Minister of Finance and Economy, Ervin Mete, led the meeting of the Administrative Council of the Institute of Social Insurance (ISSH), where the decision was approved for the indexation of all categories of pensions, which the Institute of Social Insurance covers, according to the legislation in force.
Consumer Price Index of the basket of goods and services for pensioners, calculated by INSTAT, resulted in 8.6%.
Decision will go to the Council of Ministers for approval and it is predicted that from October 1, 2023, over 767 thousand beneficiaries of all categories of pensions will be paid indexed with this percentage. Even the social pension, which is benefited by Albanian residents over the age of 70, who have no income, will increase in the same percentage. 2,499 people nationwide will benefit from this measure.
Average pension (calculated as the product of all pension expenses with the number of pensioners) will increase to 18,794 lek per month from the current 17,306 lek, improving the pension replacement rate as an important indicator of the scheme.
Financial effects of the pension indexation policy for the remaining three months of 2023 are calculated at around 3.2 billion LEK, while the carrying amount for 2024 will be 12.1 billion lek.
