EY consultancy calculations take into account the regular increase in pensions in 2025, to which is added 1.25 percentage points in pensions up to three Social Support Indexes (around 1,567 euros) that the PS included in the State Budget for 2025 (OE2025) and also, on the IRS side, the impact of the increase in the specific deduction and the updating of the levels and minimum existence, assuming an amount of 250 euros in general family expenses.

Based on these assumptions, a pension of 870 euros gross in 2024 increases to 903 euros, which will translate into an increase in the gross income of 468.9 euros, for a total of 12,648.93 for the year 2025 as a whole.

In net terms, this pensioner's annual net income will increase from 11,785.75 euros in 2024 to 12,429.47 euros in 2025, which reflects an increase of 643.72 euros.

This net value exceeds by a few euros the increase in income that a pensioner who receives a pension of 1,500 euros will have, according to the same simulations.

In this case, the retiree will have an increase in net income of €620.43 for the whole of 2025 in relation to the amount he will receive in 2024. The gross €735 that will come through the pension update contributes to this increase (regular and additional) and the impact of the various measures at the IRS level.

In the case of pensions of €2,500 and €3,500 gross in 2024, the increase in net income will be, respectively, €691.47 and €903.44 in 2025.

The full extent of these impacts should only be felt after submitting the annual Income Tax declaration since, as a rule, IR withholding cannot fully anticipate the effect of all tax changes and deductions presented by taxpayers.