Richer 2024 pension: increases, adjustment and new Irpef

In 2024 the minimum pension will rise to 598.61 euros thanks to the recovery of inflation set at 5.4%. But thanks to the rule of the Budget Law for 2023 which provides for a further increase of 2.7% for pensions that do not exceed the minimum threshold for 2024, the amount rises to 614.77 euros. The INPS specifies this in a circular on the renewal of pensions, welfare benefits and retirement benefits for 2024. The circular reminds us of the inflation recovery percentages provisionally set at 5.4% (100% for pensions up to four times the minimum payment, 85% for those between four and five times the minimum, etc.) but also what is the minimum amount of social pensions for 2024 (440.42 euros per month, 5,725.46 in a year) and social allowances (534.41 per month, 6,947.33 in a year). The annual amount for the minimum pension treatment for employees and self-employed workers in 2024 is 7,781.93 euros (for 598.61 euros per month for 13 months).

How pensions will change in January 2024

The revaluation of pensions will not be the same for all pensioners – explains a fact sheet from Adnkronos. Pensions equal to or less than 4 times the minimum (i.e. up to €2,272.76) will be revalued by 100%: effective increase equal to 5.4% of the allowance; pensions from 4 to 5 times the minimum (i.e. from €2,271.76 to €2,839.70) will be revalued by 85% with an effective increase in the allowance equal to 4.59%; pensions from 5 to 6 times the minimum (i.e. from €2,839.70 to €3,407.64) will have a revaluation of 53%, with an increase in the monthly allowance equal to 2.862%; pensions from 6 to 8 times the minimum (from €3,407.64 to €4,543.52) will be revalued by 47%, with an increase of 2.538%; pensions from 8 to 10 times the minimum (i.e. from €4,543.52 to €5,679.40) will be revalued by 37%. In these cases, the check will be increased by just 1.998%; pensions over 10 times the minimum, and therefore with a monthly allowance that exceeds €5,679.40 they will only be increased by 22% of inflation with an increase of around 1.2%. The percentages of the latter threshold are the result of the changes in pension matters with which the executive set the revaluation rate of 22%, instead of 32% as in 2023.

The remodulation of Irpef rates

But the revaluation is not the only aspect that will affect the amount of pensions, explains Adnkronos. For many pensioners, in fact, an indirect benefit will come from the new Irpef rates established with the Budget Law. The Irpef reform brings the rates from 4 to 3, taxing incomes of €15,000-€28,000 at 23% (and no longer at 25%), as already happens for incomes up to €15,000.

The new Irpef

How do the Irpef brackets change? No tax area – €28,000 gross annual income: 23% of Irpef; between 28,000 and 50,000 euros of annual gross income: 35% of Irpef; over €50,000: 43% of Irpef. In essence, like workers, pensioners who have a gross income between €15,000 and €28,000 will also pay a reduced IRPEF rate of 2% compared to previous years.

The Irpef adjustment

The peculiarities of January do not end here. In fact, the pay slips for the first month of 2024 also include the Irpef adjustment. It must be specified – explains the Adnkronos sheet – that the recalculation of the withholdings was carried out on the basis of the total amount of the pension benefits paid by INPS only. Where deductions have been made to a lesser extent than what is due on an annual basis, the debit differences will be recovered, as usual, on the pension installments for January and February 2024.