Social Security Programs Throughout the World: Europe, 2012

 

Albania

Exchange rate: US$1.00 = 105.37 leks.

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1947.

Current law: 1993 (social insurance).

Type of program: Social insurance system.

Coverage

Employed and self-employed persons.

Source of Funds

Insured person: 8.8% of covered monthly earnings.

The minimum earnings used to calculate contributions are the legal monthly minimum wage.

The maximum earnings used to calculate contributions are five times the legal monthly minimum wage.

The legal monthly minimum wage is 17,540 leks.

Self-employed person: 21.6% of the legal monthly minimum wage.

The legal monthly minimum wage is 17,540 leks.

Employer: 12.8% of covered monthly payroll.

The minimum earnings used to calculate contributions are the legal monthly minimum wage.

The maximum earnings used to calculate contributions are five times the legal monthly minimum wage.

The legal monthly minimum wage is 17,540 leks.

Government: Any deficit; pays contributions for persons in compulsory military service; covers the costs of the special state pensions for certain persons; contributes as an employer.

Qualifying Conditions

Old-age pension: Age 65 (men) or age 60 (women) with at least 35 years of contributions; age 50 with at least 30 years of contributions for a mother with six or more children older than age 8.

Partial pension: Age 65 (men) or age 60 (women) with 15 to 35 years of contributions.

Early pension: Age 62 (men) or age 57 (women) with at least 35 years of contributions.

Deferred pension: The pension may be deferred.

Disability pension: Paid for a total disability (blind, severely disabled, or incapable of any work) or partial disability (incapable of usual work but capable of work under special conditions) with coverage in at least 50% of the difference in years between the insured's age and age 20.

Reduced disability pension: A reduced pension is paid if the insured has a total disability but does not satisfy the coverage conditions for the full disability pension.

The degree of disability is assessed by the Medical Experts Committee.

Constant-attendance supplement: Paid if the insured requires the constant attendance of others to perform daily functions.

Child's supplement: Paid for each dependent child up to age 18 (25 if a student or disabled).

The disability pension is replaced by the old-age pension at the normal retirement age if the amount of the old-age pension is greater.

Survivor pension: The deceased was an old-age or disability pensioner, was insured at the time of death, or had previous coverage not more than one year before death.

Eligible survivors include a surviving spouse caring for a dependent child younger than age 8; a spouse with a disability; a spouse aged 50 or older (widow) or aged 60 or older (widower); dependent orphans younger than age 18 (age 25 if a student, no limit if disabled from childhood); dependent parents and grandparents aged 65 or older who lived with the deceased for the last 12 months; and dependent grandchildren.

The survivor pension for a spouse ceases on remarriage.

Old-Age Benefits

Old-age pension: The monthly pension consists of a flat-rate monthly amount of 11,117 leks for urban workers (7,468 leks for rural workers) and an earnings-related amount of 1% of the insured's average covered earnings used to calculate contributions for each year of coverage.

The maximum monthly pension is 22,234 leks for urban workers (11,117 for rural workers) or 75% of the insured's average net earnings in three of the last 10 years of employment, whichever is less.

Partial pension: A percentage of the full pension is paid, according to the number of years of contributions.

Early pension: The full pension is reduced by 0.6% for each month it is awarded before the normal retirement age.

Deferred pension: The pension is increased by 0.34% for each month of deferral after the normal retirement age.

Benefit adjustment: The Council of Ministers adjusts the flat-rate pension annually according to average paid contributions.

Permanent Disability Benefits

Disability pension: The monthly pension consists of a flat-rate monthly amount of 11,117 leks for urban workers (7,468 leks for rural workers) and an earnings-related amount of 1% of the insured's average covered earnings used to calculate contributions for each year of coverage.

The maximum monthly pension is 22,234 leks for urban workers (11,117 leks for rural workers) or 80% of the insured's last average net earnings, whichever is less.

Reduced disability pension: A percentage of the full disability pension is paid based on the difference between the actual years of coverage and those required for the full disability pension.

Partial disability pension: 50% of the full disability pension is paid.

Constant-attendance supplement: A monthly supplement is paid.

Child's supplement: 5% of the flat-rate pension amount (11,117 leks for urban workers; 7,468 leks for rural workers) is paid for each child, up to 30% of the flat-rate pension amount.

