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The lowest pensions will have an extraordinary increase of 10 euros or 6 euros from August of next year. The measure is foreseen in the State Budget proposal for 2021 (OE2021) delivered this Monday, September 12 to the Assembly of the Republic. The PCP and the Left Bloc, the main drivers of the increase in lower pensions, wanted the measure to take effect from January 2021.
“The extraordinary update is made for the amount of 10 euros per pensioner, whose overall pension amount is equal to or less than 1.5 times the value of the social assistance index (IAS), or six euros for pensioners who receive at least a pension whose fixed amount has been updated in the period between 2011 and 2015 ”, says the bill. In other words, pensions below 1.5 IAS will have an extraordinary increase after what has been verified in recent years. “The value of the periodic annual update, carried out in January 2021, is incorporated into the value of the extraordinary update foreseen in the previous number”, explains the document.
The value of the NIC is 438.81 euros this year, but it should be updated next year.
The social security, disability and old-age and survival pensions granted by Social Security and the convergent social protection pension, granted by the Caixa Geral de Aposentações (CGA), are covered by the extraordinary update.
This is the fourth year in which lower-value pensions have increased dramatically, with the aim of compensating pensioners with lower-value pensions that have not had updates on the reforms between 2011 and 2015.
In 2020, the extraordinary increase began to be paid in May and covered a total of 1.9 million pensioners. The Ministry of Labor, Solidarity and Social Security recorded an annual expenditure of 120 million euros with the measure.
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