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New coefficients are approved: More money for those who retire after July 1

2024-08-02 14:16:59Biznes SHKRUAR NGA REDAKSIA VOX

New coefficients are approved: More money for those who retire after July 1

Seniors who will retire after July 1 of this year will receive more money. The government has approved the new salary revaluation coefficients for the effect of pension calculation.  

From 10,799 that was, the coefficient on which the salary will be calculated for those who have years of work before 1994 becomes 12,257. The salary levels of 83 professions are affected by the change.

Kujtim Hoxha, an expert on the pension system, says to A2 CNN: "To calculate a pension, the work period before 1994 is collected with the reference salary and after 1994 with the salaries that each citizen has realized and contributed. The total contribution of the individual is made by indexing these coefficients".

Thus, if a former transport driver retires now, his salary before 1994 calculated with the new coefficient will be ALL 39,668. If he retired before July 1, the salary on which his pension would be calculated would be 34,913 ALL, 4,755 ALL less.

"Just for the effect of the coefficients, if the person retired before July 1, he would receive about 13% more", says Hoxha.

Meanwhile, the coefficients on which the salary is calculated for the pension effect have also changed for the period after 1994. For the last two years, 2023 and 2024, the indexation formula is not applied, but the salaries are referred to as they are. But are these changes reflected in the elderly who have already received a pension for a long time?

"The person who retired before July 1st will only receive the indexation of pensions that is expected to happen in October", explains Hoxha.

The revaluation of wages, on the basis of which the contributions are paid, gives all those who are newly retired the opportunity to benefit more. This, since in addition to the contribution portfolio, the salary on the basis of which the contributions are paid has weight. The higher the assessable base for the purpose of pension calculation, the higher the monthly benefit will be.


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