Starting July 1, pensions in Albania will increase, with urban pensions rising by 4% and rural pensions by 5%. Out of approximately 754,000 pensioners nationwide, around 550,000 people will directly benefit from the increase.
Pension expert Armela Duka explained in a television interview that the increase is a mandatory annual indexation required by law, designed to offset the effects of inflation.
“This is an indexation aimed at cushioning the impact of rising prices,” Duka said, adding that the government is legally obliged to implement this measure every year.
According to her, the increase applies to three main categories of beneficiaries: old-age pensioners, disability pensioners, and survivor pension recipients. She noted that urban pensions will increase by 4%, while rural pensions will rise by 5%.
Duka emphasized that Albania currently has around 754,000 pensioners, with approximately 550,000 qualifying for the indexation.
The average urban pension in Albania exceeds 20,000 lek per month, while the average rural pension stands at around 18,000 lek. She explained that the long-standing gap between urban and rural pensions is largely due to lower social security contributions in the agricultural sector, which has historically been affected by informality.
The expert also argued that the indexation should have been introduced earlier in the year.
“These indexation measures or other subsidies should have been implemented in February to better absorb the impact of the global economic crisis,” she said.
Despite the delay, Duka described the increase as positive, noting that consumer prices remain high and the cost of basic goods continues to put pressure on pensioners.
According to her estimates, the 4% and 5% increases will translate into an additional 500 to 800 lek per month, depending on the type of pension. While the increase offers some relief, she stressed that the rising cost of living remains the biggest challenge facing pensioners across the country.
