INPS, payment of all pensions in January with the new revaluation mechanism
The increase will be visible on everyone's January payslip. Any differences settled with a subsequent adjustment.
Quick Look
The INPS has clarified that the equalization of pensions with the new six-band mechanism will be applied from the January 2027 installment for all pensioners, with any subsequent adjustments to adapt to the rules being examined by Parliament.
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Why It Matters
The government has introduced a new pension revaluation mechanism divided into six bands to generate spending savings.
On pension payments according to the new revaluation mechanism for six bands, the INPS clarifies: pension equalization will be applied from the January 2027 instalment.
The INPS clarification
The Institute explains that the increase will be recognized immediately and will be visible on the payslip of all pensioners, including those with payments exceeding four times the minimum. Any differences linked to the new revaluation rules, still being examined by Parliament, will be regulated with a subsequent adjustment, which will only serve to refine the amounts. No pension will remain stagnant in the first months of the year. In a statement, the INPS explains that «in line with the Government's indications, the Institute has adopted this solution to protect the purchasing power of pensioners from the first installment of the year».
The previous timeline
Yet in the hearing in the Chamber on the maneuver, the Institute had argued that pension payments up to 4 times the minimum salary (611.85 euros) would have occurred at the beginning of the year with the January payslip, while payments over 4 times the minimum salary (therefore starting from 2,447 euros) would have occurred within the first quarter of 2027, similarly to what happened in the past when new indexation mechanisms were introduced.
The new indexing mechanism
The new mechanism provides for 100% adjustment for pensions up to 4 times the minimum salary, then between four and up to five times the minimum 85% is recognized, over five and up to six times 53%, over six and up to eight 47%, over eight and up to ten times the minimum 37%, and over ten times 32%. This is a penalizing mechanism compared to the current one which provides for the full recovery of inflation up to times the minimum treatment, then 90% between above four times and five times, and 75% above five times the minimum. With the new mechanism, the government aims to save spending of 1.4 billion gross per year (850 million net of fiscal effects).
What to Watch
AI outlook — possibilities, not facts
Application of pension equalization in the January 2027 installment
Very likely · Within months
Open Questions
- What will be the final details approved by Parliament?
- How exactly will the adjustment affect individual pay slips?
