Pensions, new wage indexation coefficients come into force

The pensions that will be calculated after July 1, 2024 will be indexed based on the new coefficients.

The decision "On determining the indexation coefficient of the estimated base of 2022, for the calculation of pensions", with the indexation coefficients of wages from 1993 to 2024, was published in the Official Gazette.

These coefficients will be used to calculate the initial amount of the pension starting from July 1, 2024.

"1. The approval of the indexation of the estimated base of 2022, with the 13.5% index, calculated according to the criteria defined in article 59, of law no. 7703, dated 1.5.1993, "On social security in the Republic of Albania", as amended. 2. The index determined according to point 1, of this decision, is applied for the revaluation of the estimated base achieved through contributions paid and their revaluations, carried out until 2022 and is applied for the effect of calculating the initial monthly amount of pensions, which will be set with a start date from July 1, 2024 onwards", the decision states.

The accumulative indices of the estimated base, achieved through the salaries of the period 1994-2022, referring to contributions paid by month in this period and reference salaries according to jobs and professions, determined by decision no. 561, dated 12.8.2005, of the Council of Ministers, "On the determination of reference salaries for the calculation of pensions", amended, according to the years, are according to appendix 1, which is attached to this decision.

The decision states that after the application of the 2022 index, the estimated base for the purpose of calculating the initial monthly amount of pensions, which will be set with a starting date from July 1, 2024, cannot be higher than:

three times the national minimum wage, determined by decision of the Council of Ministers, for the wages of the period from 1994 to 31.12.2001;

b) the maximum salary at the country level, determined according to the criteria of Article 10, of Law No. 7703, dated 1.5.1993, "On social security in the Republic of Albania", as amended, for salaries from 2002 onwards.

The financial effects, which derive from the implementation of this decision, are related to the implementation of the formula for determining pensions, are applied only to pensions that are determined with a starting date from the date of entry into force of this decision and are borne within the annual budget, approved for the Social Insurance Institute.

The decision enters into force after publication in the Official Gazette and extends its financial effects from July 1, 2024./Monitor