Many changes are coming regarding pension Growth is expected for certain categories, The beneficiaries of these hikes would be those who receive old age and disability pensions, who would also have the possibility of enjoying the respective hikes from the 14th month onwards. To obtain additional information, we find out in detail how these revaluations will be calculated.
Pension revolutionised, pension hiked for people with disability and old age
During 2024, an increase in old-age and disability pensions is planned based on the calculation of the annual revaluation of pensions. This revaluation won’t just stop on the 2024 index, But this will also cover the current year, i.e. 2023, and have an impact on the disbursements for the next year. The indexation of 7.3% set for the revaluation of pensions at the end of 2022 does not represent a fixed value, and it is necessary to determine the exact indexation to be used to calculate the revaluation during the year.
Taking into account the increase in the cost of consumer goods already witnessed by the end of 2022, the index was Revised up to 8.1%, However, the payment relating to these increases will be credited only in the following year. In addition to the fixed index set at 8.1%, it will also be necessary to include an annual index to determine the amount of pension revaluation that will be established by the end of 2023.
The hike is for old-age and disability pensions, which typically comprise the categories receiving the lowest benefits. In particular, categories such as rose from 563.74 euros to 572.20 euros. Meanwhile, allowances for those over 75 can reach close to €600.
The amount increases on the 14th
Apart from the expected increase for disability and old age pension, the 14th month salary is also expected to increase. This measure is granted only to pensioners who have reached the age of 64 and who receive:
- early retirement;
- old age pension;
- survivor’s pension;
- disability allowance.
The revaluation is also implemented on the 14th month’s pay, and is included in those who get the increment in July. The amount of 14th varies according to the number of years of contribution paid and the total income received by the pensioner. On average, the amount fluctuates between 336 euros and a maximum of 655 euros. The 14th revaluation calculation applies to these amounts and affects the final value of the cheque.
For example, those whose contribution is 15 to 25 years old and whose gross income is up to 10,992.93 euros are entitled to an amount equal to 1.5 times the minimum wage. As a result,The amount of the 14th installment is 546 Euro, Instead, those who have contributed for 25 years receive 655.20 euros. In both the cases, the dues are subject to revaluation indexation, which will further increase them.
increased due to tax reform
The upcoming tax reform will bring various innovations and increase old-age and disability pensions, thanks to the new IRPEF rates, which will include changes in income taxation.
reform will also have a significant impact deductions and deductions, Significantly affecting the amount of pension paid. A new specific decree on disability pensions will soon be approved, which will provide targeted increases for this specific category of pensioners.
Furthermore, as anticipated in the financial maneuver, various innovations have been envisaged for those who intend to retire early from the world of work, as well as Tax on 14th and 13th month salary, The most recent news regarding the tax exemption on 13th street was announced a few weeks ago by the Deputy Minister of Economy, Leo. The measure is aimed at enabling retirees to receive a more substantial amount along with their pension.
To understand whether this project can be implemented, it will be necessary to wait for the update note of the 2023 Economic and Financial Document (DEF) which will be made available in the autumn. In summary, as outlined, a number of pension-related innovations are expected, particularly with regard to enhancements for specific categories of pensioners. This positive news has been welcomed by the retirement community.
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