The bonus payment and promises to increase pensions may have influenced the outcome of the parliamentary elections in favor of the majority, but it seems unlikely that the latter is approaching a sustainable solution for reforming the social contribution scheme, which is facing the risk of collapse.
In the small yard of her home in Vaqar, Lirije Sina, 64, spends hours tending to several rows of vegetables that she has planted to save from her 9,900 lek pension.
"What should I do with that money first?" she asks, listing her medications, bills, and food, while revealing that she has recently started having problems with her blood pressure.
Her husband, 72, suffers from asthma and often needs medication that is not covered by the reimbursement scheme, another burden for the couple who live solely on their pensions. They say they can only afford a simple diet, as meat and fish are out of their reach, while the garden remains their only source of fresh produce.
Despite the difficulties, Sanija voted for the ruling Socialist Party in the parliamentary elections on May 11, lured by the distribution of bonuses to pensioners and promises of pension increases in the near future.
"We also received it in the spring and now we will receive a bonus again," said Lirija, adding that these payments are a great help for pensioners. "I don't have to hide it, I voted for these people," she added.
In November 2024, just 6 months before the parliamentary elections, the government announced the distribution of two bonuses worth between 10,000 and 15,000 lek to around 730,000 pensioners, at a cost of 163 million euros – a decision that critics describe as politically motivated and geared towards one of the largest voter blocs in the country.
“It is an electoral bonus,” says economist Selami Xhepa. “There is no question that the use of this financial instrument was intended for political use,” he added.
Premto Gogo, head of KRIIK Albania, an organization that has been monitoring the electoral process for years, says that the distribution of the bonus for pensioners was part of a series of decisions made at the end of 2024, the effects of which were felt during the election campaign.
“They were direct electoral decisions, they had a significant impact and definitely influenced the vote,” Gogo said. “But we cannot measure how much they influenced, because there are many mechanisms that have influenced and shifted the weight of the vote,” he added.
Election fraud
In the parliamentary elections of May 11, the Socialist Party managed to receive around 730 thousand votes, securing a fourth term at the head of the country and an absolute lead with 83 seats in parliament. Various analyses have suggested that among the categories that voted the most for this party were pensioners, raising the question of whether some were also lured by the bonus they received a few days before the elections.
Qani Shino, a former miner who has been retired since 2014, but who has been protesting for years about the status of miners, considers the spring bonus as a ploy to deceive the elderly before the elections.
"It was a bonus scam to get votes before the elections, and it definitely influenced the vote, because he did it for votes," says Shino, who has joined the Joint Movement.
Even Klodian Muço, an economics expert and professor at the Catholic University "Our Lady of Good Counsel", sees promises in electoral campaigns, and especially bonuses, as instruments that aim to influence the electoral outcome.
He recalls that the word bonus, from Latin, means to give a reward for good performance, and raises questions about what achievement the retirees were being rewarded for.
“The bonus is an electoral promise,” he said. “In my opinion, the only 'performance' of pensioners in May was to be more sympathetic, or to view the ruling party with more optimism,” Muço added.
Article 91 of the Electoral Code, amended by political agreement in 2020, provides that "four months before the election date until the formation of the new government, the proposal, approval or issuance of legal or sub-legal acts is prohibited, which provide for the granting of benefits to certain categories of the population, such as acts that provide for the increase of salaries, pensions, economic or social support, the reduction or abolition of taxes, the establishment of fiscal amnesties, the privatization or granting of assets, rewards - except when the initiative is conditioned by a state of natural disaster."
According to the legal provision, the standstill periods before the 2025 parliamentary elections began on January 11, but election experts say the CEC should not have limited itself to a narrow interpretation of the law.
"We have requested that the law be implemented in a meaningful way, which means taking into account both the decision and its effect," said Premto Gogo.
The same position is shared by Gerta Meta, head of the Association for Democratic Culture.
“As a tactic and as a choice by the government, it definitely has an impact on the elections,” Meta said. “Why don’t you give this bonus a little before or after the elections?” she asked.
Electoral candy
Albania's pension scheme has been struggling for years due to labor migration, demographic changes and low contribution rates. In these conditions, experts warn that any intervention must be well thought out and not used for electoral gain.
Selami Xhepa recalls that the bonus scheme for pensioners has traditionally been an end-of-year bonus, to ease the burden of the holidays. But, according to him, the use of this subsidy on the eve of the campaign has directly affected the election result.
