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The increase in the minimum wage as well as the average wage helped the pension scheme to improve somewhat in 2023. The increase in income from social security caused the deficit created as a result of higher expenses to decrease by 6.7 billion ALL.
The data published in the annual report of the Social Insurance Institute show that the deficit reached 14.6 billion ALL last year from 21.3 billion ALL in 2022.
" From 34,000 Lek it went to 40,000 Lek, this has its own effect. Doing this changes the normal salary that contributions will be added. The main thing is to fill the hole or increase income or cut expenses. Which have to do with increasing pensions ", says Kujtim Hoxha, pension expert.
The figures of the last 5 years show that this indicator is improving, which means that less money will come out of the state budget from taxes for the pension scheme to make payments to the current beneficiaries.
The increase in contributors by 25 thousand 623 has significantly influenced this improvement, reaching the highest number in the last 5 years at 826 thousand 928 individuals.
But on the other hand, as a result of the rapid rates of population aging, the number of beneficiaries in this scheme has also increased to 704,999 individuals, about 18,000 more than in 2022.
" This figure despite being 1 in 100 improved compared to 2022 is worrying. And with the concept that the social security scheme that the income pays the expenses is burdensome. "
Despite the slight improvement of some of the indicators, again the contributor/beneficiary ratio is worrying. In other words, 1.17 contributors to one beneficiary. An increase of only 0.01% compared to 2022, ranking Albania one of the countries with the lowest and alarming ratio./ A2CNN
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