Application in practice. The Committee would be grateful if the Government would provide in future reports up-to-date information on the practical application of the Convention, including, for instance, the approximate number of workers remunerated at the minimum wage rate, comparative statistics on the evolution of the minimum wage in recent years as compared to the evolution of indicators such as the inflation rate, inspection results showing the number of visits, violations recorded and sanctions imposed, and copies of official publications or studies on minimum wage policy.

Direct Request (CEACR) - adopted 2010, published 100th ILC session (2011)

Article 2(1) of the Convention. Differentiated minimum wage rates based on age. In the absence of the Government’s reply on this point, the Committee once again requests the Government to specify whether any differentiated minimum wage rates based on age are currently in force and, if so, to indicate how young workers are protected against wage discrimination when performing work of equal value.

Articles 3 and 4(2). Criteria for minimum wage fixing and full consultation with social partners. The Committee notes the Government’s indication that, in February 2010, the tripartite Wages and Pensions Commission of the National Labour Council analysed the trend of minimum wage increase in the period
1992–2009 and drew up a declaration enumerating the primary considerations in fixing minimum wage rates. The Government also indicates that, in consultation with the social partners, it was decided to raise the minimum wage this year by more than the annual inflation rate. The Committee requests the Government to provide more detailed information, including copies of any relevant texts, on the discussions held within the Wages and Pensions Commission and the declaration adopted concerning priority areas for further consultations when reviewing and fixing the minimum wage. The Committee would also appreciate receiving a copy of the legal instrument setting out the composition, mandate and rules of procedure of the tripartite Wages and Pensions Commission of the National Labour Council and a copy of the Decision of the Council of Ministers No. 522 of 13 May 2009.

In this respect, the Committee wishes to refer to its 2009 general observation in which reference was made to the Global Jobs Pact, adopted by the International Labour Conference in June 2009 in response to the global economic crisis, which places particular emphasis on the need to strengthen respect for international labour standards and expressly identifies wages-related ILO instruments as being relevant in order to prevent a downward spiral in labour conditions and build recovery (paragraph 14). The Global Jobs Pact further suggests that governments should consider options such as minimum wages that can reduce poverty and inequity, increase demand and contribute to economic stability (paragraph 23) and points out that in order to avoid deflationary wage spirals, minimum wages should be regularly reviewed and adapted (paragraph 12).

Article 5 and Part V of the report form. Application in practice. The Committee would appreciate if the Government would continue to provide information on the practical application of the Convention, including, for instance, the minimum wage rates currently in force for workers in the private and the public sectors, the approximate number of workers remunerated at the minimum wage rate, comparative statistics on the evolution of the minimum wage and the consumer price index in recent years, extracts from reports of the labour inspection services showing the number of infringements of the minimum wage legislation observed and sanctions imposed, copies of relevant collective agreements or official studies on minimum wage policy issues, etc.

Direct Request (CEACR) - adopted 2009, published 99th ILC session (2010)

Article 2, paragraph 1, of the Convention. Differentiated minimum wage rates based on age. The Committee recalls that under section 111(3) of the Labour Code, the Council of Ministers may establish differentiated minimum wage rates based on age in order to facilitate the access of young people to the labour market. The Committee once again wishes to draw the Government’s attention to the overriding principle of equal remuneration for work of equal value and therefore the need to ensure that remuneration levels are determined on the basis of objective factors such as the quantity and quality of work performed. The Committee requests the Government to clarify whether any differentiated minimum wage rates based on age are currently in force, and if so, to indicate how it is ensured that young workers are not subject to any wage discrimination as compared to adult workers when performing work of equal value.

Article 4, paragraph 2. Full consultation of social partners. The Committee notes the adoption of the Decision of the Council of Ministers No. 522 of 13 May 2009 which has raised, as from 1 May 2009, the minimum wage from 17,000 to 18,000 Albanian lek (ALL) (approximately US$195) per month, that is to say a 5.9 per cent increase. While noting the Government’s indication that the latest increase was based on the recommendation of the tripartite Wages and Pensions Commission, the Committee once again requests the Government to provide a copy of the legal instrument setting up the Wages and Pensions Commission and regulating its mandate, membership and operation. The Committee would also appreciate receiving copy of the Decision of the Council of Ministers No. 522 of 13 May 2009.

