Skip to main content
Working in EuropePension rights, UnemploymentAlbania

Social Security


Social Insurance System in Albania

Social protection system in Albania had to undergo greating the transition period in 1990s as a result of growing social problems such as unemployment and poverty. The establishment of the Ministry of Labour (MoL) in 1992 brought about social protection reform including remodelling of the existing social insurance system, establishment of social assistance, introduction of unemployment benefits and employment services as well as establishment of a health care insurance system. Along with that there were established such institutions as the Social Insurance Institute (SII, 1992), the Health Insurance Institute (HII), the Labour Inspectorate (1995) and the National Employment Service (1995).

After 2000, the social protection approach started to change from social assistance to social insurance mainly based on (a) a contributory social insurance scheme; and (b) tax-funded social assistance and labour market programs. In 2006, the Albanian Government ratified the ILO Social Security (Minimum Standards) Convention, 1952 (No. 102) with respect to old age, death, sickness, maternity, disability, employment in-jury and occupational diseases, unemployment and health care branches.​

Social security benefits in Albania are provided by the Social Insurance Institute (SII), an independent public institution, whose organization and operation is regulated by Administrative Council and Director General. Administrative Council of SII consists of 12 members, of which: 6 members are representatives of the Government and 6 members are representatives of trade unions and employers. All social security contributions and benefits are tax exempt.

Health care in Albania has gone through numerous reforms since 1990-s and resulted in the implementation of a mandatory health insurance coverage.

There is no specific family benefit, or program on child welfare in Albania. There are some supplementary compensation to pensions and unemployment benefits for dependent children /family members, financed from the state budget.

The pension system of Albania has seen major changes during the period from 1991-2013. Among those changes are the inclusion of such social categories as private em-ployment and self-employment under the pension system, approval of the legislation on the occupational pension schemes, linking social protection to contributions rather than employment status and establishing voluntary pillar of the pension system.

Only a small portion of the unemployed is eligible for unemployment insurance benefits because that the current system provides benefits only for those who have paid social contributions during their last year of employment. The high level of eco-nomic activities in the informal sector means that the portion of benefits is small.

Social assistance in Albania includes three cash social assistance programs and a program of social care services. The cash social assistance programs are:​

-a targeted poverty benefit in cash (as called in Albanian ndihma ekonomike or economic aid);

-a regular monthly allowance to those with disabilities that are congenital or ac-quired while children or students; and

-price compensation paid to pensioners and their families. These programs are delivered by the social assistance sec-tions in municipalities and communes and monitored and evaluated by the State Social Services at the national level.

Institute of Social Insurance

Health Insurance- Health Information Portal

Public Health Insurance Institution- National Health Insurance Fund

Private Health Insurance Institutions

Private Insurance Company( Health, Life, Car ,Property)Sigal Uniqa Insurance Company


Eurosig Insurance Company

Albsig Insurance Company

SICRED Insurance Company

Voluntary Pension Fund