The revaluation of pensions returns to the center of attention as 2027 approaches, when millions of Italian pensioners will see their allowances updated due to the cost of living adjustment. The first simulations indicate an increase around 2.9%, significantly higher than the 1.4% applied in 2026but to understand how much money will actually arrive in the pockets of pensioners, it will be necessary to consider the gross amount of the treatment, the different revaluation percentages envisaged by the legislation and the weight of taxes, in addition to any changes that could be introduced with the next budget law.
The automatic equalization mechanism, designed to at least partially protect purchasing power from rising prices, does not guarantee the same percentage of adjustment across all pension brackets and, above all, must not be confused with an additional increase decided by the government. The revaluation serves to compensate for the inflation already recorded, while the concrete benefit also depends on the structure of the allowance and the tax situation of the pensioner.
Pensions 2027, why there is talk of a 2.9% revaluation
The estimates currently used to calculate next year’s increases are around 2.9%, a percentage that could still change before the publication of the inter-ministerial decree which will establish the provisional revaluation rate to be applied starting from 1 January 2027.
According to definitive data released by Istat on 16 October, in September 2026 general inflation rose to 4.2% on an annual basis, while that acquired for the entire year reached 3.1%. However, for the calculation of pensions a different indicator is used, the FOI index net of tobacco, referring to the consumer prices of the families of workers and employees, whose average annual variation constitutes the reference parameter for equalization.
Precisely on the basis of the trend of this index, the most recent simulations indicate a revaluation close to 2.9%, without this value being considered definitive. The actual adjustment will be determined by the decree expected in November, while any differences compared to the annual inflation ascertained subsequently can be recovered through an adjustment.
How the revaluation works: the three INPS bands
The most important aspect for understanding the increases concerns the revaluation system by brackets, which recognizes the full adjustment to the lowest part of the pension and applies progressively reduced percentages to the quotas that exceed certain thresholds.
Taking as a reference the minimum INPS payment for 2026, equal to 611.85 euros per month, the indicative thresholds for the 2027 calculation are as follows:
- 100% revaluation for the pension portion up to four times the minimum payment, i.e. up to 2,447.40 euros per month.
- 90% revaluation for the quota between four and five times the minimum, therefore between 2,447.40 and 3,059.25 euros.
- 75% revaluation for the part that exceeds the minimum treatment five times, over 3,059.25 euros per month.
If the revaluation rate were confirmed at 2.9%, the percentages applied to the different portions of the check would therefore be equal to 2.9%, 2.61% and 2.175%.
The distinction is fundamental because the ordinary system does not reduce the revaluation of the entire pension once a threshold is exceeded, but applies different percentages to the individual shares that compose it. A pensioner who receives 3,500 euros gross per month, for example, would receive the full revaluation on the first part of the allowance, the 90% one on the intermediate band and the 75% one only on the amount exceeding the last limit.
For a pensioner who receives 1,000 euros gross monthly, the hypothesized adjustment would translate into an additional 29 euros per month, equivalent to 377 euros gross over thirteen monthly payments, while a 2,000 euro allowance would increase by 58 euros per month, with an annual increase of 754 euros.
On higher pensions the increase in absolute value would be greater, but the overall percentage revaluation would be lower than that recognized for the lower allowances, precisely due to the reduction applied to the higher bands.
Furthermore, an essential distinction remains between the gross amounts used in the simulations and the figures actually credited to the current account: the net increase will depend on the IRPEF, the regional and municipal surcharges and any deductions due, making it impossible to identify an identical net increase for all pensioners who receive the same gross treatment.
Minimum pensions 2027, the crux of the extraordinary increase
A particular situation concerns minimum pensions, for which the ordinary revaluation is intertwined with the expiry of the extraordinary increase recognized in recent years.
In 2026 the minimum INPS payment is set at 611.85 euros per month, but the temporary increase of 1.3%, equal to 7.95 euros, allows the beneficiaries concerned to reach 619.80 euros.
By applying a revaluation of 2.9% to the ordinary base of 611.85 euros, the minimum payment for 2027 would rise to approximately 629.59 euros per monthwith a theoretical increase of 17.74 euros compared to the basic amount of 2026.
The comparison with what was actually received by those benefiting from the extraordinary increase, however, returns a different result: if the additional increase of 1.3%, expiring at the end of 2026, were not extended, the transition from 619.80 to 629.59 euros would translate into just 9.79 euros more per month.
This is a significant difference, especially for pensioners with the lowest incomes, because the ordinary revaluation would risk not fully compensating for the increase in prices compared to the amount actually collected in the previous year.
The topic is therefore closely linked to the 2027 Budget Law, which will have to clarify whether the temporary increase will be confirmed or whether new measures will be introduced to support lower pension payments.
When will the increases arrive and what you need to check
The ordinary revaluation of pensions will start from 1 January 2027 and will be applied automatically by INPS, without pensioners having to submit a specific application to obtain the adjustment.
Before knowing the final amounts, however, it will be necessary to wait for the interministerial decree on equalization and verify the final content of the Budget law, after the approval of the bill by the Council of Ministers on 28 October.
Any adjustment between the provisional index applied in 2027 and the definitive one can instead be made in the following year, according to the procedures established by the legislation.
For those preparing to retire, the revaluation of allowances already paid should not be confused with the rules for calculating the first pension, which depend on the contributory position, wages and coefficients applicable at the time of retirement.
The central point remains the relationship between the nominal increase in the allowance and the purchasing power actually recovered. A pension that increases by a few tens of euros per month can represent concrete support for the family budget, but its ability to compensate for the increase in the cost of energy, food, services and healthcare costs will depend on the evolution of prices and the tax treatment applied, as well as on the decisions that will accompany the definition of the economic package for 2027.
