Government’s new scheme for increasing pensions, Rama gives details

In the latest Sunday podcast, Prime Minister Edi Rama presented the new scheme for the annual increase of pensions. According to him, the increase made in January will be fivefold by 2030. At the same time, the government is also preparing a second pillar of the pension system, which will function as a complementary scheme.

“While we have stabilized and set in motion a scheme for annual pension increases, what was increased this January will be doubled next January, tripled in January 2028, quadrupled in January 2029, and will be fivefold in January 2030.”

Rama said that in parallel, the government is preparing a second pillar of the pension system, which will operate as a complementary scheme. Every employee who contributes a minimal amount from their salary, for example €1 per month, will receive an equal contribution from the state or the employer. According to him, this scheme aims to create an individual fund for each citizen, offering greater financial security in old age and strengthening the current pension system.

“We are also preparing another pillar of the pension scheme, which will complement the current system, the central pillar of pensions, creating a new space and a second opportunity for future support.

The idea is very simple: every employee who chooses to contribute a small amount from their salary, for example €1 per month, will receive an equal contribution from the other party—the state or the employer in the private sector. In this way, the contribution is doubled and, month by month, an individual fund is created, which is added to the pension received normally from the first pillar, the existing scheme.

This is absolutely not something ‘typically Albanian,’ because we do not do such things; we are learning from the best experiences and trying to bring proven models here. So, it is a well-known model that creates the possibility of gradually building a pension fund, providing more security for the individual and a more stable link between the employee and the employer, whether public or private. It is a financial security mechanism for old age and, I repeat, a complementary mechanism that does not affect but strengthens the current system.”

“KORÇA BOOM”