Economy and social security expert Kujtim Hoxha spoke in a television studio, explaining the pension performance for the remainder of 2026, emphasizing that after the 2.7% indexation in July, a second increase is not expected in October. According to him, the announced changes to the social security scheme are a task left to the World Bank, but they will only affect citizens who have not yet retired, while for current pensioners the payment amount remains fixed as an acquired right.
Hoxha explained that of the 230 million euro fund made available by the government, about 40 million euro have been spent on the July bonus of 5,000 lek, while another 190 million euro remain. The expert noted that this remaining fund should be used within this year according to the legal obligation of the budget and the agreement with the Bank of Albania.
If this money is distributed in full to 755 thousand pensioners and categories in need, the end-of-year bonus in December could reach from 13,000 to 15,000 lek (130 to 150 thousand old lek). In addition to the financial bonus, he suggested that the state should also intervene with easing policies, such as reducing VAT or oil excise, to amortize the increase in prices for citizens.
-Mr. Hoxha, in July, indexation of 2.7% and a summer bonus of 5,000 lek or 50,000 old lek. Now we are in September. By the end of the year, what should all those who follow us and who have retired or will retire expect?
The government has actually said that there will be a year-end bonus this year. We can discuss it together, but the indexation they did in October and the fact that it was done previously in July, can the July one exclude the October one? So, will there not be one in October or could there be one?
The pension problem is very broad and important for Albanian society, due to the fact that it is not only represented by pension beneficiaries who are in large numbers, around 755,000—it is a large number—but also due to the fact that pensions in Albania are very low.
To take an initiative to support this layer of society, there must be a lot of commitment, in fact, looking at and communicating a little bit about a better economy and the implementation of the state budget. Because it is claimed that the national income or gross domestic product is about 27 billion euros.
-So in a way, it’s not that simple to radically change pensions—the ones that are or even the others that will be linked…
I have rightly seen during this month, and even before, that there are various opinions that the pension scheme will change. This is also the idea that has been put forward by the government, but we must keep in mind one thing: this is a task left to the World Bank, which must change this scheme. It must change, but we must look at the essence of what can change in this social security scheme.
First of all, all citizens must understand that this, even if it changes, will be for the future, for those who have not retired. It will be a different formula, a combination, which… don’t hope, don’t hope, don’t hope for those who have retired. Several government laws have been passed; there was the previous law before ’93 which is 4171, another 4104 which is what it is, and some other laws which have their share in those who benefit from old age pensions today.
Although they may be few in number, they are part of the benefit from the social security scheme. This will also happen if the social security scheme changes, these will be called “acquired rights”. So, these pensions will not move, they will not decrease, but they can only be supported by bonuses and with the next indexation that will come. So the scheme does not fundamentally change for them, their scheme that already receives a monthly pension payment. So those who have left should not hope, I say this, and let whoever wants to leave, the change in the scheme and others and others affects only those who will leave.
And this is the World Bank’s duty to get this scheme out of this backwardness, which is backward in fact because that gap between income and expenditure that was here 28 years ago continues to be in those statuses and they are trying to keep it in that state. So they keep it with… with needles, I’m telling you, the sick, with syringes, with medicines, with syringes.
So this year, in 2026 but also in the coming years, I look at what the government can do, for example. This year it has declared that there are 230 million euros at the end of 2025, which would be used for the spring bonus—which was not used but was used in July—and in July they gave that 5,000 lek bonus, which is equal to 40 million euros.
-From a fund of 230 million euros, 40 million euros have more or less been spent, used… There are still 190 million euros left because indexation is another thing as part of social security funds, but it can also be provided by the state, but mainly by law only from insurance funds, which is not…
Then it falls to this fund that exists to be given within this year. The possibilities are that it will be given. The idea that it could be given in September, with the change of government, it could also give this thing, there could be a change, or it could be even later. Traditionally it has been given there at the end of the year.
If you divide this calculation by all those who benefit from old-age pensions, but also by the part that is about 30 thousand in economic assistance, who are in need and who are treated by the municipalities, it would mean that citizens would benefit from about 130,000 to 150,000, depending on the number that will be included by those others who are retired… it should be on average… I understand, but from 130 to 150,000 old people.
-Now, is it your obligation, Mr. Hoxha, excuse me and I will follow, to spend this remaining fund of 190 million euros or to spend it or give it immediately within this year, or can you use an amount of this and at the end of the year, citizens can receive less?
Now the government has this obligation. Why does it have this obligation? It included it in the 2026 budget law that the unused funds in 2025 be used, and it signed an agreement with the Bank of Albania, which will be the collector of this fund and then available to the government to use it with a certain criterion.
The criteria are then set by the government, but it is necessary to use it this year because we have said that the global crisis has begun, as a result of various international policies, wars and so on, which also has an impact on us. So, what should have been used in February-March and onwards, should be used to support these citizens, whether in monetary form or in other forms.
As the example of Greece was given, it has also given exact price reductions on almost 1600 products, removing VAT. Meanwhile, in our country, the price of oil is very high, 220-230 new lek is a lot for 1 liter of oil, and here it can intervene with policies because… someone can say for example: “What does the government have to do with oil prices?
Oil prices are set by the market between those who sell and those who buy”, that is, demand-supply, in other words, demand-supply. It is precisely in such cases that the Albanian state has the opportunity to intervene and must intervene, by reducing the part that it has in its own hands, that of excise and other taxes, by reducing them, or even by reducing VAT on various food products. This causes prices to fall and in a way compensates citizens—not only pensioners, but also other citizens.
-More or less, with the funds available, with the fact that it must be used within this year, with these arguments it must use this exactly. And the bonus at the end of the year can be from 13 to 15,000 lek, so from 130 to 150 thousand old lek…
Yes! But if you spend it all and if you include these layers, if they expand this, it will certainly give less. Of course, these funds are available and there is a possibility that, by studying them well, as many people as possible can benefit.