May Pension Updates: Potential Increases and Tax Withholding Recalculations

Possible increases up to 100 euros in May pensions thanks to the recalculation of tax withholdings applied during the previous year. With the end of April approaching, retirees are waiting for the first available date to withdraw their pension. In the payslip, which has already arrived in recent days, it is necessary to take into account any changes related to the regional additional tax, which Il Messaggero had already discussed in recent days. New settings may have been introduced for those waiting for the application of the new reduced Irpef tax rates. The dates and the calendar The first banking day of the month is May 2, because May 1 is a holiday. On that day, those who have the credit to their bank account will receive it. For the withdrawal at the Post Office, here is the calendar that follows the alphabetical order. - from A to C: May 2; - from D to K: May 3; - from L to P: May 4 (morning only); - from Q to Z: May 6. The payslip and the possible 100 euros "Taxation is applied based on brackets" is the phrase that might appear inside the payslip for those waiting for the application of the new reduced Irpef tax rates. Under the item "arrears," there could be an amount up to 100 euros for those with an income over 28,000 euros. For those with an annual income up to 15,000 euros, no increase is foreseen. The recalculation At the end of 2023, a recalculation of the tax withholdings applied during the previous year was carried out, considering the total amount of pension benefits paid by the INPS: they include Irpef and regional and municipal additional taxes. If the monthly tax withholdings applied to pensions during the last year were lower than the amount due for the entire year, INPS recovered the differences by withholding the amounts due from the pensions of January and February 2024. If the amount withheld from the pensions of January and February 2024 was not enough to "cover" the debt, INPS continued to withhold the amounts due from subsequent pensions until this debt was fully paid off. The withholdings The installment plan is extended until November only for pensioners whose total annual amount of pension benefits is up to 18,000 euros. For these subjects, if the recalculation of the tax withholdings has determined a debit balance of more than 100 euros, the installment plan is extended until November.