How the pension is calculated

Formula: base sum + flat yearly increment

Neni 32.2 builds the pension from a base sum: the ratio of your own actual years of insurance to the years required under Neni 92 (the table on the pension age page), multiplied by the social pension. On top of that base, Neni 32.3 adds 1,0 % for every year of insurance service as a flat yearly increment. Anyone who defers retirement past the Neni 92 age while continuing to contribute also earns a further 0,5 % for every month deferred (Neni 33).

The social pension — the missing figure

Neni 5/1 defines the social pension as equal to the minimum income secured by the partial old-age pension (Neni 95) with 15 insured years at the minimum wage, calculated as of 31.12.2014 — then carried forward every year by Neni 61's indexation coefficient. That means today's figure requires THREE steps: the 31.12.2014 minimum wage, the Neni 95 formula's own result at that date, and every indexation coefficient from 2015 to today. This site could not trace any of those three steps to an officially published figure — secondary sources (news outlets, accounting-firm guides) report different amounts depending on category and pension type, and we do not treat those as authority for a statutory figure. So this page cannot state either the formula's base sum or a worked example in Lekë.

The pension floor — the same missing figure

Neni 32.4 promises that the total pension may not be lower than the social pension — so the law does have a real floor. But the floor and the base sum depend on the same unpublished figure, so the floor itself cannot be stated in Lekë today either.

The maximum pension

Nenet 97 and 98 name a "maximum old-age pension" three times, as a cap on other transitional retirement routes — so the law does recognize the concept of a ceiling. But no provision this site can cite states where that maximum is itself defined, or what its current figure is. This does NOT mean Albania has no maximum pension — only that this site did not locate the provision that states it.

Revaluation and indexation

The individually assessed annual base is revalued every year (from 2015 on) by a coefficient measuring the ratio of the latest year's average contribution to the year before it — but the coefficient itself is fixed by a Council of Ministers decision, not published as a historical table; this site found no published series of past coefficients.

Pensions already in payment also carry a real annual indexation obligation (Neni 61) against price changes — but the basket of goods, the calculation method and the indexation date are all left to a Council of Ministers decision this site could not locate. So the obligation to index is real; the mechanism that carries it out is not traceable from this site today.

Why there is no pension calculator here

A full calculation needs the social pension (an unpublished figure) and your own career-long average assessed base — data neither this site nor a reader could self-report accurately. So this page explains the METHOD, not an amount.