Ida Ismail
From January 2026, the Albanian government promises a “revolution” for pensions. According to the plan announced by Prime Minister Edi Rama, pensions of all categories will increase every month, in addition to the annual indexation that is usually applied. But experts say that this is not a genuine reform, but a temporary monthly bonus that will cost the state budget about 455 million euros in total. Meanwhile, the pension scheme itself continues to be failed and unstable.
Under the new scheme, which is expected to start on January 1, 2026 and will last until the end of 2029, pensions will increase each year in a differentiated manner according to categories. The urban pension with full years of work will increase by 1,800 lek per year, while the partial urban pension will increase by 800 lek. For rural pensioners, an annual supplement of 1,000 lek is foreseen, while beneficiaries of family pensions will receive 700 lek more each year. On the other hand, disability pensions will increase by 600 lek per year.
Rama promised that these figures will double in 2027, triple in 2028 and quadruple in 2029, bringing the average urban pension to 40.000 lek (400 euros) and the rural pension to 18.000 lek (180 euros), the family pension to 18.000 lek, while the disability pension to 30.000 lek.
"This is me and this is us, we say what we do and we do what we say," he declared during the presentation of the scheme.
A system that survives on public funds
Although the government calls it a “monthly pension increase,” it is actually a monthly bonus, which is not permanent and is not included in the legal basis of pensions. The law only provides for annual indexation, which depends on inflation and economic developments. Economic expert Romina Radonshiqi emphasizes that this initiative will have a positive impact on the personal budget of pensioners, but not enough to cover the real cost of living.
"This increase will be financed from the state budget, not from the pension scheme, because the scheme is unsustainable and needs reform."
A good part of the increase in pensions returns to the state budget. This is because most of this increase will go to consumption. This returns to the state budget and returns to the economy through various taxes and levies. On the surface, it is a very positive step, but on the other hand, the Albanian state will recover part of this amount that it gives.
Meanwhile, another government promise is to increase the minimum wage by 500 euros from January 1, 2026. This means more money for insurance in the pension scheme. The current pension scheme is considered by experts to have failed as it is covered every year with funds from the state budget.
According to data from the Ministry of Finance, the deficit of the social security scheme is covered by about 40-45% from citizens' taxes, i.e. from the state budget. Nearly 135 million euros were spent in 2024 from the budget to cover the deficit of the pension scheme. The reason is the low number of contributors, informality and emigration of the workforce. This has led to a structural crisis of the system, which requires urgent reform.
Elderly people survive between promises and poverty
In reality, the daily picture of Albanian pensioners is sad. In the protest held in front of the Parliament a week ago, dozens of elderly people demanded real pensions, not temporary bonuses.
One of them, Qani Shino, said: "Our food prices have increased, our salaries have doubled, while we have no money to buy medicine. The medicines we get with reimbursement are expired, the pharmacists themselves tell us."
Another pensioner present tells ACQJ: "They charge us money for every health visit. Our pensions don't go towards food or medicine. We voted for them, but our children are running away. If the government can't do its job, let it go."
In this difficult reality, many elderly people have addressed the government with open letters.
One of them is a 64-year-old pensioner from Librazhd, who sent a direct message to Prime Minister Rama, saying that with the pension she receives, she cannot make ends meet without the help of her son.
"My pension is 9.000 lek. I suffer from two chronic diseases, diabetes and asthma. My asthma pump is not reimbursed, while the expenses for medication are 15.000 lek per month. My pension is not enough for medication, food or rent. My soul aches for my only son, who works in three places to support me and my husband. He is sacrificing his future, he has no way to create his own family. Remember that you are God, but one day you will retire too. What will happen then to your patronages? Today I am almost on the verge of depression, because I don't know how to make ends meet with my disabled husband."
Bonuses, with no real impact on pensioners
In the last two years, in addition to pension indexation, the government has distributed four bonuses to pensioners, but with no real impact on their lives.
September 2024: Pension indexation by 4.1%.
December 2024: Year-end bonus from 10.000 to 15.000 lek according to categories.
The decision was publicly communicated by Prime Minister Edi Rama, as part of a "social package".
In March 2025 (Spring Bonus): 10.000 lek for those with a pension of up to 20.000 lek and 5.000 lek for those above this limit.
From October 1, 2025, pensions were indexed by only 2.5%, i.e. 475 lek more in the city and 225 lek in the countryside, justifying it with low inflation. However, INSTAT data shows that the average inflation for food and beverages in the period October 2024-August 2025 was 2.76%, which means that the pension increase is at the minimum compensation limit, with no real impact on purchasing power.
Meanwhile, on November 3, 2025, in the Laws Committee, Finance Minister Petrit Malaj said that this year too, it is envisaged that the year-end bonus for pensioners will be distributed according to the previous year's brackets. "Those with a pension of up to 20 thousand lek will receive 15 thousand lek and those with a pension of over 20 thousand lek will receive a year-end bonus of 10 thousand lek."
Economics expert Radonshiqi states that bonuses cannot be considered a way to increase pensioners' income, as they only have a financial impact in the month they are given and cannot be considered a solution to the problems faced by pensioners.
Albania, last in the region for the value of pensions
Albania ranks among the countries with the lowest pensions in the Balkans.
- Serbia: 388-433 euros/month
- Montenegro: 361-425 euros/month
- North Macedonia: 320-330 euros/month
- Bosnia and Herzegovina: 275-369 euros/month
- Kosovo: 150-256 euros/month.
Expert Radonshiqi states that "Albania is considered a country with the highest cost of living in the region and the lowest pension level, significantly increasing poverty. The inability to afford the costs has influenced the return of pensioners to the labor market."
After all the promises of “dignified pensions,” the reality remains the same: About 750 Albanian pensioners live amidst poverty, inflation, and institutional oblivion. Bonuses and rewards may bring temporary relief, but not dignity. Unless the way the pension scheme works changes, Rama’s monthly increases may only be a high cost to the state and little impact on the elderly. /acqj.al