Benefit adjustment: Benefits are adjusted annually according to changes in the old-age pension.

Survivor Benefits

Survivor pension: 50% of the deceased's old-age pension is paid to a spouse.

Orphan's pension: 25% of the deceased's old-age pension is paid to each orphan; 50% for a full orphan if there are no other eligible dependents.

Other eligible survivors: 25% of the deceased's old-age pension is paid to each dependent.

All survivor benefits combined must not exceed 100% of the deceased's old-age pension; 50% if the surviving spouse is working or receiving a pension in his or her own right.

Administrative Organization

Ministry of Finance (http://www.minfin.gov.al) and a tripartite Administrative Council provide general supervision.

Social Insurance Institute (http://www.issh.gov.al) administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1947.

Current laws: 1993 (social insurance) and 1994 (health insurance).

Type of program: Social insurance (cash benefits) and universal (medical benefits) system.

Coverage

Cash sickness benefits: Employed persons.

Voluntary coverage is available.

Cash maternity benefits: Employed persons, self-employed persons, and employers.

Medical benefits: All persons residing in Albania.

Source of Funds

Insured person: 0.1% of covered earnings (sickness), 0.6% of covered earnings (maternity), and 1.7% of covered earnings (medical).

The minimum earnings used to calculate contributions are the legal monthly minimum wage.

The maximum earnings used to calculate contributions are five times the legal monthly minimum wage.

The legal monthly minimum wage is 17,540 leks.

Self-employed person: 1.4% of the legal monthly minimum wage (maternity), 7% of the legal monthly minimum wage for self-employed persons in agriculture (medical).

Employer: 0.2% of covered payroll (sickness), 0.8% of covered payroll (maternity), and 1.7% of covered payroll (medical).

The minimum earnings used to calculate contributions are the legal monthly minimum wage.

The maximum earnings used to calculate contributions are five times the legal monthly minimum wage.

The legal monthly minimum wage is 17,540 leks.

Government: The total cost of medical benefits for persons not currently in the labor force.

Qualifying Conditions

Cash sickness benefits: Must be currently insured.

Cash maternity benefits: The insured must have at least 12 months of contributions.

Medical benefits: There is no minimum qualifying period.

Sickness and Maternity Benefits

Sickness benefit: 70% of the insured's average daily wage in the last calendar year is paid if the insured has less than 10 years of contributions; 80% with 10 years or more; 50% during hospitalization if there are no dependents. The benefit is paid from the 15th day of medical certification (the first 14 days are paid by the employer) for up to six months; may be extended up to three months if the Medical Experts Committee certifies the likelihood of recovery in that period.

Compensation is paid for a loss of income from a change of employment due to health reasons.

Maternity benefit: Up to 365 days of maternity leave is paid for at least 35 days before and 42 days after the expected date of childbirth (for multiple births, up to 390 days for at least 60 days before and 42 days after). The monthly benefit is 80% of the insured's average daily wage in the last calendar year for the period of leave before childbirth and for 150 days after; 50% for the remaining period. Benefits are also paid for the adoption of a child.

For employers and self-employed persons, the benefit is equal to the flat-rate monthly amount of the old-age pension.

A woman who must change employment because she is pregnant is paid for a loss in income.

The flat-rate monthly amount of the old-age pension is 11,117 leks for urban workers; 7,468 leks for rural workers.

Birth grant: A lump sum of 50% of the legal monthly minimum wage is paid to either insured parent with at least one year of contributions.

The legal monthly minimum wage is 17,540 leks.

Workers' Medical Benefits

All general medical services are free.

Cost sharing: The insured is reimbursed from 35% to 100% of the cost of various essential medication.

The Health Insurance Institute pays 90% and the insured pays 10% of the cost for some types of examinations.

There is no limit to duration.

Dependents' Medical Benefits

Medical benefits for dependents: All general medical services are free.

Cost sharing: The insured is reimbursed from 35% to 100% of the cost of various essential medication.

The Health Insurance Institute pays 90% and the insured pays 10% of the cost for some types of examinations.

Free benefits are provided for children up to age 12 months, persons with disabilities, WWII invalids and veterans, and persons diagnosed with certain serious illnesses.

