The pension scheme causes a burden of 42 billion ALL to the state budget, and significant reforms are expected.
Enkelejd Musabelliu, adviser of the Minister of Social Welfare and Youth, explained that the working group will discuss the social pension.
“The social pension will be something as high as to guarantee the minimum decency for the life of every Albanian retired person, but it will not be available to those who haven’t contributed at all. We need to be part of this scheme in order to receive social pension”, Musabelliu declared.
A working group will be established within the few months of this year, led by the Minister of Social Welfare. The group will decide about the new contribution scheme and the benefits from the insurance scheme.
“The minimal wage that contributes is around 19.100 ALL, while the maximal is 75.100 ALL. Since there is a ceiling pension, which cannot be higher than the double of the lowest pension that is given by a government decision, this scheme has pressed the difference between the minimal and average pension, and has made those with high salaries have no interest to pay it. An option to reduce the deficit is increasing the contributes for those with high salaries, and remove the ceiling so that those with higher salaries can have higher pensions. The worldly practice is to decide a certain age and everyone who belongs to this age will automatically pass in a new scheme”, Musabelliu declared.
There are 561.000 retired people in Albania who need 94 billion ALL each year. The informality and the low number of contributors makes us have one contributor for one retired person, while the normal scheme would be 6 contributors for one retired person.
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