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Pensions, the new salary revaluation coefficients are disclosed. How many people does the new decision affect?

2024-06-20 10:14:45Biznes SHKRUAR NGA REDAKSIA VOX

Pensions, the new salary revaluation coefficients are disclosed. How many people

The new salary revaluation coefficients for the effect of pension calculation are clarified. Scan Tv has provided a copy of the draft decision of the Social Security Institute, which is expected to be approved within this month to be made official on July 1.

Unlike a year ago, the actualization of salaries before '94 will be done with the coefficient of 12.257, thus being reflected in the level of salaries for 83 professions. After 1994, as can be seen in the table, the coefficients are different, decreasing from year to year. For the year 1995, the coefficient is 9.864, for the salaries of 1996 it is 7.653, the same is applied for the salaries of one year later. While for the year 1998, salaries are indexed with 6,395, to continue with the year 1999, where the coefficient is 5,190 and so on until 2022. For the last two years, that is, for 2023 and 2024, the indexation formula is not applied, but the salaries referred to as they are.

The revaluation of salaries, on the basis of which the contributions were 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.

To make it simpler, someone who worked in metallurgy, the salary for the purpose of pension calculation will not be 3392 ALL, but 41 575 ALL (3392 ALL X 12,257). Or someone who worked or was engaged in trade and had a salary of 2,740 ALL per month, the estimable basis for pension effect this year will be 33,584 ALL.

There are over 20,000 people who will reach retirement age this year and who will benefit from the revaluation scheme.

Remember that the pension calculation formula determines a basic pension and the supplement. The basic pension is ALL 9327, while the supplement based on the pension calculation formula is 1% for each year of insurance, multiplied by the average assessable base, which the insured persons have reached through paid contributions.

In the draft decision drawn up by the Institute of Social Insurance, a ceiling for re-evaluated salaries is also determined. This means that after indexation they cannot be higher than three times the minimum wage or the maximum wage.

"After the application of the 2022 index, the estimated base for the purpose of calculating the initial monthly amount of pensions that will be assigned with the right date of birth from July 1, 2024, cannot be higher than: three times the minimum wage at the national level determined by the decision of the Council of Ministers, for the salaries of the period from 1994 to 31.12.2001; the maximum salary in the country determined according to the criteria of article no. 10 of the law no. 7703, dated 1.5.1993 "On Social Security in the Republic of Albania", amended, for salaries from 2002 onwards", says the draft.

Pensions, the new salary revaluation coefficients are disclosed. How many people

Pensions, the new salary revaluation coefficients are disclosed. How many people

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