The Minister guarantees an increase in pensions from 5.2% to 6.2 in 2024

Next year, pensions are due to increase by 6.2% for the lowest levels and 5.2% for higher pensions, the Minister of Labour, Solidarity and Social Security said on Wednesday.

Ana Mendes Godinho spoke at a press conference for the presentation of the 2024 social security budget at the Ministry of Labor in Lisbon.

According to the minister, preliminary data indicates an increase in pensions of 6.2% to around 1,020 euros, 5.8% for pensions between 1,020 and 3,061 euros and 5.2% for pensions above the latter value.

Ana Méndez Godinho said that these are preliminary values ​​that will then be confirmed by the latest forecasts that affect the calculations provided for in the law, namely inflation and economic growth.

The pension renewal will have an effect of “more than 2,200 million euros,” the minister said. At the first level of reforms there are about 2.5 million pensions, at the second level about a million reforms, and at the last level about 100 thousand, the minister explained.

As the example shows, a pension of 500 euros in 2023 will increase by approximately 31 euros per month, and a pension of 1000 euros will increase by approximately 62 euros.

“This means that from the point of view of increasing pensions since 2015, the dynamics of pensions represents an increase in the average pension by 29.4%,” the minister emphasized.

Ana Mendes Godinho also expressed hope that the commission created to assess the sustainability of social security and other sources of funding will present its report in January.

When asked whether the formula for calculating pension updates could change in 2025, the minister replied that she would wait for the commission’s findings.

“As for the formula, our goal is to maintain confidence in the system, naturally we are waiting for the conclusions of the commission, which asked for more time to evaluate (…), we are waiting for the report and decisions,” he responded.