From July 1, pensions will be indexed. Expert Duka: 550,000 beneficiaries across the country, here is what the monthly increase will be

From July 1, around 550,000 pensioners in Albania will benefit from the new pension indexation, a measure aimed at partially offsetting the rise in prices of goods and services in the market.

According to the new scheme, urban pensions will increase by 4%, while rural pensions will increase by 5%. In total, the country has around 754,000 pensioners, but the direct beneficiaries of this increase are about 550,000 of them.

In an interview for the program Goodmorning Albania, pension expert Armela Duka emphasized that this is a legally mandatory indexation directly linked to inflation. “This is an indexation aimed at absorbing the impact of rising prices,” she said, adding that it is a measure that “the government must implement year after year.”

Outlining the categories included in the scheme, she clarified that “there are three categories: disability pensioners, old-age pensioners, and family pensioners,” while noting that the urban-rural differentiation remains in the system, with “urban and rural pensioners receiving respective increases of 4% and 5%.”

According to her, the situation of market prices makes this intervention necessary. She also provided an overall picture of the system, noting that there are 754,000 pensioners in total, with 550,000 benefiting from the increase.

“This indexation is a legal obligation that the government must carry out year after year. There are three categories it covers: disability pensioners, old-age pensioners, and family pensioners. Urban and rural pensioners will receive respective increases of 4% and 5%. We are facing price increases, fuel costs, and it is difficult to monitor these price rises, especially for pensioners.

There are 754,000 in total and 550,000 beneficiaries. The average pension in Albania is over 20,000 ALL for urban pensioners and around 18,000 ALL for rural ones. There has always been a gap, which is linked to the lack of social contributions. Agriculture has been a sector prone to informality.

This indexation or various subsidies should have been implemented in February to mitigate the effects of the global crisis. However, it is still good news, as we are not in a situation of price normalization and the consumer basket remains expensive,” the expert stated.

According to the expert, this historical gap is related to the structure of the labor market and social contributions, adding that “agriculture has always been a sector prone to informality.”

In her assessment, the timing of implementation could have been earlier, as “this indexation or various subsidies should have been implemented in February to mitigate the effects of the global crisis,” but she still considers it a positive development given the current high price levels.

According to estimates, she noted that the 4% and 5% increase translates into a monthly addition of about 500 to 800 ALL, depending on the pension category. While the relief is limited, the pressure of the cost of living remains the main challenge for pensioners in the country.

“KORÇA BOOM”