There is no limit to duration.

Administrative Organization

Ministry of Finance (http://www.minfin.gov.al) and Ministry of Health Protection provide general supervision.

Social Insurance Institute (http://www.issh.gov.al) administers sickness and maternity benefits.

Health Insurance Institute (http://www.isksh.com.al) administers medical benefits.

Work Injury

Regulatory Framework

First law: 1947.

Current law: 1993 (social insurance).

Type of program: Social insurance system.

Coverage

Employed persons, apprentices, and vocational training students.

Exclusions: Self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 0.3% of payroll.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period. The incapacity for work is assessed by the Medical Experts Committee. Occupational diseases are defined by the Council of Ministers.

Temporary Disability Benefits

100% of the insured's average daily wage in the last three years is paid for up to 12 months.

Permanent Disability Benefits

Permanent disability benefit: For an assessed loss of working capacity of at least 67%, the benefit is 80% of the insured's average monthly earnings in the last three years but not less than the flat-rate monthly amount of the old-age pension.

The flat-rate monthly amount of the old-age pension is 11,117 leks for urban workers; 7,468 leks for rural workers.

Partial permanent disability: For an assessed loss of at least 33% of working capacity, the benefit is 50% to 80% of the insured's average monthly earnings in the last three years, depending on the degree of loss of working capacity.

Minor permanent disability: For an assessed loss of 10% to 33% of working capacity, a lump sum is paid according to a schedule in law. Material damages incurred by the insured person are compensated in full.

Workers' Medical Benefits

Compensation is available for medical care and the cost of rehabilitation.

Survivor Benefits

Survivor pension: The surviving spouse receives 50% of the deceased's old-age pension.

Eligible survivors include a surviving spouse caring for a dependent child younger than age 8, a spouse with a disability, or a spouse aged 50 or older (widow) or aged 60 or older (widower).

Orphan's pension: 25% of the deceased's old-age pension is paid for each dependent orphan younger than age 18 (age 25 if a student, no limit if disabled from childhood); 50% for a full orphan if there are no other eligible dependents.

Other eligible survivors: 25% of the deceased's old-age pension is paid for each dependent parent, grandparent aged 65 or older who lived with the deceased for the last 12 months, and dependent grandchildren.

All survivor benefits combined must not exceed 100% of the deceased's old-age pension.

Administrative Organization

Ministry of Finance (http://www.minfin.gov.al) and a tripartite Administrative Council provide general supervision.

Social Insurance Institute (http://www.issh.gov.al) administers the program.

Unemployment

Regulatory Framework

First law: 1947.

Current law: 1993 (social insurance).

Type of program: Social insurance system.

Coverage

Employed persons.

Exclusions: Self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 0.9% of payroll.

Government: None.

Qualifying Conditions

Unemployment benefit: The insured must have at least one year of contributions, not be receiving any other benefits (except for partial disability), be registered at an unemployment office, and be willing to undergo training.

Unemployment Benefits

A flat-rate benefit is paid for up to 12 months or for a total of 365 calendar days if the insured has temporary periods of employment. The benefit must be no less than the flat-rate monthly amount of the old-age pension.

The flat-rate monthly amount of the old-age pension is 11,117 leks for urban workers; 7,468 leks for rural workers.

Child's supplement: Each dependent child younger than age 18 (25 if a student or disabled) receives 5% of the unemployment benefit, up to 30%. The supplement is reduced by 50% if one parent is employed or receiving a pension.

Administrative Organization

Ministry of Labor, Social Affairs, and Equal Opportunities (http://www.mpcs.gov.al) provides general supervision.

National Employment Service administers benefits.

Social Insurance Institute (http://www.issh.gov.al) collects contributions.

Family Allowances

Regulatory Framework

First law: 1947.

Current law: 1993 (financial aid and social services).

Type of program: Social assistance system.

Coverage

Families residing in Albania.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Family allowances (social assistance): Must have low or inadequate income or a family member with a disability or who is blind.

Family Allowance Benefits

Family allowances (social assistance): Financial aid is provided.

Administrative Organization

Ministry of Labor, Social Affairs, and Equal Opportunities (http://www.mpcs.gov.al) provides general supervision.

State Social Service administers the program at district and local levels.