According to a statement from the Ministry of Labour, Solidarity and Social Security, this update on the increase in pensions will add an additional €110 million to the Social Security budget.

The Social Support Index (IAS) will also increase more than initially forecast by the Government. In the note, the MTSSS indicates that the IAS will increase by 8.4% in January, from 443.20 euros to 480.43 euros. The Government had initially determined that the IAS would rise by 8% next year to 478.70 euros, according to the State Budget for 2023 (OE2023).

With this update, pensions of up to 960 euros (two IAS) will be updated by 4.83%, four tenths more than expected. As for pensions between 960 euros and six IAS, the increase will be 4.49% – against the estimated 4.07%. And in pensions for more than six IAS, the increase will be 3.89% (the initial forecast was 3.53%).

“A pension of 500 euros will have an increase of around 24 euros”, said minister Ana Mendes Godinho.

In monthly terms, a pension whose current value is 440 euros, will receive from January 461.25 euros (about two euros more than the 4.43% increase dictated). And a pension of 1,300 euros increases in January to 1,358.37 euros (about 5.5 euros more than the update initially defined by the Government).