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Inflation. PSD proposes to extend support of 125 euros to pensioners and keep the law in force in 2023

The PSD wants to extend to pensioners the support of 125 euros that the Government will give to active citizens in October, and keep the legal regime for updating pensions in force for 2023.

The PSD delivered this Monday in parliament proposals for modification, to be debated in the specialty, to the Government diploma that determines the coefficient for updating income for 2023, reduces VAT on electricity supply and establishes a transitory regime for updating of pensions.

A the proposed amendments to the PSD focus only on the pension partafter the Social Democrats challenged the Government’s solution, which involves granting pensioners an extraordinary supplement equivalent to half pension, paid in October, and increases in 2023 between 3.53 and 4.43%, lower than expected according to the current calculation formula.

As an alternative, the PSD intends to extend “to pensioners with gross income up to 37,800 euros” the extraordinary aid of 125 euros that the State intends to pay in October to active citizens with identical incomes.

On the other hand, the PSD eliminates the transitional regime for updating pensions proposed by the Government and reestablishes “compliance with the current legal regime in terms of updating pensions.”

Until December 31, 2022, the Government will update, for 2023, the value of the pensions granted by the social security system, as well as the pensions of the convergent social protection system granted by the Caixa Geral de Aposentações, in the terms and conditions of the current legislation”, says the proposal.

In this way, the Social Democrats justify in the note that accompanies the proposed amendments, “the cut of 1 billion euros permanently imposed by the Government from 2023” is annulled.

On Friday, parliament approved the Government’s bill in general with votes in favor of the PS, abstentions from PSD, Chega, PAN and Livre and votes against IL, PCP and BE, which will now be debated on Wednesday in the specialty in the Committee on Budget and Finance, with the aim of returning to plenary on Thursday for the final global vote.

The Government’s proposal establishes a transitory regime for updating pensions in 2023, with increases between 4.43% and 3.53% depending on the amount earned by pensioners, after the Executive already approved by decree-law the payment of an extraordinary supplement, already in October, equivalent to half board.

THE The opposition has accused the Government of cheating and applying cuts to future pensions because it is reducing the base on which the 2024 increase will be madecompared to what would happen if the pension update law were applied in 2023.

The Government has said that this solution will ensure that the formula is fully applied next year and that the sustainability of Social Security will also be safeguarded.

The bill also includes the ‘brake’ on rents, which in 2023 will have a rise limited to 2%, covering the measure to all tenants with contracts signed until December 2022. As a counterpart to this limitation on the rise in rents, rental income, landlords will receive compensation from the IRS or IRC, as provided in the proposal, by seeing a portion of rental income excluded from tax.

The third measure of the diploma aimed at mitigating the impact of price increases on household income is the reduction of VAT on electricity from the current 13% to 6% for consumption of up to 100 kWh per month (150 kWh in the case of large families) for periods of 30 days and power meters of less than 6.9 kVA.

Source: Observadora

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