The government gives the second update on pensions, announces a major change in September

The government has officially announced the start of pension indexation by 2.7% from July, a decision accelerated due to rising inflation. Meanwhile, a major overhaul of the pension scheme is expected in September in cooperation with the World Bank.

However, while the ministry speaks about approval processes and consultations, economic expert Kujtim Hoxha has raised concerns about what is actually happening with pensioners’ finances.

According to the expert, the 2.7% increase is “a mockery”, as pensioners will ultimately receive only around 60 new lekë more per month, a figure that does not even cover the rise in prices of the goods they have been consuming during this period.

Hoxha has strongly criticized the lack of transparency regarding the €230 million that had been promised as a spring bonus. According to him, if distributed properly, this amount could have provided around 130,000 old lekë for each pensioner.

While the government is waiting until September to present the planned changes, the expert says the current scheme is also being viewed with concern by the World Bank as a system requiring fundamental reform. He described the current bonus as merely a “candy” intended to calm public dissatisfaction at a time when many pensioners are living in difficult conditions.

Here is what expert Hoxha said:

“The 2.7% indexation is a mockery, and it is even more disappointing that this figure amounts to only 60 lekë. Citizens benefit only 60 lekë per month. There are currently around 755,000 pensioners, and this level of increase is very problematic because it does not meet their needs. However, we should say that this should have happened back in February. The global crisis has had its impact.”

All other governments in different countries have made this change. Citizens have consumed goods and services during this period at higher prices, and today they receive only an additional 5,000 old lekë per month, which does not meet their needs.

To clarify with one sentence: pensioners receive an increase of 5,000 old lekë, while the 50,000 old lekë bonus is only given this month? To explain the 50,000 old lekë bonus, there are several questions that require answers.

At the end of 2025, the Albanian Parliament approved the 2026 budget, where the method and mechanism for rewarding pensioners were determined. It was stated that all unused funds by the end of 2025 would be allocated for the spring bonus. A total of €230 million was accumulated, and I want an explanation as to why this bonus was not used earlier, especially during a crisis period like the one Albania is facing.

Secondly, since it was distributed at this moment, the government must provide an answer — and that answer must come from the Rama government: Are those €230 million actually deposited at the Bank of Albania, or have they been misused? Naturally, if these funds were accumulated and were not distributed, then where is this money?

For me, there is only one explanation: it was used to attract attention back in December, and even more so today. The situation we are discussing is abnormal, with thousands of citizens taking to the streets to protest against the government, because this government has lost trust — or more precisely, it has broken the contract with citizens.

Regarding this indexation, the minister mentioned that maternity benefits would also be indexed. This is what she said, but she does not understand what the social insurance scheme actually is. I have a direct accusation against her on this issue because maternity benefits are part of short-term benefits. They are not subject to indexation, just as compensation payments are not subject to indexation either.

Therefore, compensations and other short-term benefits are not part of this process. It was good that she mentioned them, but she should have given an explanation on behalf of the government.

The Prime Minister of Albania should also explain what happens with Albanians who give birth abroad, because apart from the moral aspect of registering their children as Albanian citizens, they receive no financial support. They are not given the bonus that should be provided for every child born.

All citizens should know this — especially those who have experienced it firsthand. When they have children abroad, they come here to register them in civil records, but they do not receive any money from the government.

“KORÇA BOOM”