Calculations made by ECO at the end of November based on provisional data from the National Statistics Institute (INE) already pointed to this increase, and this Wednesday, those figures were confirmed.
At stake is a 2.6% increase resulting from the economy’s growth and inflation, plus an extraordinary 1.25 percentage point increase that parliament approved.
By law, two indicators dictate which updates should be applied to pensions in January each year: the average growth in Gross Domestic Product (GDP) over the last two years and the average variation over the previous 12 months in the Consumer Price Index (CPI) without housing.
Thus, according to ECO’s calculations, the lowest pensions (up to 1,045 euros) will receive regular increases of 2.6%.
Intermediate pensions (between 1,045 euros and 3,135 euros) will be entitled to a regular increase of 2.1%.
The highest pensions (above 3,135 euros) will receive an increase of 1.85%.
For the first time, pensions awarded this year (i.e., the year before the regular updates were applied) will also have access to these increases.
But these won’t be the only increases that pensioners will be entitled to at the start of next year.
The PS proposed, and Parliament approved (against the wishes of the government and the PSD) that pensions up to three times the Social Support Index (IAS) should have an extraordinary increase of 1.25 percentage points.
This means that the lowest pensions will rise by 3.9%.
Pensions above 1,045 euros but below 1,567 euros will rise by 3.35%.
Only the regular increases resulting from inflation and economic growth will apply to the other pensions.
It’s important to note that the PSD and CDS-PP have approved a proposal within the scope of the State Budget for 2025, which opens the door for pensioners to also be entitled to an extraordinary supplement (in addition to the regular increases and the PS’s extraordinary increase) if the public accounts allow it.
The figures released on Wednesday also show how high the IAS will be in 2025, rising from the current 509.26 euros to around 522.5 euros.

Translated to English as a community outreach program from the Portuguese Beyond Borders Institute (PBBI) and the Modern and Classical Languages and Literatures Department (MCLL) as part of Bruma Publication and ADMA (Azores-Diaspora Media Alliance) at California State University, Fresno, PBBI thanks Luso Financial for sponsoring NOVIDADES.