Government reiterates that the “normal” increase in pensions is not yet known – Employment

A statement by Rosário Palma Ramalho in the State Budget debate, on Friday, launched some confusion about January pensions update. It is to this amount that additional increases in various opposition proposals can be applied.

What the minister responsible for Social Security told deputies is that the Government’s forecast for an increase in social support index (IAS) is 3.1%a value that under the law also applies to most pensions (up to approximately one thousand euros).

On the same day, an official source from the Ministry of Labor clarified that the forecast is based on the inflation projection contained in the State Budget, that is, the HIPC.

But, as we explained here, this is not the indicator that counts (but rather the average CPI without housing) and, on the other hand, what counts is the value known in November or December, as the Minister of Finance ended up recognizing, in the end of that day.

“Of course, updating pensions will follow what is the law, what follows from the law and, therefore, the value will be known with inflation in November“, Joaquim Miranda Sarmento told deputies.

The PS has said that it estimates the update to be around 2.5%. Business calculations, based on October inflation, point to a value close to 2.53%, but this number can still evolveespecially because the indicator has fallen.

This Wednesday, upon leaving the social consultation, a journalist asked the minister if she was sticking to the announcement of a 3.1% increase in pensions.

“I didn’t make this announcement“, replied the minister, adding that she was referring to the extraordinary additional pension that the Executive depends on the evolution of the budget situation.

“As for the normal update of pensions, which is also an increase, it is provided for in the law and the Government will carry out this update according to the usual criteria“, these.

The PS has argued that if the calculations are based on 3.1% then there will probably be an overestimation of expenditure. In other words, a new “break”.