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'No pension increase', World Bank's advice to the Albanian Government!

2025-02-05 14:56:09Biznes SHKRUAR NGA REDAKSIA VOX
'No pension increase', World Bank's advice to the Albanian
World Bank/Albanian Government

The 2014 reform has significantly improved the pension scheme and the ratio between social security contributions and pensioners.

But emigration, high informality, and underreporting of salaries are harming it.

This is the assessment of the World Bank, which, in a roundtable organized this Wednesday with the Albanian Government, proposed, in technical language, intervention through changing the scheme.

The Bank's experts proposed extending the retirement age, which according to them does not necessarily increase the retirement age.

Intervention to improve the equality of contributors in the system was also proposed.

The World Bank does not advise massive increases in pensions, arguing that such a move would increase pressure on the social contribution scheme.

Instead, bonuses, or supplementary indexations within the framework of certain specific conditions, says the WB, may be applied.

At the same table, Prime Minister Edi Rama had reservations about the World Bank's recommendations.

The Head of Government said in a public speech that the current scheme needs improvement, but that it will not be affected.

Meanwhile, the Minister of Economy, Blendi Gonxhja, emphasized the ratio between employees and pensioners, which is currently 1.1 to 1.

He called on citizens to reject undeclared payments, businesses to increase salaries, and state institutions to reduce parasitic positions in the administration.


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