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Ekonomia

The ISSH instruction is clarified, here is how the indexation of pensions will be done based on the value of contributions, the calculations for each category

The ISSH instruction is clarified, here is how the indexation of pensions will

The Social Insurance Institute has published the instruction on the basis of which the indexation of pensions will be done, according to the contributions paid over the years. On April 1 of this year, the decision came into force, which indexes pensions by 2.7 percent throughout the country. At one point in that decision it is clarified that there will be an indexation based on the basic salary that retirees received at the time they were employed, as the indexation of salary increases the value of contributions and consequently the value of the pension. Therefore, the instruction published in the Official Gazette determines the coefficient of contributions starting from the employees before '93 until 2021. “The Social Insurance Institute instructs: For the purpose of calculating the initial amount of pensions with the starting date after the entry into force of this decision, indexing coefficients of the assessed base approved by decision of the Council of Ministers no. 571, dated 3.10.2018, "On wage indexation coefficients for the purpose of calculating the estimated base for the initial calculation of pensions". The coefficients are applied for the re-evaluation of the estimated base achieved until 2021, for the purpose of calculating the initial monthly amount of the pension that will be determined on the starting date after the entry into force of this decision and onwards ”, instructs ISSH. The instruction reflects the salary coefficient, through which the contributions will be calculated each year. For this reason, it is emphasized here that the citizens who have received the pension status until the end of March 2021 will calculate the pension increase with the same coefficient, while from April onwards they will calculate with another coefficient. “Wage indexation coefficients, determined by the decision of the Council of Ministers no. 571, dated 3.10.2018, "On salary indexation coefficients, for the purpose of calculating the estimated base for the initial calculation of pensions", the decision of the Council of Ministers no. 180, dated 4.4.2019, "On salary indexation coefficients, for the purpose of calculating the estimated base for the initial calculation of pensions" and the decision of the Council of Ministers no. 262, dated 30.3.2020, "On the approval of the indexation coefficient of the estimated base of 2018, for the calculation of pensions", remain in force and are used for indexation of salaries on which contributions have been paid only for pensions with starting date until on 31.3.2021 ”, the instruction explains. date 3.10.2018, "On wage indexation coefficients, for the purpose of calculating the estimated base for the initial calculation of pensions", the decision of the Council of Ministers no. 180, dated 4.4.2019, "On salary indexation coefficients, for the purpose of calculating the estimated base for the initial calculation of pensions" and the decision of the Council of Ministers no. 262, dated 30.3.2020, "On the approval of the indexation coefficient of the estimated base of 2018, for the calculation of pensions", remain in force and are used for indexation of salaries on which contributions have been paid only for pensions with starting date until on 31.3.2021 ”, the instruction explains. date 3.10.2018, "On wage indexation coefficients, for the purpose of calculating the estimated base for the initial calculation of pensions", the decision of the Council of Ministers no. 180, dated 4.4.2019, "On wage indexation coefficients, for the purpose of calculating the estimated base for the initial calculation of pensions" and the decision of the Council of Ministers no. 262, dated 30.3.2020, "On the approval of the indexation coefficient of the estimated base of 2018, for the calculation of pensions", remain in force and are used for indexation of salaries on which contributions have been paid only for pensions with starting date until on 31.3.2021 ”, the instruction explains. the decision of the Council of Ministers no. 180, dated 4.4.2019, "On wage indexation coefficients, for the purpose of calculating the estimated base for the initial calculation of pensions" and the decision of the Council of Ministers no. 262, dated 30.3.2020, "On the approval of the indexation coefficient of the estimated base of 2018, for the calculation of pensions", remain in force and are used for indexation of salaries on which contributions have been paid only for pensions with starting date until on 31.3.2021 ”, the instruction explains. the decision of the Council of Ministers no. 180, dated 4.4.2019, "On wage indexation coefficients, for the purpose of calculating the estimated base for the initial calculation of pensions" and the decision of the Council of Ministers no. 262, dated 30.3.2020, "On the approval of the indexation coefficient of the estimated base of 2018, for the calculation of pensions", remain in force and are used for indexation of salaries on which contributions have been paid only for pensions with starting date until on 31.3.2021 ”, the instruction explains.