"A candy, when given at a time when it still leaves a sweet taste in your mouth, certainly has an effect," said Xhepa.
He also expresses little optimism about the promised increase after the elections, emphasizing that the cost of living has increased significantly, which makes it negligible even if the promise is fulfilled.
"The countries in the region already have a pension of 450 euros; our government promises to make it 400 euros in four years," he said.
Albanian pensioners continue to be among the worst paid in the region. At the end of 2024, the average pension in Albania was around 196 euros, while in Montenegro it is 450 euros; in Bosnia 340 euros; in North Macedonia 405 euros; and in Serbia 440 euros. Kosovo has also increased support for this category, bringing the social pension to 120 euros and the average pension to 287 euros.
Eduart Gjokutaj, director of ALTAX, a center that also monitors political party promises, believes that the government's budget policies remain politically motivated.
"The budget itself does not make long-term decisions, but short-term ones and prioritizes the vote," he said, adding that this is not the first time.
Referring to ALTAX's monitoring, Gjokutaj says that promises for pensions have never been kept, from the Berisha government to Prime Minister Rama, who has been in power since 2013. According to the organization's data, from 2009 to 2021, pensions have increased by only 36%, while the promises of political parties have been almost three times greater.
“More is promised than is possible, and more than the state budget can afford,” he said. “Of course, this bonus and the promise of growth alleviates some of the pessimism in this category.”
Economist Klodian Muço also believes that political parties make electoral promises to pensioners - a tactic that, according to him, has often proven successful.
"I believe that pensioners really believe in promises, and the government's promise influences them," he concluded.
Pension policy
Five years ago, when he retired, Shefqet Muça received a pension of 28 thousand lek for 34 years of work as a machinist on the Albanian railway and 3 years of military service. Together with the compensation and increases received over the years, he currently receives 34 thousand lek per month. His wife was not “so lucky”, being rewarded with a pension of only 13 thousand lek for 32 years of work. With this income, Muça says they manage to live a modest life, but far from meeting their needs.
"If we get sick, we don't know where to turn," he says.
Increasing pensions is among the most repeated promises of political parties and is repeated in every election campaign. The main promise of the Socialists in the May 11 election campaign was that the average pension would reach 400 euros and the minimum to 200 euros – a commitment that is being reiterated again these days.
Unlike during the campaign, when promises were more vague, this time the prime minister has been careful to specify that the objective will be achieved in 2029 and that the total cost will be 1.7 billion euros. He has stated that this year alone pensions will take up the "lion's share" of the budget, with 100 million euros for increases and 16 million euros for indexation.
Shefqet Muça remains skeptical about the pension increase and the new formula proposed by the government, but in conditions where prices are increasing every day, the retired former train driver says he welcomes any increase.
“It's not a big deal, but it's something,” he says, adding that the promises are repeated because “they want the vote.” “Life is very expensive for us pensioners,” Muça added.
On the poverty line
Former miner Qani Shtino lives with his wife, who, after 42 years of contribution to the health system, benefits from a pension of 30 thousand lek. He himself suffers from a number of diseases, such as diabetes, hypertension and arrhythmia, and relies on reimbursed medications to cure himself, although he expresses doubts about the quality of the drugs.
“Where will my pension come from to eat, pay the bills and even buy good medicine?” he says discontentedly. “Only when the girls come do they take us out for a coffee,” adds Shtino, emphasizing that “for a parent to expect alms from a child is a crime.”
Like Qaniu, hundreds of thousands of pensioners in Albania live on the poverty line. The World Bank has calculated that the poverty line is $5.50 (about 457 lekë) per day, which on average amounts to $165 (about 13,700 lekë) per month – an amount that in Albania equates to a large portion of pensions.
As a result of high informality over the last three decades, many citizens who retire today do not have full years of work and receive a partial pension. In 2024 alone, 29,136 new beneficiaries were added to the pension scheme, but the average pension for this category remained low, only 17,013 lek per month.
Due to the rapid aging of the population and demographic developments, the country's pension scheme is struggling to survive. In the 1990s, there were four contributors to one beneficiary; currently, the ratio has fallen to 1.11 contributors to one beneficiary, indicating that the number of pensioners is growing much faster than the number of working years. According to experts, this makes the scheme unsustainable in the long term, despite possible interventions.
“By 2030, if we keep going at this pace, we will reach a ratio of one contributor to one beneficiary,” says Klodian Muço. “This means that the scheme is headed for failure,” he adds./BIRN/
