Italy's INPS pension outlay rises 1.4% in 2025 as welfare spending expands

The National Institute of Social Security (INPS) reported that total pension expenditures reached €325.06 billion in 2025, an increase of €4.4 billion or 1.4 % compared with the previous year. The rise is attributed mainly to indexation of pensions following 2024’s average inflation of about 1 %.

Spending on income support grew by €0.8 billion to €19.7 billion, reflecting higher payments for unemployment benefits and salary‑integration schemes. Social‑inclusion measures rose by €2.4 billion, driven by the inclusion allowance, training and employment support, and an additional €1 billion for assisted pensions.

Over the last decade the share of pension payments in INPS outlays fell from 88.8 % to 83.6 %, while non‑pension benefits rose from 11.2 % to 16.4 %. Transfers from general taxation (GIAS) increased from 31.83 % of total funding in 2015 to 36.67 % in 2025. Roberto Ghiselli, president of the supervisory council, warned that contribution growth has lagged real employment growth, stressing a need to boost productivity and wages.

The institute’s overall budget handled about €425 billion of institutional benefits, posted a €16.8 billion surplus, a €4.5 billion economic result, net assets of €42.8 billion and an administrative surplus of €136.8 billion. Assisted allowances have risen 37 % since 2015, and the inclusion allowance (ADI) cost €5.6 billion in 2025, about €3 billion less than the former citizen‑income scheme it replaced.