Pensions up to 1,567.50 euros will receive an ‘extra’ supplement next September. This announcement was made by Prime Minister Luís Montenegro during the State of the Nation debate, and the measure has already been promulgated by President Marcelo Rebelo de Sousa and published in the Diário da República.
The supplement will be paid only once, not constituting a permanent increase in pensions, and may range between 100 and 200 euros.
It will amount to 200 euros for pensions up to 522.50 euros, 150 euros for pensions between 522.50 euros and 1,045 euros, and 100 euros for all pensions between 1,045 and 1,567.50 euros.
This supplement covers pensioners from Social Security, Caixa Geral de Aposentações (CGA), and the banking sector, totaling two million and 300 thousand pensioners.
According to the decree-law, “the supplement is non-seizable,” meaning it cannot be retained for debt payment.
The supplement is not subject to withholding tax (meaning the net amount each pensioner receives is the gross amount) and does not count towards the calculation of the amount of the Elderly Solidarity Supplement.
However, for final IRS calculation, the amount will count as income, adding up to the other values for the application of IRS rates.
The paying entities are the Instituto da Segurança Social and Caixa Geral de Aposentações. In the case of pensions from the banking sector, Finanças transfers the amount to the paying entities after validation by the Inspeção-Geral de Finanças.
The Government will approve a new extraordinary supplement for all pensions up to 1,567.50 euros, ranging from one hundred to two hundred euros, to be paid in September, announced the prime minister today.
Lusa | 15:30 – 17/07/2025
Extra Supplement for Pensions “Will Cost 400 Million Euros”
At the press conference after last Thursday’s Council of Ministers, Finance Minister Joaquim Miranda Sarmento stated that the extraordinary supplement for pensioners will cost approximately 400 million euros but does not compromise public accounts, as the budgetary situation is “robust”.
“The supplement will cost 400 million euros, we prefer this redistribution mechanism to a permanent increase in pensions because it generates rigid structural expenditure,” he pointed out.
On the same occasion, Miranda Sarmento explained how the supplements will be treated fiscally at the two moments: retention and tax settlement.
“This supplement, like all income from all sources, is then aggregated for IRS purposes, this could not be otherwise. It will not, however, have withholding at the source. Also because much of these pensioners, given their low level of pensions, do not pay IRS, so we decided to exempt this supplement from source withholdings,” explained the government official.
The Finance Minister announced today that the extraordinary supplement for pensioners will cost approximately 400 million euros but does not compromise public accounts, as the budgetary situation is “robust”.
Lusa | 15:56 – 18/07/2025
The allocation of this supplement “is not accounted for the allocation of the Elderly Solidarity Complement (CSI) and does not require any request from the beneficiaries,” clarified the Ministry of Labor, Solidarity, and Social Security in a statement sent after the Council of Ministers’ briefing.
