According to ECO’s calculations and the government’s information, the 2.8 per cent increase in the lowest pensions is confirmed.
The same media outlet reveals that, according to the law, pensions must be updated in January, based on the average growth in Gross Domestic Product (GDP) over the last two years and the average annual variation in the Consumer Price Index (CPI), excluding housing.
According to the published table, pensions up to €1,047.26 will be updated by 2.8 per cent in January. According to Labour Minister Maria do Rosário Palma Ramalho, the majority of pensioners fall into this bracket.
For pensions between €1,074.26 and €3,222.78, the increase will be 2.27 per cent. For pensions above €3,222.78, an increase of 2.02 per cent is planned. Those receiving pensions above €6,445.56 will not receive any increase.
According to the ECO, the approved decree states that pensions granted to those suffering from accidents at work will also be updated “to the value resulting from the application of the 2.80% increase percentage”.
Other increases
The Social Support Index (IAS) will also rise, according to the same government decree, to €537.13, to be applied from January.
This update will also have an impact on unemployment benefit limits. In other words, the maximum amount of unemployment benefit, which corresponds to 2.5 times the IAS, will increase from €1,306.25 to €1,342.83, according to ECO.
Aid for the elderly
As planned in the State Budget for 2026, the government has also increased the Solidarity Supplement for the Elderly (CSI).
“The reference value of the solidarity supplement for the elderly referred to in Article 9(1) of Decree-Law no. 232/2005, of 29 December, in its current wording, is set at €8,040.00,” reads the decree, quoted by ECO.
As a result, in 2026, the reference value of the CSI will be €670, an increase of €40 compared to the value applied in 2025.