New pensions, indexation coefficients are determined - 9.3% above the base. Who are the categories that benefit?
The government has approved the decision, which determines the indexation coefficients of the estimated base for 2023 for the purpose of calculating pensions, and which will affect all citizens who benefit from the right to a pension after January 1, 2025.
According to this decision, the estimated base for 2023 will be indexed with a coefficient of 9.3%. This index will be applied to calculate the annual individual base, which is then used to determine the initial monthly pension amount.
This index will directly affect the increase in the base on which the pension is calculated, making initial monthly pensions higher for those who are newly retiring.
This change only affects pensions with a start date from 1 January 2025 onwards. The indexation is based on contributions paid until the end of 2023 and is intended to reflect economic changes before the initial pension amount is calculated.
The decision also stipulates that, after the application of this index, the estimated base for calculating pensions cannot be higher than three times the minimum wage at the national level for the period 1994-2001 and that the maximum wage at the national level for wages from 2002 onwards.
For the period 1994–2023, indexation will be done according to salaries paid each month and according to jobs and professions defined in Decision No. 561 of the Council of Ministers of 2005.
The current formula for determining the initial pension, as amended by the 2014 reform, defines a basic pension of around 9,800 lek and a supplement of 1% for each year of insurance, multiplied by the average estimated base. This system aims to ensure that pensions are as fair as possible and in line with the contributions made.
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