Albania

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Situation and Priorities

Social protection situation
  • The social protection expenditure is low. In 2017, Albania spent only 9.3% of GDP on social protection (not including health), less than half of the EU average. 
  • Old-age pensions has the widest beneficiary coverage and most important impact in poverty reduction. Despite the pension reform, the Fund has been in deficit at 2% of GDP. 
  • For other cash benefits, typically disability and employment injury benefits, a large number of workers do not qualify. Workers in informal and non-standard forms of employment are not adequately covered.
  • The economic assistance programme exhibits a sharp decline in the number of beneficiaries and expenditure to 0.2% of GDP in 2019
     
COVID-19 and other crises

In response to the COVID-19 pandemic, Albania has introduced a series of measures to alleviate the negative impacts of the crisis. The total stimulus package in 2020 was at least 2.9 percent of GDP. Social protection measures constituted one of the crucial part of the integrated responses.
Key interventions include:

  • The minimum wage subsidy and a one-off financial assistance for workers affected by the pandemic;
  • Pension indexation by 2.3 percent;
  • Double the amount of unemployment benefit and economic assistance;
  • One-off financial assistance to low income families not receiving economic assistance;
  • Deferral of tax and other payments (not including social security contributions);
  • Provision of loans and guarantees for enterprises;
  • Provision of in-kind benefits and other services.

In response to the rapid rise in food and energy prices in 2022, the government implemented emergency support for pensioners receiving low pensions, social assistance beneficiary families, persons with disabilities, as well as subsidies for energy prices, under two Social Resistance Packages. In this context, the government is considering new rules for regular and automatic indexation of the social assistance benefit.

Government and social partner priorities

The new government, which has been in place since October 2021, is working on a new National Strategy on Social Protection. Based on the ILO review, critical issues in social protection in Albania include: 

  • Implementing  ILO Social Security Minimum Standards Convention No. 102, which Albania ratified in 2006. 
  • Extending the coverage of the contributory social insurance to informal and atypical workers. 
  • Providing effective social assistance in ensuring basic income security for all persons in need, in the context of decentralization.
  • Exploring possible fiscal scenarios to create fiscal space for social protection.
  • Building a consensus based on a national dialogue by all stakeholders.

Results

Funding gaps / Support the ILO

In-depth analysis of the reform options with costing implications (in particular, the development of long-term care services, reform of the social assistance system and disability benefits)

Establish rules to secure fiscal space for social protection in the budgeting process

Conduct national dialogue to discuss the reform priorities

Conduct trainings to improve institutional capacity of central and local government in extending the coverage and effectively administering the social protection systems

Conduct information campaign to raise awareness on social protection

Support the ILO

News and Events

ILO Experts

IMG
Zhulieta Harasani
National Coordinator