Increase in pensions and new bonuses: Here's how the elderly will benefit from the latest changes to the scheme

Thousands of citizens continue to work even after they have retired, and nevertheless still pay social security contributions like all other employees. Democratic Party MP Igli Cara has proposed amendments to the social security law aimed at exempting this category from the obligation to pay contributions, as long as they have already contributed once for their pension.

“Is it right or not that a pensioner, after contributing for 39 years, continues to contribute to the system? They may even pass away after 10 years — is that fair? This makes no logical sense. We are talking about a group that keeps working because they need to, due to low pensions. We are talking about around 18 million euros — I know it is a lot, but we must understand which category we are talking about,” said MP Igli Cara.

The draft law foresees that the exemption would be temporary, lasting four years, and it is now being reviewed in parliamentary committees, but it does not have the support of the government. “This would reduce the revenues of the scheme. It would initially undermine the contributory principle of the system, further deepening the deficit and creating unequal treatment,” said Olta Manjani, Deputy Minister of Economy.

The scheme

The Deputy Minister of Economy, Olta Manjani, explains that the government is also discussing, within the framework of the new pension scheme, the possibility of returning these contributions as a bonus or increasing the monthly pension of pensioners who continue to work.

“The alternatives we are considering within the pension scheme, which has not yet been finalized, include an approach where contributions paid by pensioners after reaching retirement age are recognized and reflected, as has been done with the self-employed.

So either we recalculate the pension so that what they have contributed in the system is reflected in the pension amount, or we provide a bonus for each additional year of insurance,” Manjani said.

According to the explanatory report of this initiative, around 13,000 pensioners are working and continuing to pay contributions. The exemption of this category is argued in the report to increase the number of active pensioners in the formal labor market, reduce the double burden on them, and increase their income.

Other changes announced by the government

According to Prime Minister Rama, pensions will increase progressively every year, aiming to triple by 2028 and quadruple by 2029. Rama has also recently stated that parents caring for children with disabilities will receive pensions, as social security contributions will be covered by the state.

This support will begin with the next normative act in June.

“KORÇA BOOM”