In 2025 the increase in pensions will not only be triggered for those who already receive the allowance, with the revaluation based on inflation, but also for new pensioners: Istat has communicated the revaluation rate of the contribution amount, i.e. the contributions accumulated so far. This will trigger a bigger check for those who leave their jobs next year.
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When we talk about increases in pensions and revaluation of allowances, we are often referring to the increase that occurs every year in the pay slips of those who are already retired. But there is also another type of revaluation: that of the so-called ‘contributory amount‘, i.e. the automatic increase of all contributions accumulated up to that moment. This also happens regularly, and benefits those who retire in that year. In 2025, those who leave their jobs will have a 3.6% higher total contribution.
The pension revaluation table from 2025 band by band
The first type of revaluation, the one that benefits those who already receive the allowance, is based on Istat calculations regarding inflation, and serves to keep checks ahead of rising prices. For example, while awaiting official data, it is estimated that pensions will increase by around 1.6% next year, with a lower percentage as the amount increases. Overall it should be a few tens of euros per month increase:
- up to 3 times the minimum pension (1,795.82 euros gross per month), the increase will be equal to 1.6% of the amount
- between 3 and 5 times the minimum pension (between 1,795.83 euros and 2,993.04 euros), the increase will be equal to 1.44% of the amount
- over 5 times the minimum pension (2,993.05 euros), the increase will be equal to 1.2% of the amount
How much do pension checks increase with the revaluation of contributions
The second type, however, concerns those who will leave their jobs in 2025. The revaluation of contributions is measured not on inflation, but on the economic growth of the country. In particular, we calculate a capitalization rate which serves to increase the contribution amount.
Pensions, how much benefits will increase in December 2024 and for whom
Just as the checks of those who are already retired are updated based on price growth, the contributions of those who are still working are updated based on GDP growth. From 1 January 2025, the contributions will increase by 3.6%as Istat communicated in a use.
To calculate this capitalization rate, GDP growth over the last five years is taken into consideration. The rate for 2025, 3.6%, is one of the highest recorded in recent years. It had not exceeded 3% since 2006. For 2024 it was 2.25%, the year before 1.7% and again before that 1.5%. After 2020, the year of the Covid-19 pandemic, the update was 0%, while the year before it was still 1.5%.
What is the point of having a higher contribution amount
As mentioned, the contribution amount consists of all the contributions paid so far, but those for 2024 are excluded from this revaluation. Therefore, all those paid until 31 December 2023. For example, those who had exactly 100 thousand euros in contributions paid at the end of 2023 will have approximately 103,600 euros in total.
This means that the pension calculation will also be more favorable. In fact, from 1996 onwards pensions have been calculated with the contributory method. It means that the amount of the allowance no longer depends on the last salaries received, as was previously the case with the salary system, but on the amount of contributions paid. For those who worked even before 1996 the calculation is mixed (partly contributory, partly remunerative), but the substance does not change. Having more contributions paid also means getting a higher check.
Source: www.fanpage.it
