Italia: Invalidity Social Alowance Companiment Here are the 2021 Amounts

The forecast inflation rate for 2021 is passive. The price of consumer goods does not increase compared to the previous year, this is the inflation rate that ISTAT has forecast for 2021.

All social security and welfare treatments provided by INPS, are adjusted each year to the inflation rate. The more the cost of living increases, the more treatments increase in percentage. The social security law does not allow adjustments to the negative inflation rate and therefore in the presence of a growth in inflation in the red, in the worst case scenario, the treatments would remain unchanged. In 2021, however, performance will still rise due to the definitive inflation rate of 2020.

Equalization and inflation, a strange relationship
Even welfare treatments such as social security are subject to annual equalization. This happens every January. The rule by which these welfare treatments for invalids or for those who are not entitled to a pension is based on the result of the actual rate of the previous year and on the forecast rate of the year in which the adjustment applies. Both data certified by ISTAT.

For example, in January 2021, disability pensions, social security allowances and the like will be adjusted, firstly, based on the difference between the forecast inflation rate applied in January 2020 and the final inflation rate recorded during the year 2020. Yes deals with the increase in the cost of living in 2020 compared to 2019, which is applied on a forecast basis at the beginning of the year.

Added to this is the 2021 forecast rate, applied in the same way as the previous year, on a provisional basis, in a kind of vicious circle.

What will happen now to INPS treatments
As we said, the assistance benefits, such as civil invalidity pensions, carers’ allowances, social allowances and so on, are adjusted to the inflation rate calculated as explained above.

What will happen now concerns the two-year period 2020 – 2021 and the applicable rates were produced by the Ministerial Decree of the MEF (jointly with the Ministry of Labor), issued on November 16, 2020.

In January 2020, the adjustment was 0.4% while the final rate was 0.5%. Since the 2021 forecast rate is zero, welfare benefits will rise by 0.1% next month precisely due to the difference in inflation between the 2020 forecast rate and the actual rate of the same year on 2019.

In light of the above, in 2021 both the amounts of benefits and the income limits that some welfare benefits envisage to be assigned will change.

Here are the new figures
The civil disability pension paid to persons with certified disabilities between 74% and 99%, in 2021 will be equal to 287.09 euros. The income limit not to be exceeded to benefit from the benefit will be equal to 4,931.29.

The 100% civil disability pension for the disabled also rises to € 287.09 with the new income limit of 16,982.49. On the disability pension there is also the new increase to the million decided following the recent sentence of the Constitutional Court which for some has brought the treatment to 651.51 euros. For this benefit in 2021 it will be necessary not to exceed 8,469.63 euros as own income which must not exceed 14,447.42 euros accumulated with the spouse.

The social allowance, that is, the welfare benefit paid to those with little income and few contributions paid, should also rise from the current 459.83 euros to 460.27 euros in January. The income limit to benefit from this benefit should be adjusted in the same way, rising proportionally by 0.01%. It will be the usual INPS circular to clarify everything.