To limit the costs of share 100, the Government intends to launch a new tightening on the inflation adjustment of pensions exceeding 1.500 euros gross per month. The novelty will be contained in the maxi-amendment to the Budget law that the Executive is preparing to present to the Senate and on which the question of trust will almost certainly be raised.
Full indexation will only be granted to pensions up to three times the minimum, i.e. up to 1.530 euros gross per month. Beyond this threshold, the adjustment will be progressively reduced as the allowance increases, according to a similar but less severe scheme compared to the one currently in force, which would have expired at the end of 2018. In this way, the government expects to save 200 million next year, 600 in 2020 and 900 in 2021.
Here's what the new headbands should look like:
- 95% indexing on checks between 3 and 4 times the minimum;
- 80% between 4 and 5 times;
- 60% between 5 and 6 times;
- 50% over six times the minimum.
Il mechanism in effect today (extended since the time of the Letta government) provides for the following limits for the indexation of pensions:
- 40% on checks between 3 and 4 times the minimum;
- 20% between 4 and 5 times;
- 10% between 5 and 6 times;
- no adjustment for amounts exceeding six times the minimum.
If this scheme had remained in force, the savings would have been 350 million in 2019, 800 million in 2020 and 1,250 billion in 2021.
The new solution will last four years, after which it will be reconsidered.
Without this measure, it would have come back into effect as of 2019 the old indexing scheme:
- 100% for pensions up to three times the minimum;
- 90% between 3 and 5 times the minimum;
- 75% over 5 times the minimum.
The return of the adjustment on three brackets has been requested several times in recent years by the unions.
