Most pensions will increase by 3.9% in January. 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 these numbers have now been confirmed. At stake is an increase of 2.6% resulting from economic growth and inflation, in addition to an extraordinary increase of 1.25 percentage points that Parliament approved.

By law, there are two indicators that dictate which updates must be applied in January of each year to pensions: the average growth in Gross Domestic Product (GDP) over the last two years and the average variation over the last 12 months in the Consumer Price Index (IPC).

According to ECO's calculations, the lowest pensions (up to 1,045 euros) will have 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%. Higher pensions (above €3,135) will have an adjustment of 1.85%.

And for the first time, pensions granted this year (i.e. in the year before the regular updates were applied) will also have access to these increases.

But these will not be the only increases that retirees will be entitled to at the beginning 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) have an extraordinary reinforcement of 1.25 percentage points.

This means that the lowest pensions will increase by 3.9%. Pensions above €1,045 but below €1,567 will increase by 3.35%. For other reforms, only the aforementioned regular increases resulting from inflation and economic growth apply.

It is important to note that the PSD and CDS-PP saw a proposal approved, within the scope of the State Budget for 2025, which opens the door for pensioners to also have the right to an extraordinary supplement (in addition to the regular increases and the extraordinary increase PS), if public accounts allow.