Pensions of up to €1,074 to rise by 3.3% in January 2027, government estimates. Exact figure due in mid-December
In January 2027, pensions of up to two IAS, that is up to €1,074.26 a month, will rise by 3.3% if inflation stays where it is until the end of the year. That covers 90% of all pensions. The Secretary of State for Social Security, Susana Filipa Lima, gave the estimate during the budget debate in parliament (Observador).
The IAS is a social index used to calculate many benefits and the income thresholds for them. It currently stands at €537.13 and will rise by the same 3.3%, to about €554.86 in 2027.
Pensions are updated according to a formula set by law: inflation plus an extra amount that depends on economic growth over the past two years. This time smaller pensions get half a percentage point above inflation: with inflation at 2.79%, that comes to 3.3%. Pensions between two and six IAS (from €1,074.26 to €3,222.78) will rise exactly in line with inflation, by 2.79%. Higher pensions will rise by less, about 2.54% according to calculations by the newspaper ECO (ECO).
Provisional figures will be available at the end of November, and final ones in mid-December, when the statistics institute INE publishes November's inflation. On top of the usual increase, the finance minister, Joaquim Miranda Sarmento, promised to pay smaller pensions a one-off supplement again if the budget allows.
