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HomeNewsNew Budget Law: Pension Cuts, Savings of Over 3.5 Billion in 2023...

New Budget Law: Pension Cuts, Savings of Over 3.5 Billion in 2023 and 6.8 Billion in 2024

The Meloni government has introduced significant cuts to pensions in 2023 and 2024, with expected savings of over 3.5 billion euros in 2023 and over 6.8 billion in 2024. This economic maneuver has been met with concern from Italian pensioners, as the reduction in pension payments will directly impact their finances.

Ordinary Rules and Government Modifications

According to information provided by the pensioners’ union, Spi Cgil, the government decided to redefine the pension indexation mechanism temporarily for the years 2023-2024. The existing law, which is over twenty years old, provides for differentiated equalization based on the pension amount, but the government deemed the adjustments too burdensome for the state coffers.

New Tiers and Reworked Percentage Increases

Ordinary rules stipulated three indexation tiers based on the pension amount, but the Meloni government increased the tiers and decreased the percentage of increases. In 2023, pension payments were divided into six tiers with varying percentage increases. For instance, pensions up to 4 times the minimum were increased by 100%, while those exceeding 10 times the minimum were increased by only 32%.

Indexation Rate and Changes in 2023 and 2024

The provisional indexation rate for 2023 was 7.3%, but the final rate reported by Istat was 8.1%. This led to a settlement that the government decided to advance from January 2024 to December 2023. The equalization for 2023, therefore, was calculated by adding the provisional rate and the settlement.

For 2024, the expected inflation rate is 5.4%, but the Meloni government maintained significant cuts in pension indexation. According to the government, this tightening of equalization will result in savings of over 3.5 billion in 2023 and over 6.8 billion in 2024, reaching a total of 61 billion by the decade’s end in 2032.

Impacts on Pensioners: Calculations and Projections

According to calculations by Cgil, the cuts will have a significant impact on pensions, with losses ranging from 351 euros to 1,768 euros gross in 2023 and from 611 euros to 3,081 euros gross in 2024, depending on the pension amount. These cuts, projected over the average life expectancy, translate into significant net losses for Italian pensioners.

In response to this economic maneuver, Spi Cgil and Cgil Puglia will hold a press conference in Bari to discuss the repercussions of the Budget Law on the Italian pension and welfare system. The meeting will also provide specific data on pensions in Puglia, highlighting differences compared to the national average.

In conclusion, the pension cuts introduced by the Meloni government raise concerns among Italian pensioners, who see their pension payments reduced and experience significant impacts on their finances. The discussion on this delicate matter will continue to be at the center of public debate.

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