Property
Malaj: 24 billion lek for pensions in 2027, April indexation, monthly baby bonus up to age 5
The finance minister presented the 2027 budget to Parliament's economy committee, where social protection receives 279.7 billion lek, about 30% of spending.
By ANN Newsroom · Newsroom
October 30, 2026, 11:40 · Updated 19:02 · 2 min read
In brief
- Pension policy in 2027 costs 24 billion lek; the April indexation has a fund of about 1.35 billion lek.
- The monthly bonus for pensioners doubles from Jan. 1, 2027, at an annual cost of 20 billion lek.
- The baby bonus becomes monthly support until age 5, rising for the second and third child.
Finance Minister Petrit Malaj on Friday presented the draft law on the 2027 budget to Parliament's Committee on Economy, Employment and Finance. The budget foresees more than 10 billion euros in public spending, and Malaj described support for the elderly as one of its main priorities.
Pensions: April indexation and a doubled bonus
According to the minister, pension policy in 2027 totals 24 billion lek, or about 250 million euros. Pension indexation is planned for April 2027, with a fund of about 1.35 billion lek. Including the earlier timing of the indexation, the cost to the budget comes to about 4 billion lek, or 40 million euros.
Malaj also said that from Jan. 1, 2027, the monthly bonus for pensioners will double, according to set categories, at a projected total cost of 20 billion lek a year.
Families and children
The social package includes doubling payments for children with disabilities and recognizing social and health insurance contributions for their caregivers. The baby bonus continues, but now as monthly support until age 5, with an amount that rises progressively for the first, second and third child. About 1.3 billion lek a year are planned for social services and affordable housing, while the personal income tax compensation of up to 48,000 lek for families with children under 18 continues.
In total, funding for social protection reaches 279.7 billion lek, about 30% of budget spending. Education is budgeted at 93.6 billion lek, including 500 million lek for the “After School” program until 5 p.m., and health at 87.2 billion lek, 6 billion more than the initial 2026 budget. Public investment in 2027 is estimated at 6.9% of GDP, or 201.5 billion lek.
