Government Approves 2.7% Pension Indexation Effective July 1st and 300 Soft Loans for Public Administration

The Council of Ministers agreed a 2.7% indexation of pensions beginning July 1 and 300 soft loans for public administration personnel. The Council of Ministers adopted the decision on pension indexation for 2026, which will go into effect on July 1, and Delina Ibrahimaj, Minister of Economy and Innovation, announced it following the cabinet meeting.
According to the minister, this action will assist around 900,000 persons, including recipients of old-age pensions, special pensions, and maternity payments. She noted that the judgment reinstates the usual pension indexation mechanism.
The government also approved quotas for 300 soft loans at 0% interest for public administration personnel. The program establishes 70 quotas for State Police employees, 20 for Prison Police, 70 for teachers, 70 for doctors and nurses, and 70 for military personnel. The state budget will support the loan interest payments.
The meeting also adopted a number of legal measures in the context of the European integration process. Among them are a draft law on securities issuer transparency, which is fully aligned with European Union legislation, a draft law on late payments in commercial contractual obligations, which aims to strengthen fairness in financial relations between business entities, and a draft decision to increase transparency and improve state-owned enterprise management.
Furthermore, in collaboration with the Ministry of Education, a draft decision on student treatment was authorized, increasing scholarships for vocational education students and paving the path for the implementation of the government’s school food program.