Article 5 and Part V of the report form. Practical application. The Committee notes the adoption of Act No. 9634 of 30 October 2006 on Labour Inspection and State Labour Inspectorate. It further notes the Government’s indication that 10,000 inspection visits were carried out in 2008 but no infringements of the minimum wage legislation were observed. The Committee would be grateful if the Government would continue to provide up to date information on the practical application of the Convention, including, for instance, the approximate number of workers remunerated at the minimum wage rate, comparative statistics on the evolution of the minimum wage and of the consumer price index in recent years, extracts from reports of the labour inspection services showing the number of infringements of the minimum wage legislation observed and sanctions imposed, copies of relevant reports or surveys of the Wages and Pensions Commission, etc.

Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes with interest the Government’s first report on the application of the Convention and wishes to draw attention to the following points.

Articles 1(1) and 4(2), (3), of the Convention. Minimum wage fixing machinery. The Committee notes with interest the establishment of the Wages Commission by Law No. 1416 of 10 May 2004 as one of the permanent tripartite consultative bodies under the National Labour Council. It also notes the Government’s indication that the composition of the Wages Commission was changed recently by increasing the number of employers’ and workers’ representatives and decreasing that of the government representatives with a view to ensuring a broader representation of the social partners. As a result, the Wages Commission is headed by the Director of the Wages and Pension Directorate of the Ministry of Labour, Social Affairs and Equal Opportunities, and it now consists of eight members including one additional government representative (from the Ministry of Finance), three representatives of employers’ organizations (the Council of Albanian Employers’ Organizations, Confederation of the Council of Albanian Employers, Albanian Industrial Confederation), and three representatives of workers’ organizations (the Albanian Confederation of Trade Unions, the Albanian Union of Independent Trade Unions and the Federation of Albanian Independent Trade Unions of Private Commerce, Banks and Services). According to the Government’s report, the draft decision of the Council of Ministers on the determination of the national minimum wage is drawn up by experts of the Wages and Pensions Directorate of the Ministry of Labour, Social Affairs and Equal Opportunities before being thoroughly discussed in the Wages Commission and finally transmitted to the Council of Ministers. The Committee requests the Government to transmit a copy of the legal text setting up the Wages Commission and to provide more detailed information on the mandate and functioning of the Wages Commission including, for instance, any recent activity report, survey of national economic conditions or other initiatives undertaken by the Commission with a view to assisting in the determination of the national minimum wage.

Article 2(1). Subminimum wage based on age. Further to its previous comment under Convention No. 26 on the need to carefully accommodate the principle of equal remuneration for work of equal value in any scheme providing for differentiated minimum pay rates on the basis of workers’ age, the Committee requests the Government to supply additional information on the possible establishment of lower minimum wage rates for young workers, as provided for in section 111(3) of the Labour Code.

Article 5. System of supervision and sanctions. The Committee notes the information provided by the Government that the application of the Convention is ensured by the State Labour Inspectorate authorized under section 202 of the Labour Code (Act No. 7961 of 12 July 1995, as amended) to apply a penalty which amounts to 30 times more than the monthly minimum wage. It requests the Government to provide up to date relevant information on, for instance, the preparation of new draft legislation on the State Labour Inspectorate and the strengthening of the labour inspection services, as previously reported by the Government under Convention No. 26. It would also be grateful if the Government would supply statistical information on labour inspection activities related to the enforcement of the minimum wage legislation showing the number of visits carried out, the violations reported and the penalties imposed.

Part V of the report form. The Committee notes that, by Decision No. 245 of the Council of Ministers dated 27 April 2006, the national monthly minimum wage was increased by 18.6 per cent from 11,800 leks (approximately US$122) to 14,000 leks (approximately US$145), while the national hourly minimum wage was fixed at 80 leks (approximately US$0.80). While noting the Government’s indication that the national minimum wage, combined with other statutory benefits, provides unskilled workers with a remuneration exceeding the minimum living costs, the Committee would appreciate if the Government would provide concrete information on the evolution of the national minimum wage in recent years as compared to the evolution of economic indicators such as the inflation rate. It would also be grateful if the Government would provide some indications as to the correlation of the minimum wage with the official poverty line and the approximate number of workers estimated to live under that line. Finally, the Committee would appreciate receiving copies of the “Assessment of the official minimum living costs in Albania”, carried out in December 2001, and another study on minimum wage by economic sector, carried out in October 2004, to which reference was made in the Government’s report.