The Government will allocate a financial support of €125 to workers with incomes of up to €2,700 in order to help mitigate the effects of inflation.
The government will allocate financial support of €125 to workers with incomes of up to €2,700 per month to help mitigate the effects of inflation, announced the Portuguese prime minister. This decision is part of the package of measures presented on Monday by António Costa, at the end of an extraordinary Cabinet meeting to approve a plan to support families during the current economic situation.
In October, “the government has allocated a €125 payment to each non-pensioner citizen with income up to €2,700 per month,” said the prime minister. Thus, the case of a couple with two children and in which both have individual incomes of up to €2,700 per month will receive an extra payment of €350 next month, António Costa explained.
Furthermore, the government decided to allocate, regardless of family income, an extraordinary payment of €50 for each dependent child up to 24 years of age.
Other measures announced by the Portuguese government:
- VAT on electricity down to 6%;
- Payment to pensioners of 14 and a half months of pensions, instead of the usual 14 months, with the extra half pension being paid in October;
- Allowing gas consumers to return to the regulated market;
- Extending until the end of the year the suspension of the increase in the carbon tax, the return to citizens of the additional VAT revenue and the reduction in the ISP tax on oil products.
- Pension increases in 2023 of 4.43% for pensions up to 886 euros, 4.07% for pensions between €886 and €2,659; and 3.53% for other pensions subject to update;
- Price freeze on public transport passes and CP rail tickets during the whole year of 2023;
- Limiting the maximum updating of housing and commercial rents to 2% in 2023;
- Creation of an extraordinary support to renting, through the attribution of a tax benefit to landlords on income from property in terms of IRS (income tax) or IRC (corporation tax).