Pensions will be higher in 2024. In addition to the increases associated with adjusting treatments for inflation, social security check holders (like all taxpayers) will benefit from a readjustment of Irpef rates, a measure linked to the budget bill the government is preparing to pass. So, let’s see what will happen and what the numbers are being talked about. It will begin with the revaluation of retirement checks, which will begin in early January.
Pension revaluation 2024: amounts and dates
The decree signed by Minister of Economy Giorgetti and Minister of Labor Calderone foresees the adjustment of inflation to +5.4% as of January 1, 2024. However, the full revaluation (equal to 5.4%) will only apply to pensions equal to or less than 4 times the minimum amount (€2,272.96), while for those higher the percentage will decrease as the amount increases. Leaving the technical details aside, let’s look at what the numbers are. With a gross pension of 1,000 euros there will be a monthly increase of 54 euros (always gross); this will rise to 108 euros for a pensioner receiving 2,000 euros.
| Pension amount (gross) | Revaluation percentage | gross increase |
| 568 | 5.4 | 30.7 euros |
| 600 | 5.4 | 32.4 |
| 750 | 5.4 | 40.5 |
| 1,000 | 5.4 | 54 |
| 1,250 | 5.4 | 67.5 |
| 1,500 | 5.4 | 81 |
| 1,750 | 5.4 | 94.5 |
| 2,000 | 5.4 | 108 |
| 2,500 | 4.59 | 114.75 |
| 3,000 | 2.86 | 85.8 |
| 3,500 | 2.54 | 88.9 |
| 4,000 | 2.54 | 101.6 |
| 5,000 | 2 | one hundred |
| 6,000 | 1.18 | 70.8 |
In the communication regarding the January 2024 payroll, INPS did not mention possible delays in the payment of increases (as happened last year with payments exceeding 4 times the minimum). Except for last minute surprises, increases for all retirees will start next month. The Social Security Institution announced that the payment will be made as of January 3.
Irpef reform is coming
Another small increase will occur thanks to the reorganization of Irpef rates. In this case, the measure is being examined by the executive, which just a few days ago postponed the decree law on the three brackets to the next meeting of the council of ministers for a technical study in accordance with the maneuver currently being approved. However, the measure is nearing completion. The rates must therefore increase from 4 to 3 and the maximum tax benefit should be equal to 260 euros per year.
The annual tax advantage will be 200 euros for those with an income of 25 thousand euros, and will increase to 260 euros for incomes above 28 thousand euros. Let’s see the quantities in the table below.
| Income | Annual tax benefit (excluding deductions and deductions) |
| up to 15 thousand | 0 |
| 20,000 | 100 euros |
| 25,000 | 200 euros |
| Income of 28,000 and above | 260 euros |
For those with a total income above 50 thousand euros, there should be a linear cut in deductions of 260 euros, which would nullify the effects of the reform (above this threshold), while workers with incomes below 15 thousand euros would still be able to benefit. from the increase in income deductions from work (from 1,880 euros to 1,955 euros). Considering that personal income tax is paid by everyone with income, it is clear that the Irpef reform will also benefit retirees (like workers).
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
