Pensions, record income - 600 million euros paid by employees, an additional 65 million euros
Despite the low ratio between contributors and beneficiaries, the pension scheme has begun to improve.
Official data from the Ministry of Finance show that revenues from social and health insurance contributions have increased significantly this year.
Specifically, for the period January-April 2025, approximately 59.6 billion lek or about 600 million euros in social and health insurance payments were collected 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 6.5 billion lek or 65 million euros. Expressed as a percentage, the revenue growth is recorded at 12.2%.
There is also a significant increase compared to the planning made for this period of around 22 million euros.
On the other hand, this figure is a record in the last decade, increasing by over 60% compared to 2015.
Although the phenomenon of emigration continues to be problematic, the decline in fertility as well as the parallel increase in the number of beneficiaries from year to year, as some of the reforms undertaken in the last two years have somewhat compensated for the performance of the social security budget.
First is the increase in salaries in the public sector, a reform implemented in 2023-2024, followed by the private sector, as the increase in the minimum wage nationwide brought additional insurance obligations that employees must pay.
The second is related to the anti-informality reform, focused mainly on under-declaration of wages, which led to an increase in declarations by businesses and consequently in income paid from contributions.
The third factor is related to the increase in the number of businesses opened in Albania throughout 2024 as well as good administration by the tax administration, which seems to be somewhat compensating for the lack of labor in the country.
The minimum payment for social 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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