The legal mechanism for updating pensions will lead to an increase in pensions next year, with the minister already confirming increases of 2.79% for the lowest pensions. Calculations show that the increases can reach a maximum of up to 127 euros per month.
The calculations
On Friday, the Minister of Labor stated in Parliament that the lowest pensions should have a 2.79% increase in 2026 and that the assignment of an extraordinary supplement, similar to what happened this year, will depend on the budgetary margin.
- Pensions up to 1,045 euros increase by 2.79%
Furthermore, Palma Ramalho indicated that, based on the “most recent data” from INE, the lowest pensions, that is, up to two IAS (equivalent to 1,045 euros), “should have an increase of 2.79%, which is 0.5 points above the 2025 inflation”. According to the minister, this update covers about 90% of pensioners.
The IAS this year stands at 522.5 euros, so a pension of this value increases to 537 euros. Meanwhile, a pension of 1,045 euros will increase to 1,074.15 euros.
- Pensions between 1,045 euros and 3,135 euros increase by 2.29%
The minister also stated that the increase for pensions between 2 and 6 IAS (between 1,045 euros and 3,135 euros) “should have an increase of 2.29%, which is equal to inflation”, so the update is “neutral in terms of purchasing power”.
In this case, a pensioner earning 3,135 euros will receive 3,206.79 euros starting in 2026.
- Pensions above 3,135 euros and up to 6,270 euros increase by 2.04%
On the other hand, the minister explained that “only pensions above 6 IAS will remain 0.25% below inflation”, which means losing purchasing power, the minister admitted, noting, however, that “these pensions account for 1% of pensions in Portugal”.
According to the calculations reported by CNN Portugal, this means an increase of 2.04%.
A pensioner who receives, for example, 6,000 euros per month, will receive an additional 122.4 euros, or approximately 6,122.4 euros per month.
- Pensions above 6,270 euros will not see an increase
This is the limit, so, taking this value as an example, the increase for a pensioner receiving a 6,270-euro pension is 127 euros, and they will receive 6,397 euros per month.
During the hearing on the discussion of the draft State Budget for 2026 (OE2026) on Friday, the minister reiterated that the Government will “proceed with the pension increase at the legal rate” and “if there is a budgetary margin”, assign a new extraordinary supplement. What are the values in discussion?
Beatriz Vasconcelos with Lusa | 08:10 – 10/11/2025
Permanent pension increase?
Questioned by the same deputy about the CES opinion, which advocates for a permanent increase in pensions instead of occasional measures, Palma Ramalho stated that the Government “disagrees with the principle” and insisted on updating pensions following the legal formula.
“We have to protect all pensions. […] This means the budget must be, from that point of view, a cautious budget that does not jeopardize the sustainability of public accounts and, specifically, does not jeopardize the sustainability of all pensions, including the future pensions of workers,” she pointed out.
According to the minister, to the 640-million-euro increase in Social Security pensions, “300 million euros corresponding to the increase of Caixa Geral de Aposentações pensions” must be added, totaling a 940-million-euro permanent increase for all pensioners.
