Italy approves Pension Agreement with Albania, benefiting 500,000 Albanian emigrants

The Italian Senate has approved the Albania-Italy pension agreement with 129 votes in favor and none against, marking a historic milestone for Albanian and Italian workers who have contributed to social security systems in both countries. The agreement ensures that Albanian citizens in Italy and Italian citizens in Albania will be able to combine their years of work to qualify for pensions, preventing any loss of contributions due to migration.

Why is this important: The agreement marks the fulfilment of a long fought for demand by Albanian emigrants, as well as a promise by the Rama Government. It provides financial security for approximately 500,000 Albanian emigrants in Italy and 4,000 Italian citizens living in Albania, including business owners. Workers will now be able to apply for pensions in both countries, based on the total years of contributions paid. This measure ensures that individuals who have worked in both nations will not lose their rights to retirement benefits, even if they have not met the minimum contribution years in one single country. Coming on the eve of the elections, the agreement could potentially influence the vote of migrants who will vote for the first time in the May 11 elections.

Context: Senators presenting the pension pact highlighted the historical ties between Albania and Italy and the strong cooperation between the two governments. The final vote in the Senate, which saw no opposition, now awaits formal approval from Italian President Sergio Mattarella before taking effect. The vote was attended by Albania’s Minister for Relations with Parliament, Taulant Balla, who described the agreement as a significant moment in bilateral relations.

Under the new agreement, individuals will be able to combine work years from both countries to qualify for pensions. The General Mandatory Insurance Scheme will cover pensions for disability, old age, and family members of employed workers, as well as special benefits for self-employed workers, including artisans, traders, and farmers. Additionally, the agreement extends unemployment benefits and health coverage, including maternity leave and tuberculosis treatment.

What’s next: Once the agreement officially enters into force, individuals nearing retirement will need to apply at their respective social security institutions—Albanians in Italy with the Italian National Social Security Institute (INPS) and Italians in Albania with the Albanian Social Insurance Institute.

The agreement ensures that individuals will receive pensions from both countries in proportion to their years of contributions. The minimum requirement for pensions remains 20 years in Italy and 15 years in Albania. However, the agreement allows for years worked in both countries to be combined.

For example, a worker with 10 years of contributions in Albania and 10 years in Italy will qualify for pensions from both countries, receiving separate payments from each based on the respective contribution periods.

By preventing the loss of pension rights for migrant workers, this landmark agreement strengthens economic ties between Albania and Italy while ensuring that citizens receive the benefits they have earned, regardless of where they worked.