The two measures, included in the 2027 state budget, are expected to provide additional financial support to pensioners, helping them meet everyday expenses and improve their financial security.

The government has earmarked around 24 billion leks in additional funding to implement the measures, Malaj said in a statement.

“With the 2027 budget, we are increasing support for pensioners to help them better meet their everyday needs and enjoy greater financial security. We have allocated around 24 billion leks in additional funding for two measures aimed at increasing their income,” he said.

The measures include doubling the monthly pension bonus, with amounts varying by pension category, effective Jan. 1, 2027, as well as bringing forward the annual pension indexation to April, three months earlier than usual.

“Doubling the monthly bonus according to pension categories from Jan. 1, 2027, and indexing pensions in April, three months earlier than usual,” Malaj said.

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Speaking at a public meeting with local residents of Tirana’s Administrative Unit No. 5 on the draft 2026 budget, Rama said pensions will rise progressively each year, in addition to regular indexation.

He said the government had carried out extensive work to create a clear projection and include the full financial commitment for pensioners in the medium-term budget framework.

The Premier said that the pension increase is set to commence in January with a progressive rise in line with the government’s program.

“By end of this term in office, the urban pension rate will reach 40,000 leks from 27,350 leks currently,” he said, adding that pensions will increase progressively year after year.

“What you get in January 2026 will double in January 2027, triple in January 2028, quadruple in January 2029 and quintuple in January 2030,” Rama added.

The progressive increase – he went on saying – will also apply to partial urban pensions and to rural pensions.

“The rural pension, which is currently 11,500 leks, will rise to 18,000 leks,” PM Rama said.

The government head said a substantial amount will be allocated each year solely for pension indexation.

“For pension increases and indexation alone, an additional 1.7 billion euros will be spent over the next four years. This is an extraordinary sum for the Albanian state budget, but entirely deserved,” Rama said.

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There will be indexation for all categories of beneficiaries, including old-age, disability, family pensions, as well as special financial treatments for military personnel, miners, military industry employees and persons with constitutional functions or scientific titles.

The main goal of indexation is to preserve the purchasing power of pensions versus price increases and the effects of inflation.

The government has also set minimum and maximum limits for full old-age and disability pensions. Beginning from October 1, 2025, the pensions will not be less than 18,335 lekë and not more than 36,670 lekë per month. For former members of agricultural cooperatives, the minimum pension limit will be 12,554 lekë, while the maximum will be 18,335 lekë.

The social pension will also increase to 9,953 lekë per month, while the same amount will also be valid as a basic pension for those who complete the insurance period as defined by law.

The financial effects of this decision are estimated at 1.14 billion lekë, which will be covered by the fund for pension indexation policies provided for in the budget of the Social Insurance Institute.

The government aims to achieve an average pension of 400 euros for individuals who have fully contributed to the social security system and a minimum pension of 200 euros by 2030.

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Pension indexation is as a procedure based on the annual average index calculated by the National Institute of Statistics aimed at counteracting inflation and rising living costs.

The financial impact of this decision is projected to be 1.7 billion lek or 17 million euros for the remaining three months of 2024 alone.

Pension indexation aims at maintaining and improving pensioners’ purchasing power and counteracting inflation effects.

Albanian government has announced plans to review the current pensions scheme and the consultation process is expected to begin later this month.

In addition to the pension increase, the Minister of Economy, Culture and Innovation Blendi Gonxhja has stated that efforts are underway to provide a higher end-of-year bonus for pensioners compared to previous years.

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The government decided Thursday to endorse the pension indexation rate at 13.5% in 2022, calculated according to the Article 59 of the law on the social insurance contributions.

The index rate is referred as the basis for the revaluation of the estimated base through paid contributions until 2022, and is applied for the effect of calculating the initial monthly amount of pensions, which will be set with a starting date from July 1, 2024 onwards.

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According to Rama, “The package is conceived as a medium-term support, not as a temporary support extending over two or three months”.

“We have taken into consideration the fact that this crisis is of an unpredictable nature as to when it will end and our commitment is to give people now sustainable medium-term support and to intervene in several directions “, said the prime minister.

“For example, pensions are usually indexed once a year in April and this year they were indexed precisely in April, taking into account the effect of inflation. Now, for the first time they will be re-indexed and we shall have a re-indexation of pensions estimated at the rate of inflation, which goes to 6% and together with the previous indexation, it goes to 9 % as a whole indexation of the current year”, said Rama. /j.p/p.s./