The government has approved the indexation of pensions at 6.4 percent. The decision applies to the calculation of the individual annual assessed base, achieved through paid contributions and their revaluations carried out up to 2024, and is implemented for the purpose of calculating the initial monthly pension amount, with the right accrual date from January 1, 2026, onward.
APPROVAL OF THE INDEXATION COEFFICIENT FOR THE 2024 ASSESSED BASE FOR PENSION CALCULATION In support of Article 100 of the Constitution, the second paragraph of Article 10, and points 1 and 3 of Article 59 of Law No. 7703, dated May 11, 1993, "On Social Insurance in the Republic of Albania," as amended, upon the proposal of the Minister of Economy and Innovation, the Council of Ministers
1. Approves the indexation of the 2024 assessed base with an index coefficient of 6.4%, calculated according to the criteria set forth in Article 59 of Law No. 7703, dated May 11, 1993, "On Social Insurance in the Republic of Albania," as amended. 2. The index determined under point 1 of this decision applies to the calculation of the individual annual assessed base, achieved through paid contributions and their revaluations carried out up to 2024, and is implemented for the purpose of calculating the initial monthly pension amount, with the right accrual date from January 1, 2026, onward. 3. The cumulative indices of the assessed base, achieved through wages from the period 1994–2024, based on contributions paid by month during this period and reference wages by jobs and professions, as determined by Decision No. 561, dated August 12, 2005, of the Council of Ministers, "On Determining Reference Wages for Pension Calculation," as amended, by year, are according to Appendix No. 1, attached to this decision. 4. After applying the 2024 index, the assessed base for the purpose of calculating the initial monthly pension amount, to be determined with the right accrual date from January 1, 2026, cannot exceed: a) three times the national minimum wage, as determined by a decision of the Council of Ministers, for wages from 1994 to December 31, 2001; b) the national maximum wage, as determined according to the criteria of Article 10 of Law No. 7703, dated May 1, 1993, "On Social Insurance in the Republic of Albania," as amended, for wages from 2002 onward. 5. The financial effects arising from the implementation of this decision are related to the application of the pension determination formula and apply only to pensions determined with the right accrual date from January 1, 2026, onward, and are covered within the annual budget approved for the Social Insurance Institute. 6. The Social Insurance Institute is tasked with implementing this decision. This decision enters into force after publication in the "Official Gazette" and extends its financial effects from January 1, 2026.