From this August, pensions will be paid with the new applicable tax rates, under the new IRS tables, which “reduce the rate applied to pensions,” announced the Instituto da Segurança Social (ISS).
In a statement published on its website, the organization explains that “in August and September, the withholding will be lower to correct the over-withheld amounts from the first seven months of the year.”
Then, “from October, the normal tables will come into effect and remain until the end of the year.”
Additionally, “from September, you can request, if you wish, a withholding rate higher than that of your bracket.”
In the same note, the ISS reveals that “to obtain your Pension Receipt, access the Declarations Area of the Social Security Portal and select Obtain Pension Receipts,” noting that the “pension receipt is also available on the Social Security Mobile App.”
The payment schedule for this August has already been released by Social Security. Stay informed.
Pensions will be ‘more plentiful’ this month
Social Security and Caixa Geral de Aposentações (CGA) will process August pensions according to the new IRS withholding tables, which will result in higher net pensions this month.
“Both Social Security and Caixa Geral de Aposentações will apply the new tables already in August,” confirmed an official source from the Ministry of Labor, Solidarity and Social Security (MTSS), when asked about when the two entities will reflect the new rates.
Unlike last summer, when Social Security and CGA could not apply the new tables immediately after the new withholdings were announced, the two entities plan to pay the upcoming pensions according to the new withholdings.
In 2024, the tax also dropped mid-year, and when the Government announced the new tables at the end of August, with new values to be applied in September, Social Security and CGA had already processed the next month’s pensions. Thus, they only applied the new rates in October, making adjustments for September’s pensions. This time, the forecast is different.
What changes this year?
According to the Government’s order, companies and other salary and pension paying entities must apply the new tables from the start (from August), but if they cannot do so immediately, they can correct the values later, by the end of the year.
The order from the Secretary of State for Tax Affairs, Cláudia Reis Duarte, includes tables for two distinct periods.
One applies in August and September, with exceptionally lower rates, to compensate for withholdings made between January and July, when it was not yet possible to consider the reduction of IRS rates from the 1st to the 8th bracket approved by parliament this month.
The second set of tables concerns the months of October, November, and December, reflecting the final version of the IRS. In these last three months of the year, the rates are higher than those of August and September but lower than the current ones.
The safeguard that allows corrections (if the paying entities do not apply them yet) only concerns the values of August and September.
In the order, the Secretary of State foresees that “in situations where the withholdings on dependent work income and pensions paid or made available between August 1 and September 30, 2025, have not been made according to the tables provided for in No. 2 [of the order], the entity responsible for withholding can proceed with correction in the withholdings to be made in the following months, up to December 2025, inclusive.”
In statements to Lusa regarding the new tables, Cláudia Reis Duarte had already noted that the expectation was that pensioners could see this reduction reflected as early as August.
In September, besides the usual pension, pensioners receiving up to 1,567.5 euros gross monthly will receive an extraordinary supplement, which varies depending on the pension amount, and can be 100, 150, or 200 euros.
This supplement will not be subject to withholding at the source, as the Government decided to exclude it from the monthly charge.
In the decree-law that created the supplement, published in Diário da República on July 18, it is expressly stated that the amount “is not subject to withholding at the source for personal income tax.” At the same time, it is also safeguarded that it “is unseizable” and “does not count for the calculation of the solidarity supplement for the elderly.”
