Government approves 4.1% pension indexation
The Albanian government has approved a 4.1% indexation of pensions. For the period from October to December alone, the financial cost to cover this increase will amount to 1.693 billion lek(around 17 million euros).
Why it matters
Despite recent wage increases for public administration and various professional categories, which have brought the average salary to 900 euros, pensions have not been adjusted for several years. Prime Minister Edi Rama has promised not only indexation but also the launch of a national discussion on increasing pensions.
A major issue with the current pension system is the underreporting of wages by many private businesses, leading to lower social contributions. This poses a risk to the sustainability of the pension system. For almost two decades, the government has maintained a tradition of offering a special end-of-year bonus to pensioners, with this year’s bonus expected to be higher, although the exact amount has yet to be determined.
Currently, there are 791,257 pensioners in Albania’s pension scheme.
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