The poverty risk threshold in Albania has more than doubled over the last six years, reaching approximately Lek 29,000 (Euro 315) per person per month in 2025.

However, while the income threshold that classifies an individual as at risk of poverty has risen rapidly, pensions and social assistance payments remain well below it.

According to the latest data from INSTAT, the poverty risk threshold for a single-person household reached Lek 349,565 for the year 2025 - or Lek 29,130 ??per month - up from Lek 14,232 per month in 2019.

Over six years, this threshold has increased by 104.7%, or approximately Lek 15,000 per month. This growth has accelerated particularly since 2022, when the poverty threshold stood at around Lek 18,800 per month, before reaching Lek 27,000 in 2024. However, the most concerning aspect of the data is the significant gap between this threshold and the income available to society's most vulnerable segments - specifically pensioners and families living on social assistance.

According to data from the Social Insurance Institute for 2025, the average monthly old-age pension in urban areas was approximately Lek 20,100 - about Lek 9,000 below the monthly at-risk-of-poverty threshold. In rural areas, where the average pension was around Lek 12,300 per month, this gap reached nearly Lek 16,800.

A pensioner living alone, whose sole source of income is the average pension, falls below the at-risk-of-poverty threshold - whether in an urban or a rural setting.

The situation is even more difficult for families receiving social assistance. According to INSTAT data, the average monthly payment for beneficiary families in 2025 was approximately Lek 7,253 - far below the Lek 29,130 ? threshold, which applies to a single individual.

For households with multiple members, the at-risk-of-poverty threshold is even higher, which further widens the gap relative to social support payments. The increase in the threshold highlights the significant gap between the relative standard of living and the benefits provided by social welfare schemes.

According to INSTAT’s methodology, the at-risk-of-poverty threshold is set at 60% of the median equivalized disposable income; it is a relative indicator that identifies individuals whose income is significantly lower than that of the rest of the population.

In 2025, the at-risk-of-poverty rate stood at 19%, compared to 19.2% the previous year - meaning the indicator remained virtually stagnant.

It is evident that pensions and economic assistance remain insufficient to lift recipients above the statistical poverty threshold when these serve as their sole source of income.