Regarding pension payments under the new six-band indexation mechanism, INPS has clarified that the pension adjustment will be applied from the January 2027 instalment. The Institute explains that the increase will be applied immediately and will be shown on the payslips of all pensioners, including those whose pensions exceed four times the minimum.
Any discrepancies arising from the new revaluation rules – which are still under consideration by Parliament – will be settled by a subsequent adjustment, which will serve only to finalise the amounts. No pension will remain unchanged in the first few months of the year.
In a press release, INPS explains that ‘in line with the Government’s guidelines, the Institute has adopted this solution to protect pensioners’ purchasing power right from the first instalment of the year’.
And yet, in the hearing in the Chamber of Deputies on the budget, the Institute had maintained that pension payments of up to four times the minimum pension (€611.85) would be made at the start of the year with the January payslip, whilst payments exceeding four times the minimum pension (i.e. from €2,447 upwards) would take place by the end of the first quarter of 2027, in line with what has happened in the past
when new indexation mechanisms were introduced.
The new mechanism provides for a 100 per cent adjustment for pensions up to four times the minimum pension, then 85 per cent is granted for pensions between four and up to five times the minimum, 53 per cent for those between five and up to six times the minimum, 47 per cent for those between six and up to eight times the minimum, 37 per cent for those between eight and up to ten times the minimum, and 32 per cent
for those over ten times the minimum.
This is a more restrictive mechanism compared with the current one, which provides for full compensation for inflation up to the minimum pension, then 90 per cent for amounts between four and five times the minimum, and 75 per cent for amounts above five times the minimum. With the new mechanism, the government aims to achieve annual gross savings of 1.4 billion (850 million net of tax effects).
