OE2021: Increase of 10 euros in pensions in January costs 270 million euros

The Minister of State and Finance, João Leão, said today in parliament that the extraordinary increase in pensions negotiated with the PCP, in the amount of 10 euros, to take place already in January, will cost 270 million euros.

António Cotrim / LUSA

“In 2021, for the first time in recent years, the increase will be 10 euros for all pensions up to 1,5 IAS [Social Support Index] and covers almost two million pensioners. It will be the measure with the greatest impact on the permanent expenditure of the budget for 2021, with an annual cost of 270 million euros ”, said João Leão at the opening of the second day of debate in general of the Government's proposal for the State Budget for 2021.

In a speech that was practically the same as last Friday, the official stressed the start of payment of this increase “as early as January, as a result of the commitment assumed with the PCP”.

The Minister of Labor, Solidarity and Social Security confirmed on Monday that pensions up to 1,5 IAS will have an increase of 2021 euros in 10 from January, as resulted from the negotiations with the PCP.

“As a result of the negotiations and dialogue that has been taking place with the PCP, at the moment what we foresee for 2021 is an update of 10 euros for all [pensioners with pensions of value up to 1,5 Social support index] and from January” , said Minister Ana Mendes Godinho during a hearing in parliament.

The minister's statement came in response to questions posed by CDS-PP deputy João Almeida who insisted on knowing the Government's justification for continuing to contemplate with extraordinary increases of different value the pensions that were updated during the Government formed by the PSD and the CDS-PP and those that had no increase in that period.

It is recalled that, since then, the former have had an increase of six euros and the latter by 10 euros, a formula that the 2021 State Budget proposal (OE2021) expected to maintain next year, indicating that the amount would be paid from August onwards.

At the end of last week, at a press conference in which he announced that he will abstain from voting in general for OE2021, the leader of the PCP parliamentary group announced that, during the negotiations, the Government had made a commitment to carry out that update a from January and to increase all pensions by 10 euros, ending the differentiation.

This commitment was revealed by João Oliveira at the press conference, in the Assembly of the Republic, in Lisbon, in which the communist party announced that it will abstain from voting in the generality of the OE2021, which takes place today.

"One of the commitments that the Government admitted was the possibility of introducing this change in the [Budget] proposal and that the increase in pensions will take effect in January and not in August," said the deputy the journalists.

And it would become “a single value [of increase] of 10 euros and not with the difference between six and 10 euros”, he added.

João Oliveira also revealed that the Government admitted, in conversations with the PCP, in addition to the increase of 10 euros for “all pensions up to 685 euros as of January”, the “attribution of the supplement for unhealthy work, hardship and risk for workers in municipalities ”and“ the extension of extraordinary social benefits ”.

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