Italian Budget Law 2024

Pensions, here's how much the amounts are cut and why

Pension cuts.
There have been at least two years of pension cuts due to the recovery in inflation.
As the national secretary of Spi Cgil, Tania Scacchetti, explains: with last year's budget law, the government had introduced, both for 2023 and 2024, a highly penalizing revaluation mechanism for pensions with payments exceeding four times the minimum treatment, pensions of just over 1600 euros net, "far from rich pensions".
The losses due to the lack of revaluation will drag on over the years and will no longer be recoverable.
With the 2023 Budget Law, the revaluation was revised, introducing new rates compared to those envisaged in 1998 and now the mechanism has been limited further.
In this way the Meloni government cut pension amounts.
But by how much? read also Pensions: Giorgetti will make us regret Fornero Revaluation difference between 1998, 2023 and 2024: what changes The calculation, as described in law no.
448 of 1998, is based on a full revaluation (100% of the index recorded by Istat) for the part of the pension whose amount does not exceed four times the minimum salary, while for the part which exceeds this threshold (but remains within the five your revaluation) the revaluation is 90%, for the higher one it is 75%.
The 2023 Budget Law reviews the system and not only for the application of more inconvenient rates.
In fact, it is established that with the new mechanism the revaluation is partial for the entire amount of the pension.
A big change because: With the ordinary revaluation a check of 2,500 euros would have been revalued at 100% of the rate for the first 2,100 euros (approximately) and at 90% for the remaining 400 euros, with the new system all 2,500 euros are recalculated with the partial rate.
The 2024 Budget Law confirms this mechanism, but the percentages are slightly revised.
read also Pensions and revaluation, here is what the amount would be in 2024 without the government cuts Meloni Revaluation mechanism: the table of cuts Here is a table that compares all the revaluation percentages between the ordinary ones (last applied in 2022) and those modified by the Meloni government.
Pension amount Revaluation 2022 Revaluation 2023 Revaluation 2024 Up to 4 times the minimum payment 100% 100% 100% Between 4 and 5 times the minimum payment 90%* 85% 90% Between 5 and 6 times the minimum payment 75% ** 53% 53% Between 6 and 8 times the minimum treatment 75%** 47% 47% Between 8 and 10 times the minimum treatment 75%** 37% 37% Above 10 times the minimum treatment 75 %** 32% 22% *Only for the part of the amount that exceeds 4 times the minimum treatment.
** Only for the part of the amount that exceeds 5 times the minimum treatment.
Very heavy cuts for the analysis of the CGIL and the SPI.
From the analysis of the pension department of the CGIL and the SPI, as La Stampa recalls, very heavy cuts emerge on pensions in the two-year period 2023-2024, which even reach 962 euros for a gross pension of 2,300 euros (net 1,786), up to 4,849 euros gross for a gross pension amount of 3,840 euros (2,735 euros net).
“These cuts projected on the average life expectancy – we read in the analysis by Cgil and Spi – reach very high amounts, starting from 6,673 euros net for a pensioner with a net pension of 1,786 euros, up to 36,329 euros net, for a pension of 2,735”.
The CGIL also added that, if this were not enough, the government intends to change the indices with which to calculate the revaluation of pensions from 2027, replacing the current equalization index with the GDP deflator.
The study therefore demonstrates how this change could have a very serious impact on pensions, even if the Ministry of Economy and Finance has made it known that "nothing has been decided today" and the GDP deflator in the coming years would ensure an indexation of pensions higher than 'inflation.

Author: Hermes A.I.

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