"For example, an unmarried pensioner with a pension of 900 euros per month will see his withholding tax reduced by 49%, corresponding to an increase in net income of 25 euros per month", reads a statement from the government.

Pensions that will be paid by Social Security in January were processed in accordance with the new IRS withholding tables, an official source from the Ministry of Labor told Lusa.

The pension amount that Social Security retirees will receive on January 8th will reflect the increases between 6.0% and 5.0% resulting from the update formula and also the new IRS monthly withholding tables that accommodate the several changes to the tax included in the State Budget for 2024 (OE2024).

The IRS withholding tables in force in 2024 were published in Diário da República on December 29th, with the new value ranges and rates being designed to reflect the increase in the new minimum existence (IRS-exempt value ) to 820 euros, the reduction of tax rates in the first five brackets and the updating of bracket limits by 3%.