The 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 value 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 tax 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%.
In response to Lusa, an official source from the Ministry of Labor, Solidarity and Social Security stated that «the pensions that will be paid by Social Security, on January 08, 2024, were processed in accordance with the new retention tables already published» .
Furthermore, adds the same official source, on January 08th, pension increases for 2024 will also be “guaranteed”, which translate into a 6,0% increase in pensions up to 1.018,52 euros; 5,6% for pensions between 1.018,52 and 3.055,56 euros and 5,0% for pensions between 3.055,56 and 6.111,12 euros.
The combination of this increase with the new retention tables dictates that from January a pension of 1.150 euros gross in 2023 will increase in 2024 to 1.214 euros, at the same time that the IRS withholding drops from 117,64 euros in 2023 to 73,61 .XNUMX euros this year.
The new tables follow the model adopted from the second half of 2023, which is similar to the final tax settlement and meets the progressiveness of the tax, preventing increases in gross income (as happens with the updating of pensions and increases in wages) may result in a lower pension or net remuneration value.
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