Pensioners who, financially, were forced to ‘do their bit’ during Portugal’s long period of austerity are to have their pensions increased as from August 10th.
The unfreezing of pensions payable to Portugal’s retirees was included in the 2017 State budget but only now is coming through, eight months into the year.
According to the Ministry of Labour and Social Security, “about two million pensioners will be entitled to a rise” which applies to all those who currently receive a pension of under €631.98 per month.
The increases are worth between €6 and €10 a month and according to the Ministry, this extraordinary update aims to “compensate for the loss of purchasing power caused by the suspension of the regime for updating pensions in the period between 2011 and 2015, as well as increasing the income of pensioners with lower pensions.”
The annual cost of the increases will be around €194 million with the increase costing €83 million this year.