Indexing for young retirees

As we pointed out above, those citizens who have retired after April 1 will calculate the indexation with another coefficient. Specifically, the calculation for the value of pensions received from April 1 onwards should not be more than three times the current minimum wage in the country and not higher than the level of the maximum wage in force. “The estimated basis for the effect of calculating the initial monthly amount of the pension that will be set on the starting date after the entry into force of this decision, can not be higher than; three times the national minimum wage, of ALL 30,000, determined by a decision of the Council of Ministers for salaries for the period from 1994 to 31.12.2001; Maximum salary at the national level of 130 312 ALL, determined according to the criteria of the last paragraph of article no. 10, of law no. 7703, dated 1.5. 1993, "On social insurance in the Republic of Albania", as amended, for salaries from 2002 onwards. The indexation of salaries with the coefficients reflected above, for the effect of the initial calculation of pensions, will be done only for pensions with the date of birth of the right from 1.4.2021 ", the instruction determines", explains ISSH. So, ISSH states that the calculation of pensions will be done taking into account the law on contributions adopted in 1993, in calculation with the indexation of salary according to the coefficients explained above. “Pursuant to decision no. 196, dated 31.3.2021, of the Council of Ministers, the estimated base of 2019 will be indexed with the index 2.8%, calculated according to the criteria defined in the law dated 1.5.1993, "On social insurance in the Republic of Albania" " , the instruction states. "On social insurance in the Republic of Albania", as amended, for salaries from 2002 onwards. The indexation of salaries with the coefficients reflected above, for the effect of the initial calculation of pensions, will be done only for pensions with the date of birth of the right from 1.4.2021 ", the instruction determines", explains ISSH. So, ISSH states that the calculation of pensions will be done taking into account the law on contributions adopted in 1993, in calculation with the indexation of salary according to the coefficients explained above. “Pursuant to decision no. 196, dated 31.3.2021, of the Council of Ministers, the estimated base of 2019 will be indexed with the index 2.8%, calculated according to the criteria defined in the law dated 1.5.1993, "On social insurance in the Republic of Albania" " , the instruction states. "On social insurance in the Republic of Albania", as amended, for salaries from 2002 onwards. The indexation of salaries with the coefficients reflected above, for the effect of the initial calculation of pensions, will be done only for pensions with the date of birth of the right from 1.4.2021 ", the instruction determines", explains ISSH. So, ISSH states that the calculation of pensions will be done taking into account the law on contributions adopted in 1993, in calculation with the indexation of salary according to the coefficients explained above. “Pursuant to decision no. 196, dated 31.3.2021, of the Council of Ministers, the estimated base of 2019 will be indexed with the index 2.8%, calculated according to the criteria defined in the law dated 1.5.1993, "On social insurance in the Republic of Albania" " , the instruction states. for salaries from 2002 onwards. The indexation of salaries with the coefficients reflected above, for the effect of the initial calculation of pensions, will be done only for pensions with the date of birth of the right from 1.4.2021 ", the instruction determines", explains ISSH. So, ISSH states that the calculation of pensions will be done taking into account the law on contributions adopted in 1993, in calculation with the indexation of salary according to the coefficients explained above. “Pursuant to decision no. 196, dated 31.3.2021, of the Council of Ministers, the estimated base of 2019 will be indexed with the index 2.8%, calculated according to the criteria defined in the law dated 1.5.1993, "On social insurance in the Republic of Albania" " , the instruction states. for salaries from 2002 onwards. The indexation of salaries with the coefficients reflected above, for the effect of the initial calculation of pensions, will be done only for pensions with the date of birth of the right from 1.4.2021 ", the instruction determines", explains ISSH. So, ISSH states that the calculation of pensions will be done taking into account the law on contributions adopted in 1993, in calculation with the indexation of salary according to the coefficients explained above. “Pursuant to decision no. 196, dated 31.3.2021, of the Council of Ministers, the estimated base of 2019 will be indexed with the index 2.8%, calculated according to the criteria defined in the law dated 1.5.1993, "On social insurance in the Republic of Albania" " , the instruction states. for the effect of the initial calculation of pensions, it will be done only for pensions with the date of birth of the right from 1.4.2021 ", the instruction determines", explains ISSH. So, ISSH states that the calculation of pensions will be done taking into account the law on contributions adopted in 1993, in calculation with the indexation of salary according to the coefficients explained above. “Pursuant to decision no. 196, dated 31.3.2021, of the Council of Ministers, the estimated base of 2019 will be indexed with the index 2.8%, calculated according to the criteria defined in the law dated 1.5.1993, "On social insurance in the Republic of Albania" " , the instruction states. for the effect of the initial calculation of pensions, it will be done only for pensions with the date of birth of the right from 1.4.2021 ", the instruction determines", explains ISSH. So, ISSH states that the calculation of pensions will be done taking into account the law on contributions adopted in 1993, in calculation with the indexation of salary according to the coefficients explained above. “Pursuant to decision no. 196, dated 31.3.2021, of the Council of Ministers, the estimated base of 2019 will be indexed with the index 2.8%, calculated according to the criteria defined in the law dated 1.5.1993, "On social insurance in the Republic of Albania" " , the instruction states. ISSH states that the calculation of pensions will be done taking into account the law on contributions adopted in 1993, in calculation with the indexation of salary according to the coefficients explained above. “Pursuant to decision no. 196, dated 31.3.2021, of the Council of Ministers, the estimated base of 2019 will be indexed with the index 2.8%, calculated according to the criteria defined in the law dated 1.5.1993, "On social insurance in the Republic of Albania" " , the instruction states. ISSH states that the calculation of pensions will be done taking into account the law on contributions adopted in 1993, in calculation with the indexation of salary according to the coefficients explained above. “Pursuant to decision no. 196, dated 31.3.2021, of the Council of Ministers, the estimated base of 2019 will be indexed with the index 2.8%, calculated according to the criteria defined in the law dated 1.5.1993, "On social insurance in the Republic of Albania" " , the instruction states.

