January Social Security benefits will be paid using new IRS tax schedules. The pension amount will reflect an increase of 6.0% to 5.0%.

Pensions that will be paid by Social Security in January have been processed according to new IRS withholding tables, a Labor Department official told Luse.

The pension amount Social Security retirees will receive on Jan. 8 will reflect a 6.0% to 5.0% increase as a result of the updated formula as well as new monthly IRS withholding tables that account for several tax changes included in the 2024 state budget . (OE2024).

The IRS income tax tables effective in 2024 were published in Diário da República on December 29. tax rates in the first five groups and updating group limits by 3%.

In response to Lusa, an official source at the Ministry of Labour, Solidarity and Social Security stated that “pensions that will be paid by the Social Security Service on January 8, 2024 have been processed in accordance with the new withholding tables already published.”

In addition, the same official source adds, on January 8, a pension increase will also be “guaranteed” in 2024, which will lead to a 6.0% increase in pensions to €1,018.52; 5.6% for pensions from 1018.52 to 3055.56 euros and 5.0% for pensions from 3055.56 to 6111.12 euros.

The combination of this increase with the new withholding tables means that from January a pension of €1,150 gross in 2023 will increase in 2024 to €1,214, while IRS withholdings will fall from €117.64 in 2023 to €73.61 in this year. year.

The new tables are in line with the model adopted from the second half of 2023, which is similar to the final tax calculation and is consistent with the progressivity of the tax, preventing increases in gross income (as occurs with pension renewals and salary increases) which could result in a lower pension or net income. rewards.