Pension revaluation 2024, here’s the news: expected increases of up to 130 euros from January

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By John

Pension revaluation 2024, find out what changes: increases of up to 130 euros are expected from January.

The Minister of Economy and Finance Giancarlo Giorgetti, in agreement with the Minister of Labor and Social Policies Marina Elvira Calderone, signed a decree which establishes, starting from 1 January 2024, a pension inflation adjustment equal to +5.4%. This measure was announced by the Mef.

“The increase, which will be applied following current regulations, is based on the percentage change in consumer price indices provided by Istat on 7 November 2023,” the ministry said.

Update on Pension Equalization

The pension equalization adjustment relating to 2022 inflation has been brought forward to 1 December 2023. This adjustment, equal to 0.8%, serves to compensate for the actual inflation of 2022, which was 8.1%. . The payment date was confirmed in the legislative decree accompanying the Meloni government’s maneuver.

Introduction to Pension Revaluation

The 2024 budget introduced changes to preserve the purchasing power of pensions and protect them from inflation. Among these, the bringing forward of the revaluation of pensions to December 2023.

Details of the 2023 Revaluation

The definitive Istat revaluation for 2023 was set at 8.1%, compared to the previous estimate of 7.3%. Consequently, an adjustment of 0.8% is recorded.

Example of 2023 Revaluation:

  • Pension of 1,000 euros
  • Provisional revaluation: 7.3% = +73 euros
  • Definitive revaluation: 8.1% = +81 euros
  • Adjustment: +8 euros
  • Total: 1,081 euros

Pension adjustment for 2024

The pension inflation adjustment for 2024 has been set at 5.4%, in line with data provided by Istat.

From January increases up to 130 euros

Since January, pensions have been a little heavier, although not in the same way for everyone. The government has set the inflation adjustment for next year at 5.4%. But by virtue of the band mechanism which guarantees full equalization only for allowances up to approximately 2,200 euros, the increases will be diversified, up to a maximum of 130 euros in the bands in which the majority of pensioners are concentrated.

The 2024 revaluation

Compared to inflation, with the rate set at 5.4%, in 2024 it will mean increases of up to 122 euros for checks up to four times the minimum, those for which the full recovery of the increase in prices is expected, i.e. those up to 2,272.96 euros gross. In fact, at the moment the minimum treatment for 2023 is set at 563.74 euros, but to this must be added the 0.8% difference between the inflation recovered in 2023 (7.3%) and the actual inflation recorded in 2022 (8 ,1%). Those with pension incomes between 2,272.96 euros (four times the minimum) and 2,841.2 euros per month (five times the minimum) get a recovery of 4.59% (85% of 5.4%) therefore a maximum of 130.41 euros. Those with incomes between five and six times the minimum (3,409.44 euros) are entitled to a recovery of 53% and therefore have an increase of 2.862% equal to a maximum of 97.57 euros. Those with pensions up to eight times the minimum (4,545.92 euros per month) are entitled to a recovery of 47% of inflation, therefore to 2.538 for an increase in the pay slip of a maximum of 115.37 euros.

The minimum pension is rising

From 2024 the minimum pension will rise to 614.77 euros for all pensioners. The INPS explains this in a circular illustrating the renewal of pensions for 2024. This amount is set by the exceptional revaluation of pensions up to the INPS minimum (which has risen to 598.61 euros) provided for by the 2023 budget law.

Therefore, INPS specifies, at the same time as the check revaluation operations, a further increase of 2.7% was recognised.

In the circular, INPS also indicates the updated amounts from the 2024 provisional revaluation, at the ISTAT rate of 5.4%:

  • 100% for pensions up to four times the minimum salary,
  • 85% for those between four and five times the minimum,
  • 53% between five and six times the minimum,
  • 47% between six and eight times the minimum,
  • 37% between eight and 10 times the minimum
  • and 22% above 10 times the minimum threshold.

Special and Minimum Adjustments

Pensions with an amount equal to or lower than the INPS minimum payment will have additional increases:

  • For 2023: +1.5% (over 75s will receive +6.4%)
  • For 2024: Increase based on inflation adjustment to 5.4%

Revaluation of Workers’ Contributions 2024

Employees will see an increase in social security contributions from January 1, 2024, based on indexation of 8.1%.