Ja niveli i koeficientit për pagat e çdo viti

1.      Për pagat referuese deri më datë 31.12.1993 koeficienti është 9.562

2.      Për pagat e vitit 1994 koeficienti është 9.562

3.      Për pagat e vitit 1995 koeficienti është 7.696

4.      Për pagat e vitit 1996 koeficienti është 5.971

5.      Për pagat e vitit 1997 koeficienti është 5.971

6.      Për pagat e vitit 1998 koeficienti është 4.989

7.      Për pagat e vitit 1999 koeficienti është 4.049

8.      Për pagat e vitit 2000 koeficienti është 3.689

9.      Për pagat e vitit 2001 koeficienti është 3.155

10.  Për pagat e vitit 2002 koeficienti është 2.914

11.  Për pagat e vitit 2003 koeficienti është 2.608

12.  Për pagat e vitit 2004 koeficienti është 2.369

13.  Për pagat e vitit 2005 koeficienti është 2.151

14.  Për pagat e vitit 2006 koeficienti është 1.954

15.  Për pagat e vitit 2007 koeficienti është 1.867

16. For the salaries of 2008 the coefficient is 1,649

17. For 2009 salaries the coefficient is 1,517

18. For the salaries of 2010 the coefficient is 1,452

19. For the salaries of 2011 the coefficient is 1,397

20. For the salaries of 2012 the coefficient is 1,344

21. For the salaries of 2013 the coefficient is 1.288

22. For the salaries of 2014, the coefficient is 1,288

23. For the salaries of 2015 the coefficient is 1.113

24. For the salaries of 2016 the coefficient is 1.113

25. For the salaries of 2017 the coefficient is 1,092

26. For the salaries of 2018 the coefficient is 1,053

27. For the salaries of 2019 the coefficient is 1,028

28. For 2020 salaries the coefficient is 1,000

29. For the salaries of 2021 the coefficient is 1,000

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