On Friday in Parliament, the Minister of Labor announced that the lowest pensions are expected to see a 2.79% increase in 2026, and the provision of an extraordinary supplement, similar to this year’s, will depend on budgetary leeway.
During the hearing on the State Budget for 2026 (OE2026), the minister reaffirmed that the government will “proceed with pension increases at the legal rate” and, “if there is budgetary leeway,” grant a new extraordinary supplement to pensioners with lower pensions.
How much will pensions increase?
Palma Ramalho stated that, based on the “latest data” from INE, the lowest pensions, that is, up to two IAS (equivalent to 1,045 euros), “are expected to have a 2.79% increase, or 0.5 points above the 2025 inflation.” According to the minister, this update will cover about 90% of pensioners.
In response to Socialist deputy Miguel Cabrita, the minister remarked that pensions between 2 and 6 IAS (between 1,045 euros and 3,135 euros) “should see an increase of 2.29%, equating to the inflation rate,” thus making the update “neutral in terms of purchasing power.”
“Only pensions above 6 IAS are expected to be 0.25% below inflation“, resulting in a loss of purchasing power, the minister admitted, while highlighting that “these pensions account for 1% of the pensions in Portugal.”
The Minister of Labor revealed that “pensions up to twice the Indexante dos Apoios Sociais (IAS) are expected to increase by 2.79%, or 0.5 points above the 2025 inflation rate.”
Beatriz Vasconcelos | 10:13 – 07/11/2025
Questioned by the same deputy about the CES’s opinion, which advocates a permanent increase in pensions instead of isolated measures, Palma Ramalho stated that the government “disagrees with the principle” and insists on updating pensions according to the legal formula.
“We have to protect all pensions. […] This means that the budget must be, from this perspective, a careful budget that does not jeopardize the sustainability of public accounts, particularly not endangering the sustainability of all pensions, including future workers’ pensions,” she noted.
According to the minister, in addition to the 640 million euro increase in Social Security pensions, “300 million euros correspond to the increase in Caixa Geral de Aposentações pensions,” totaling a permanent increase of 940 million euros for all pensioners.
Solidarity Supplement for the Elderly (also) increases
The minister also mentioned that these amounts include the cost of the increase in the solidarity supplement for the elderly, valued at 120 million euros, resulting in a permanent increase exceeding one billion euros in 2026.
Several parties have already submitted proposals for a permanent pension increase, including Chega and the PCP. Specifically, regarding the communists’ proposal for a permanent 5% increase, the minister described the expenditure as “unaffordable,” reaching 4 billion euros.
