Lower pensions are expected to increase by 2.79% next year.

The Minister of Labor stated today in parliament that the lowest pensions should see a 2.79% increase in 2026 and that the allocation of an extraordinary supplement will depend on budgetary availability.

During the hearing as part of the specialized discussion of the 2026 State Budget (OE2026), the minister reiterated that the Government will "proceed with the increase of pensions at the legal rate" and, "if there is budgetary leeway," grant a new extraordinary supplement to pensioners with lower pensions.

Palma Ramalho also indicated that, based on the “most recent data” from the INE (National Institute of Statistics), the lowest pensions, that is, up to two IAS (the equivalent of 1,045 euros), “should have an increase of 2.79%, or 0.5 points above the 2025 inflation rate”. According to the minister, this update covers about 90% of pensioners.

In response to Socialist MP Miguel Cabrita, the minister also said that the increase in pensions between 2 and 6 IAS (between 1,045 euros and 3,135 euros) "should have an increase of 2.29%, that is, equal to inflation", so the update is "neutral in terms of countervailing power".

"Only pensions above 6 times the IAS (Social Support Index) are expected to fall 0.25% below inflation," meaning they will lose purchasing power, the minister admitted, while emphasizing that "these pensions represent 1% of all pensions in Portugal."

When questioned by the same deputy about the CES opinion, which advocates a permanent increase in pensions instead of one-off measures, Palma Ramalho said that the Government is "at odds with the principle" and insisted on updating pensions following the legal formula.

"We have to protect all pensions. [...] This means that the budget has to be, from this point of view, a careful budget that does not jeopardize the sustainability of public finances and, in particular, does not jeopardize the sustainability of all pensions, including the future pensions of workers," he pointed out.

According to the minister, the €640 million increase in Social Security pensions should be added to “€300 million corresponding to the increase in pensions from the Caixa Geral de Aposentações (General Pension Fund)”, making a total of €940 million in permanent increases for all pensioners.

The minister also noted that these figures are in addition to the expense of increasing the solidarity supplement for the elderly, amounting to 120 million euros, which translates into a permanent increase of over one billion euros in 2026.

Some parties have already presented proposals for changes aimed at moving forward with a permanent increase in pensions, including Chega and PCP. Specifically regarding the communists' proposal, which suggests a permanent 5% increase, the government official said that the expense is "unbearable," amounting to 4 billion euros.

The Minister of Labor stated today in parliament that the lowest pensions should see a 2.79% increase in 2026 and that the allocation of an extraordinary supplement will depend on budgetary availability.

During the hearing as part of the specialized discussion of the 2026 State Budget (OE2026), the minister reiterated that the Government will "proceed with the increase of pensions at the legal rate" and, "if there is budgetary leeway," grant a new extraordinary supplement to pensioners with lower pensions.

Palma Ramalho also indicated that, based on the “most recent data” from the INE (National Institute of Statistics), the lowest pensions, that is, up to two IAS (the equivalent of 1,045 euros), “should have an increase of 2.79%, or 0.5 points above the 2025 inflation rate”. According to the minister, this update covers about 90% of pensioners.

In response to Socialist MP Miguel Cabrita, the minister also said that the increase in pensions between 2 and 6 IAS (between 1,045 euros and 3,135 euros) "should have an increase of 2.29%, that is, equal to inflation", so the update is "neutral in terms of countervailing power".

"Only pensions above 6 IAS are expected to fall 0.25% below inflation," meaning they will lose purchasing power, the minister admitted, while emphasizing that "these pensions represent 1% of all pensions in Portugal."

When questioned by the same deputy about the CES opinion, which advocates a permanent increase in pensions instead of one-off measures, Palma Ramalho said that the Government is "at odds with the principle" and insisted on updating pensions following the legal formula.

"We have to protect all pensions. [...] This means that the budget has to be, from this point of view, a careful budget that does not jeopardize the sustainability of public finances and, in particular, does not jeopardize the sustainability of all pensions, including the future pensions of workers," he pointed out.

According to the minister, the €640 million increase in Social Security pensions should be added to “€300 million corresponding to the increase in pensions from the Caixa Geral de Aposentações (General Pension Fund)”, making a total of €940 million in permanent increases for all pensioners.

The minister also noted that these figures are in addition to the expense of increasing the solidarity supplement for the elderly, amounting to 120 million euros, which translates into a permanent increase of over one billion euros in 2026.

Some parties have already presented proposals for changes aimed at moving forward with a permanent increase in pensions, including Chega and PCP. Specifically regarding the communists' proposal, which suggests a permanent 5% increase, the government official said that the expense is "unbearable," amounting to 4 billion euros.

The Minister of Labor stated today in parliament that the lowest pensions should see a 2.79% increase in 2026 and that the allocation of an extraordinary supplement will depend on budgetary availability.

During the hearing as part of the specialized discussion of the 2026 State Budget (OE2026), the minister reiterated that the Government will "proceed with the increase of pensions at the legal rate" and, "if there is budgetary leeway," grant a new extraordinary supplement to pensioners with lower pensions.

Palma Ramalho also indicated that, based on the “most recent data” from the INE (National Institute of Statistics), the lowest pensions, that is, up to two IAS (the equivalent of 1,045 euros), “should have an increase of 2.79%, or 0.5 points above the 2025 inflation rate”. According to the minister, this update covers about 90% of pensioners.

In response to Socialist MP Miguel Cabrita, the minister also said that the increase in pensions between 2 and 6 IAS (between 1,045 euros and 3,135 euros) "should have an increase of 2.29%, that is, equal to inflation", so the update is "neutral in terms of countervailing power".

"Only pensions above 6 IAS are expected to fall 0.25% below inflation," meaning they will lose purchasing power, the minister admitted, while emphasizing that "these pensions represent 1% of all pensions in Portugal."

When questioned by the same deputy about the CES opinion, which advocates a permanent increase in pensions instead of one-off measures, Palma Ramalho said that the Government is "at odds with the principle" and insisted on updating pensions following the legal formula.

"We have to protect all pensions. [...] This means that the budget has to be, from this point of view, a careful budget that does not jeopardize the sustainability of public finances and, in particular, does not jeopardize the sustainability of all pensions, including the future pensions of workers," he pointed out.

According to the minister, the €640 million increase in Social Security pensions should be added to “€300 million corresponding to the increase in pensions from the Caixa Geral de Aposentações (General Pension Fund)”, making a total of €940 million in permanent increases for all pensioners.

The minister also noted that these figures are in addition to the expense of increasing the solidarity supplement for the elderly, amounting to 120 million euros, which translates into a permanent increase of over one billion euros in 2026.

Some parties have already presented proposals for changes aimed at moving forward with a permanent increase in pensions, including Chega and PCP. Specifically regarding the communists' proposal, which suggests a permanent 5% increase, the government official said that the expense is "unbearable," amounting to 4 billion euros.