The Government has approved this Thursday the decree that regulates the extraordinary updating of pensions, at 10 euros per month, after the entry into force of the State Budget Law (OE) for 2022, said the Minister of the Presidency.
At a press conference after the Council of Ministers, Mariana Vieira da Silva said that “The decree that regulates the extraordinary update of pensions was approvedafter the entry into force of the OE law for 2022″.
“This extraordinary update”, he recalled, “similar to those carried out by the previous Government, since 2017, provides for an increase of 10 euros per month to the value of the pension to be granted to the pensioner, in order to increase the income of the pensioners of the lowest pensions”.
On May 23, the parliament approved the extraordinary update of up to 10 euros for pensioners who receive up to 1,108 euros, an amount that will be paid with the entry into force of OE2022 and retroactively to January.
“In 2022, the Government will carry out an extraordinary update of pensions, with effect from January 1, 2022,” establishes the budget proposal.
According to the document, “the extraordinary update is carried out for an amount of 10 euros per pensioner, whose total amount of the pension is equal to or less than 2.5 times the value of the social support index (IAS)”, that is, up to 1,108 euros.
The value of the ordinary annual update, carried out in January, is incorporated into the value of the extraordinary update.
“The retroactive payments that are paid or made available to pensioners, due to the extraordinary update provided for in this article, are subject to regional withholding, and for the purposes of calculating the Personal Income Tax (IRS) withheld , they will be added to the pensions of the months in which they are paid or made available, ”says the document.
According to the initiative, the withholding rate to be applied to retroactive payments “is the one that corresponds to the value of the pensions of the month in which they are paid or made available.”
The extraordinary increase is expected to reach around two million pensioners and cost some 200 million euros, according to the executive.
In 2021, the extraordinary increase was paid to pensioners who receive up to 658 euros (1.5 IAS).
Source: Observadora
