Meeting of the Council of Ministers/ Pension indexation measure approved

2026-04-24 16:27:00, Aktualitet CNA

The Council of Ministers held its next meeting today. Among the decisions taken at the meeting is the approval of the indexation of pensions at 6.4 percent.

According to the decision, the index is applied for the calculation of the annual individual assessed base, achieved through contributions paid and their revaluations, carried out until 2024, and is applied for the purpose of calculating the initial monthly pension amount, with the date of birth of the right, from 1.1.2026 onwards.

DECISION ON THE APPROVAL OF THE INDEXATION COEFFICIENT OF THE ASSESSED BASE OF THE YEAR 2024 FOR THE CALCULATION OF PENSIONS

In accordance with Article 100 of the Constitution, the second paragraph of Article 10, and points 1 and 3 of Article 59, of Law No. 7703, dated 11.5.1993, “On Social Security in the Republic of Albania”, as amended, upon the proposal of the Minister of Economy and Innovation, the Council of Ministers

DECIDED:

1. Approval of the indexation of the estimated base for 2024, with an index coefficient of 6.4%, calculated according to the criteria set out in Article 59 of Law No. 7703, dated 11.5.1993, "On Social Security in the Republic of Albania", as amended.

2. The index determined according to point 1 of this decision is applied for the calculation of the annual individual estimated base, achieved through contributions paid and their revaluations, carried out until 2024, and is applied for the purpose of calculating the initial monthly pension amount, with the date of birth of the right, from 1.1.2026 onwards.

3. The accumulative indices of the estimated base, achieved through salaries for the period 1994-2024, referring to contributions paid by months in this period and reference salaries by jobs and professions, determined by decision no. 561, dated 12.8.2005, of the Council of Ministers, “On the determination of reference salaries for the calculation of pensions”, as amended, by years, are according to Annex no. 1, attached to this decision.

4. After applying the 2024 index, the estimated base for the purpose of calculating the initial monthly pension amount, which will be determined by the date of entitlement, from 1.1.2026, cannot be higher than:

a) three times the minimum wage at the national level, determined by decision of the Council of Ministers, for wages for the period from 1994 to 31.12.2001;

b) the maximum salary at the national level, determined according to the criteria of Article 10 of Law No. 7703, dated 1.5.1993, “On Social Security in the Republic of Albania”, as amended, for salaries for the period from 2002 onwards.

5. The financial effects resulting from the implementation of this decision are related to the implementation of the pension determination formula and apply only to pensions that are determined by the date of birth of the right, from 1.1.2026 onwards, and are covered within the annual budget approved for the Social Security Institute.

6. The Social Security Institute is responsible for the implementation of this decision.

This decision enters into force after publication in the "Official Gazette" and extends its financial effects from 1.1.2026. / CNA