€122 million more for wages and pensions in the 2026 budget

The proposed changes include €102 million for wages, covering the 13th salary and retroactive compensation for years of service, as well as €20 million for basic pensions. The International Monetary Fund has warned of a growing deficit and the impact ongoing spending could have on public finances. The Government of Kosovo has requested a revision of the 2026 budget allocations, proposing an additional €122 million for wage and pension spending. The draft law amending and supplementing the Law on Budget Allocations has passed its first reading and is expected to be discussed at second reading in the Assembly of Kosovo on Thursday, about two months before the end of the fiscal year. Of the proposed amount, €102 million would be placed in the “Wages and Allowances” category of the “Contingencies” subprogram at the Ministry of Finance. The funds are earmarked for the 13th salary and retroactive compensation for years of service, in line with Constitutional Court Judgment KO79/23.