Since January 1, 2024, pensions have benefited from an increase thanks to the adjustment for inflation, equal to 5.4%. This increase was established by the Ministry of Economy and Finance (MEF) to adjust pension treatments to the cost of living. The 2024 Budget Law also introduced new rules for equalization, favoring lower pensions and reducing benefits for higher ones. In this guide, we’ll look at how the increase in pensions works in 2024, who benefits from it, and what impact it will have on retirees’ pockets
.
Table of Contents:
How Does the Increase in Pensions Work in 2024
The increase in pensions in 2024 is determined by the revaluation system, based on the inflation values recorded by ISTAT and indicated by the MEF. Every year, pensions are adjusted based on the increase in the cost of living, a process known as ‘equalization’
.
With the MEF Decree of 20 November 2023, published in the Official Gazette No. 279 of 29 November 2023, an adjustment of 5.4% of pensions was established, valid from 1 January 2024. This adjustment brought minimum pensions to 598.61 euros per month, as confirmed in the INPS Circular No. 1 of January 2,
2024.
The pension revaluation system follows a “band” mechanism, where the increase varies according to the amount of the pension: the higher the amount, the lower the percentage of increase. Since 2024, this scheme has been modified to favor lower pensions
.
Revaluation of Pensions: What Has Changed Since 2024
The 2024 Budget Law introduced a new mechanism for the revaluation of pensions, favoring medium-low checks and penalizing higher ones. The 100% revaluation is reserved for pensions up to 4 times the minimum treatment, equal to 2,271.76 euros gross per month. For pensions of a higher amount, the revaluation falls progressively, up to 22% for checks exceeding 5,679.41 euros gross per month
.
This system penalizes so-called “golden pensions” and reflects the Government’s will to reduce social security spending. The ISTAT index used for the calculation is not definitive and may undergo further changes in the event of significant changes in inflation
.
Increase in Pensions Based on Revaluation Groups
The 2024 revaluation system includes six revaluation bands, each with a different percentage of increase. The revaluation rates for 2024, as established by the INPS Circular No. 1 of January 2, 2024
, are as follows:
- 100% for pensions up to 4 times the minimum INPS (up to 2,271.76 euros), with an increase of 5.4%.
- 85% for pensions between 4 and 5 times the minimum (from 2,271.77 euros to 2,839.7 euros), an increase of 4.590%.
- 53% for pensions between 5 and 6 times the minimum (from 2,839.71 euros to 3,407.64 euros), an increase of 2.862%.
- 47% for pensions between 6 and 8 times the minimum (from 3,407.65 euros to 4,543.52 euros), an increase of 2.538%.
- 37% for pensions between 8 and 10 times the minimum (from 4,543.53 euros to 5,679.4 euros), an increase of 1.998%.
- 22% for pensions greater than 10 times the minimum (more than 5,679.41 euros), an increase of 1.118%.
Table of Pension Increases 2024
According to the INPS Circular No. 1 of January 2, 2024, the pension increases from January 1, 2024 are as follows:
- Minimum pensions have increased to 598.61 euros.
- The social allowance rose to 534.41 euros compared to 503.27 euros in 2023.
- Civil disability benefits have been adjusted based on the new revaluation.
For other pension groups, with a revaluation of 5.4%, the increases vary depending on the amount of the check:
- For pensions up to 4 times the minimum (2,271.76 euros), the increase is 5.4%. For example, a pension of 2,000 euros gross rose to 2,108
- For pensions between 4 and 5 times the minimum (from 2,271.77 euros to 2,839.7 euros), the increase is 4.590%. For example, a pension of 2,500 euros rose to 2,615
- For pensions between 5 and 6 times the minimum (from 2,839.71 euros to 3,407.64 euros), the increase is 2.862%. For example, a pension of 3,000 euros rose to 3,087
- For pensions between 6 and 8 times the minimum (from 3,407.65 euros to 4,543.52 euros), the increase is 2.538%. For example, a pension of 3,500 euros rose to 3,587.5
- For pensions between 8 and 10 times the minimum (from 4,543.53 euros to 5,679.4 euros), the increase is 1.998%. For example, a pension of 5,000 euros rose to 5,100 euros
- For pensions above 5,679.41 euros, the increase is 1.118%. For example, a pension of 6,000 euros rose to 6,072
euros.
euros.
euros.
euros.
.
euros.
If the revaluation does not reach the minimum of the next bracket, the rate of the previous bracket applies.
Who Are the 2024 Pension Increases for
The pension increases in 2024 concern more than 23 million Italian retirees. The increase applies to all pension treatments provided by public security, including management of the self-employed and direct pensions and to survivors, such as survivor’s and indirect pensions
.
Equalization also affects welfare benefits, such as social pensions and social benefits, and benefits for mutilated, disabled civilians, blind and deaf and dumb.
2024 Pension Increase: Since When
The increase in pensions took effect from January 1, 2024, but some retirees received the increase in their check only starting from March 2024.
Other News on Pensions 2024
The 2024 Budget Law and the tax reform have introduced numerous changes to the Italian pension system, including changes to Quota 103, Social APE and Women’s Option. To find out more, you can consult the details available on early pensions and disability pensions for 2024
.
Regulatory References
- Final text of the 2024 Budget Law.
- MEF Decree of 20 November 2023.
- INPS Circular No. 1 of January 2, 2024 and related official tables.
Conclusion
Pension increases in 2024 represent an important adjustment for millions of Italians, with increases that vary based on pension income. However, the equalization favors medium-low pensions more,
penalizing higher ones.
