Social Security will disburse pensions this Friday, August 8, which will already be processed according to the new IRS withholding tables, resulting in a higher net pension this month.
“Both Social Security and Caixa Geral de Aposentações will apply the new tables in August itself,” confirmed an official source from the Ministry of Labor, Solidarity and Social Security (MTSS) when asked about the timing for these entities to implement the new rates.
Unlike last summer, when Social Security and CGA couldn’t apply the new tables immediately after the new withholdings were announced, the two entities aim to pay the upcoming pensions according to the new withholdings.
The news is that both Social Security and Caixa Geral de Aposentações (CGA) will process August pensions according to the new IRS withholding tables, resulting in a higher net pension this month.
Beatriz Vasconcelos | 08:01 – 07/08/2025
In 2024, taxes were also reduced mid-year, and when the Government released the new tables at the end of August, with new values taking effect in September, Social Security and CGA had already processed the next month’s pensions. Consequently, they applied the new rates only in October, making necessary adjustments for September’s pensions. This time, the forecast is different.
What changes?
According to the Government’s order published on the Finance Portal, companies and other paying entities are required to apply the new tables from the start (beginning in August), but if they can’t do it immediately, they can adjust the amounts later, before the end of the year.
The order by the Secretary of State for Tax Affairs, Cláudia Reis Duarte, includes tables for two distinct periods.
One set applies to August and September, with exceptionally lower rates, to compensate for withholdings between January and July, when it wasn’t yet possible to account for the IRS rate reduction from the 1st to 8th bands approved by parliament this month.
Another set of tables pertains to October, November, and December, reflecting the final IRS version. In these three months, the rates are higher than those in August and September but lower than the current ones.
The safeguard allowing rectification of withholdings (should payers not apply them immediately) only pertains to values for August and September.
The order predicts that “in situations where withholding on dependent work income and pensions paid or made available between August 1 and September 30, 2025, haven’t complied with the tables stipulated in clause 2 [of the order], the entity responsible for withholding may rectify the withholdings to perform in the following months, up to December 2025, inclusive.”
In statements about the new tables, Cláudia Reis Duarte noted that the expectation was for pensioners to see this reduction reflected as early as August.
In September, in addition to the usual pension, pensioners earning up to 1,567.5 euros gross monthly will receive an extraordinary supplementary payment that varies based on the pension value, reaching 100, 150, or 200 euros.
This supplementary payment won’t be subject to withholding, as the Government decided to exclude it from monthly deductions.
The decree-law establishing the supplement, published in the Official Gazette on July 18, explicitly states the amount “is not subject to withholding under individual income tax.” It also ensures that it “is not subject to seizure” and “does not affect the calculation of the elderly solidarity supplement.”
