Pensions will rise four-tenths more than initially expected due to higher-than-expected inflation, Negócios reported. The figures were confirmed this Wednesday by the Ministry of Labour, Solidarity and Social Security (MTSSS).
“The government will update the values of the pension increases against the final values of inflation for 2022,” MTSSS notes in a statement, adding that the values of the pension increases in January 2023 will be: 4.83% for pensions. Up to 2 IAS [Indexante de Apoios Sociais] (Including); 4.49% for annuities between 2 and 6 IAS and 3.89% for annuities between 6 and 12 IAS.
According to a note from Ana Mendez Godinho’s office, “This modernization has an additional cost of 110 million euros, in addition to the 1,155 million already foreseen.”
In the case of a pension of 500 euros, for example, about 24.2 euros will be increased. The difference guaranteed by the correction compared to what has already been announced by the government is 2.7 euros per month.
The International Accounting Index also rises with inflation
“The increase will be 8.4%, from 443.20 euros to 480.43 euros,” the MTSSS statement said.
The IAS serves as a reference for updating various social benefits, such as social inclusion income or unemployment benefit.
There are many benefits and supports that rely on international accounting standards, whether to determine amounts paid by Social Security or the realm of those who qualify for various measures. The index also counts in determining who is exempt from paying the IRS, though it is tied to another threshold, the national minimum wage, which ends up being overweight because it’s higher.
The IAS also counts towards court access guarantees, where legal aid amounts are determined based on income thresholds established with reference to the index. It still weighs, for example, on party financing🇧🇷 You receive these public scholarships on the basis of votes received, but in a fraction of the IAS.
(News updated at 19:20 with more information)
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