The 2026 state budget is expected to generate revenues of around €9 billion, of which €3 billion will be allocated to social payments.

In other words, for every three lek the government collects, one lek will be spent on pension increases and economic assistance payments. A portion of the funds will also go toward financing the “Baby Bonus” program, which will increase to 600,000 lek per child and will be paid in installments until the child turns five years old.

This social program aims to meet several government objectives set for 2030, including raising the minimum pension to €200 and the average urban pension to €400.

Additionally, through higher social spending, Albania aims to reduce the poverty rate, which currently stands at around 25% of the population. With next year’s budget, Albania is set to become the country with the highest level of social protection spending as a share of total expenditures in the Western Balkans.