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The lowest pensions will again have an extraordinary increase of up to six and 10 euros next year, but only from August, according to a preliminary version of the proposal. State budget for 2021 (OE2021).
In 2021, the Government proceeds to an extraordinary pension update, with effect from August 1”, It establishes the document to which Lusa had access.
According to the preliminary version of OE2021, “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 6 [euros] to pensioners who receive at least one pension whose fixed amount has been updated in the period 2011-2015 ”.
The value of the NIC is 438.81 euros this year, but it should be updated next year.
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As in previous years, this increase of up to six and 10 euros incorporates the amount resulting from the update of pensions that will take place in January, taking into account inflation and economic growth.
The value of the periodic annual update, carried out in January 2021, is included in the value of the extraordinary update.”, It can be read in the preliminary version of the OE2021 proposal.
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.
According to the document, the extraordinary update “is defined in terms to be regulated by the Government.”
This year, the extraordinary increase began to be paid in May, with the entry into force of the State Budget, and covered around 1.9 million pensioners.
The extraordinary update translates into an increase of 10 euros for the 1.3 million pensioners with pensions of up to 1.5 Social Support Indexes (IAS), that is, up to 658.2 euros, and six euros for about 600 thousand pensioners who receive at least one pension whose fixed amount has been updated in the period 2011-2015.
The measure represents an annual expenditure of 120 million euros in 2020, according to a note released at the time by the Ministry of Labor, Solidarity and Social Security.
This is the fourth year in which lower-value pensions have increased dramatically and aims to compensate pensioners with lower-value pensions that have not had updates on the reforms between 2011 and 2015.
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In 2017 and 2018, pensions had an extraordinary increase paid since August and, last year, the measure took effect in January.
This year, OE2020 determined that the payment must be made in the month following the entry into force of the State Budget.
The OE2021 proposal must be delivered by the Government to the Parliament.
