With an update memorandum to Def approved by Cabinet on Wednesday 27 September It revised forecasts on the estimated inflation rate for 2023Also useful information to get an idea about How much will pensions increase? Early next year.
In fact, we must remember that in January of each year, pensions are adjusted according to the cost of living by applying the average inflation rate determined for the previous 12 months.
In the economic and fiscal document, the estimated inflation for 2023, which will be applied from January 2024 to all Social Security checks, was equal to 5.6%: This means, for example, that a pension of €1,000 to which the above ratio was fully applicable would have enjoyed an increase of €56.
However, now that we have more information to make a more accurate estimate of it What will inflation be like in 2023?The government updated the data and reduced it slightly.
Inflation 2023, what will be the pension revaluation rate
According to Nadef forecasts, the average inflation recorded in 2023 should equal 5.4%That is, a decrease of 0.2% compared to what was expected last April.
However, it should be emphasized that this ratio is still possible Subject to fluctuations, although it should not differ significantly from what was estimated in the update note. It will be much better next year, when the value drops 2.3% It is close to the ideal value indicated by the European Central Bank (2%).
How much do pensions increase?
First of all, it is good to remember that there is already a pension plan 2023 revaluation adjustmentwhich averages 0.8% It is equal to the difference between the indexation rate applied – which is 7.3% – and the final rate confirmed by Istat, which is 8.1%.
The legislation stipulates that the amendment must take place at the beginning of January, but the Meloni government appears to be working to advance it to November by specific decree.
Thereafter, another revaluation rate will be applied to the pension, which, according to Nadef estimates, should be equal to 5.4%. A percentage that will be fully applied only to pensions of the same amount Up to 4 times the minimum treatment (which in 2023 is equal to 568.24 euros), while for the highest levels, the system introduced by the government with the 2023 Budget Law comes into force under which Redefine revaluation percentages. In detail, if it is confirmed that the inflation rate has reached 5.4%, the following rates will be applied to pensions:
- Up to 2272.96 euros: Increase to 100% of the rate, thus 5.4%;
- Between 2272.96 and 2841.20 euros: Increase to 85% of the rate, thus 4.59%;
- Between 2841.20 and 3409.44 euros: Increase to 53% of the rate, thus 2.862%;
- Between 3,409.44 and 4,545.92 euros: Increase to 47% of the rate, therefore 2.538%;
- Between 4545.92 and 5682.40 euros: Increase to 37% of the rate, hence from1.998%;
- Above 5,682.40 euros: Increase to 32% of the rate, thus1.728%.
For example, a pension of €1,000 will be increased by 54 eurosWhile one costs 1,500 euros 81 euros. A check for €2,000 will benefit from an increase of 108 euros per month, while the increase will be for one of 2,500 euros 114.75 euros. As for a pension of 3,000 euros, the increase will be equal to 85.86 euros. Numbers to consider before taxes
But be careful: as stated in the text of the budget law that introduced the aforementioned system for the years 2023 and 2024, for pensions whose value exceeds the maximum but is still below this limit, they are increased by the automatic revaluation share due to the previous range, and the re-evaluation increases. Evaluation is attributed to the aforementioned increased limit.
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