The effects of the Meloni government’s tax reform, with the revision of Irpef rates and income brackets, will also be felt on pensions from April 2024. Specifically the new personal income tax rates they provide for the “tax-free zone” for 2024. income up to 15 thousand euros per year. This rate is 23 percent in the income range of 15 to 28 thousand euros. The weight increases to 35 percent between 28 thousand euros and 50 thousand euros, and exceeds 43 percent at 50 thousand euros. How will the tax burden on allowances change, especially on lower ones? Let’s try to clarify.
The Irpef rate of 23 percent for retirees whose income is between 15 thousand and 28 thousand means a 2 percent reduction in tax compared to the past. Adjustments for previous months will also apply to the April pension check: If the pension installments in January and February are insufficient for the total collection, the deductions will continue until the next monthly installments are completed. .
Regarding fiscally taxable services, regional and municipal surcharges for 2023 are withheld from the February installment in addition to the monthly IRPEF. Local taxes are withdrawn in eleven installments from January to November following the year to which they relate. Tax withholdings do not apply to benefits that are not taxable for certain reasons, such as civil disability benefits, pensions or benefits, tax deductions for foreign residence, etc.
New lower pension amounts in 2024
That’s not all, because this year the adjustment of allowances according to the cost of living will begin. Pensions revalued according to inflation will increase by 5.4 percent in 2024. In 2023, prices had increased by 8.1%; This was a sign that the “cooling” in prices had begun. The new amounts for lower pensions will start with minimum treatment from January: a full increase of 30.68 euros to 598.61 euros. Without the social increase, the disability pension will increase by 17 euros to 333 euros. Social benefits are also increasing and will increase to 534.41 euros, or +27.11 euros.
For controls exceeding 4 times the minimum treatment, the correction will be 100%. This will then gradually drop to 85% for checks equal to or less than 5 times the INPS minimum payment. For treatments less than 6 times the minimum, the revaluation will be 53%. For pension checks less than 8 times the INPS minimum payment, the adjustment will be 47%. For checks up to a minimum of 10 times, this rate drops to 37 percent. For checks exceeding 10 times the INPS minimum payment, i.e. €5,679.40 per month, the revaluation is 22%.
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.
