Politics · Italy · 1 day ago

Italian pension supplements and taxes can erase much of the benefit of higher contributions

Italian pension supplements and taxes can erase much of the benefit of higher contributions

A CGIL analysis of Italy’s pension system compares three people whose pensions were calculated from different contribution histories.

In its 2025 examples, a pension starting at €384.62 a month rose to €749.11 after supplements, with no tax deductions in the calculation.

A pension starting at €807.69 ended up at €745.97 after supplements no longer applied and taxes were deducted.

The examples show how minimum-pension top-ups, social supplements and taxes can narrow the gap between people with low and higher contribution-based pensions.

The smallest calculated pension in the table still came from contributions; none of the three people had paid nothing into the system.

Separately, a person with no contribution-based pension could receive up to €747.84 a month in 2025 through the social allowance and an increase, if they met age and income rules.

The article says the allowance could reach €768.29 in 2026 under specific age and income conditions, while actual take-home pension amounts can vary with local taxes.

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