In March, Italian pensions are expected to increase for a significant portion of pensioners due to three main factors. Firstly, a double increase is induced by a reduction in the second tax bracket (Irpef), which has dropped from 35% to 33% for those earning between €28,000 and €50,000 annually. According to estimates from the Parliamentary Budget Office, around 27% of pensioners will benefit from an average tax cut of 0.2 points, leading to an annual savings of approximately €55.

Secondly, the increases will include social allowances for individuals over 70 and those with total disability, which will be disbursed alongside arrears corresponding to January and February. This measure aims to enhance the support provided to some of the more vulnerable groups in society. Notably, while this increase is beneficial, it highlights the progressive nature of the tax system, where lower earners benefit relatively less from the tax reduction compared to those at the higher end of the income bracket.

Lastly, the overall changes in pension disbursement reflect broader efforts within the Italian government to adjust fiscal policies in response to economic pressures and the ongoing need for social support, particularly among older citizens and the disabled. This financial adjustment underscores the need for continuous reform in pension systems to address the evolving economic landscape while ensuring that support reaches those who need it the most.