Pensions, 1 billion euros fill the state coffers - 7-month period, income in the scheme increases by 118 million euros
The year 2025 is performing positively in terms of pension scheme provision, as income from social security and health insurance contributions has increased significantly.
Official data from the Ministry of Finance shows that for the period January-July 2025, approximately 104 billion lek, or about 1 billion euros, were collected in social and health insurance contributions from employees in the public and private sectors in Albania.
If we compare it with the same period in 2024, a high jump in revenue is observed, by about 11.8 billion lek or 118 million euros. Expressed as a percentage, the revenue growth is recorded at 12.8%.
There is also a significant increase compared to the planning made for this period of around 23 million euros.
On the other hand, this figure is a record in the last decade, increasing by over 152% compared to 2015, where the scheme's revenues were only 416 million euros in 7 months.
This positive performance has been influenced by several factors. First is the increase in salaries in the public sector, followed by the private sector, causing the average salary to exceed the level of 900 euros per month and consequently the employees' contributions payments to be higher.
The second is related to the anti-informality reform extended to several sectors and focused mainly on under-declaration of salaries, which led to an increase in declarations and consequently in income paid from contributions.
The other factor is related to the increase in the number of businesses opened in Albania and good administration by the tax administration, which seems to be somewhat compensating for the lack of labor force in the country.
But while the revenues in the budget of the Social Security Institute have increased, in parallel, the expenses in the scheme have also increased at the same level, which in the 7-month period are recorded at 148 billion lek or about 1.5 billion euros. The deficit in the scheme is estimated at approximately 440 million euros.
The minimum payment for social security and health insurance contributions per individual is around 11 thousand lek per month.
Currently, with the advice of the World Bank, the Albanian government is preparing a new social protection reform, with the aim of further increasing support for these categories, as well as ensuring a fairer ratio between the level of contributions and benefits in the pension scheme.
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