I revaluation cuts on pensions are an extremely debated element. Although the Government’s decision has even arrived in Constitutional Courtit seems very difficult that the Court will be able to give reason to the pensioners: this would force the State to return the amount deducted, which in the final analysis would translate into an expense of approximately 6 billion euros.
But if such an epilogue seems remote, it is right to be aware of how much we would earn without the cuts. Here is a small table.
Pension Revaluation Cuts: How Much Would We Have Without Them?
First of all, it is important to clarify that these cuts affect the medium-high pensions, (those exceeding four times the minimum wage, or approximately 2,100 euros gross per month).
Under the original 1998 revaluation system, pensions were expected to be adjusted to 100% of inflation for amounts up to three times the minimum; 90% for those between three and five times the minimum; and 75% for pensions above that.
But the new regulations have changed this mechanism: adjustments have become less generous, especially for higher pensions.
A pension of 2,500 euros gross per month, for example, would be around 2,827 euros today if one took into account the vecchio revaluation system. But by dint of cutting, the Government has led to a settlement of about 2,795 euros. The difference is more evident the more the pension rises.
Download our app and save with active bonuses in Italy:
Let’s take the case of a pension of around 3,000 eurosWith the revaluation the allowance would have risen to 3.231,17 euro in 2023 and 3.397,29 euro in 2024. But the Meloni government mechanism wanted a 53% revaluation of the rate: therefore:
- the increase is 3.128,79 euro in 2023
- of 3,218.33 euros in 2024.
In practice, this is a cut of no small importance: approximately 178,96 euro per month.
The Constitutional debate on cuts
And it is precisely on the constitutionality of these cuts that experts point the finger, especially if we take into account the fact that the people with the highest pensions are those who have decades of contributions behind them. Decades of contributions that have not been repaid fairly.
While there are those who believe the reduction is legitimate, as it aims to give some breathing space to the state budget, which is already strained and crushed by a thousand tasks, it is equally true that the people who suffer the harsh consequences are who have paid contributions for years, fulfilling their duties.
The discontent among pensioners is clear, but it still seems unlikely that the consultation, questioned on the legitimacy of this measure, will agree with them: it would mean exposing the state coffers to an exorbitant outlay (the 6 billion euro mentioned above) that would increase the deficit, which has already reached historic highs for too long.
