Extraordinary pension increase next August

Lower pensions in Portugal will again have an extraordinary increase of six or 10 euros next year, but only from August onwards, according to a preliminary version of the proposed 2021 budget.

According to the preliminary version of the budget, “a €10 extraordinary update will be paid to pensioners who get less than 1.5 times the value of the Social Support Index (IAS) of €438.81, or €6 for pensioners who receive at least one pension whose fixed amount has been updated in the period between 2011 and 2015”.

The IAS figure is €438.81 this year but should be updated next year.

As in previous years, this increase includes the figure resulting from the pension update to be carried out in January, taking into account inflation and economic growth.

“The amount of the regular annual update, carried out in January 2021, is incorporated in the amount of the extraordinary update”, the preliminary version of the budget said.

This year, the extraordinary increase covered around 1.9 million pensioners.

This is the fourth year in which the lowest pensions have had an extraordinary increase and which aims to compensate pensioners with lower value pensions and who did not have any update in the pensions between 2011 and 2015.

In 2017 and 2018, pensions had an extraordinary increase paid from August and last year the measure came into force in January.

The proposal for the EO2021 is due to be handed over by the government in parliament today.