Tax legislation
Italy’s pension fifth assignment and November INPS rules
Tax legislation · · 2 min read
By Lorenzo Schiavone · calculator developer
For Italy’s pension fifth assignment (cessione del quinto), check the maximum assignable amount given by INPS. Circular 109 of 2 November 2026 updates guidance on deductions, renewals and moving outstanding repayments from salary to pension. INPS notice of 2 November
How to read the maximum deduction
INPS calculates the amount from the available pension after tax and social insurance deductions. A repayment can reach one fifth, subject to protection of the minimum pension. Some benefits are excluded. INPS lists the social allowance and pensions topped up to the minimum among them. Eligibility and excluded benefits
For example, one fifth of €1,200 net is €240. If the official notice gives a maximum of €180, €180 is the limit for that plan. The first figure is simple arithmetic. The second is the notified limit in this example.
Where to find the repayment limit
Before signing a contract you need the statement of the assignable amount (comunicazione di cedibilità). The INPS service explains how to request it and when the lender can obtain it through INPS. The agreement can last up to ten years. INPS distinguishes between accredited lenders and lenders with an INPS agreement. For the latter, INPS publishes quarterly maximum annual percentage rates (TAEG). INPS service and conditions
INPS validates the repayment plan and forwards the deductions to the lender. The lender decides whether to grant the loan. If the loan is renewed or repaid early, compare the dates and amounts in the updated plan with the pension statement. Guidance under circular 109
What happens when you retire
If you had a loan repaid through salary deductions, INPS uses traslazione for the transfer of outstanding instalments to the pension in eligible cases. Check the remaining repayment plan and the deduction notice. When the first deduction appears, compare it with the plan and the pension statement.
Tax deductions and loan repayments are separate entries. To reconcile the payment, check the amount actually deducted that month, including months with a 730 tax settlement.
Frequently asked questions
Is the repayment cap always 20% of the net pension? ▾
One fifth is the theoretical ceiling. INPS also protects the minimum pension and checks which benefits qualify. The practical limit is the one on the assignable amount statement.
Who grants the loan? ▾
The bank or lender grants it. INPS validates the plan, makes the deductions and forwards the instalments.
Can a salary deduction loan appear on my pension statement? ▾
Yes. The remaining instalments can transfer to the pension where permitted. Check the plan and the first statement with a deduction.
Sources and method
- INPS · updated pension loan deduction guidance, 2 November 2026
- INPS · circular 109 of 2 November 2026
- INPS · pension fifth-assignment service
Each guide states the period it covers and the assumptions behind its examples. Net pay estimates flag any prior-year municipal rates. The actual monthly payslip may differ from the annual average.