Pensions for September commence payment starting from this coming Monday, accompanied by a linked bonus.

In a move aimed at supporting the elderly, Portugal has announced a bonus for pensioners as part of the September reforms. This bonus will benefit approximately 90% of retired individuals in the country, amounting to over two million pensioners.

The bonus, an extraordinary supplement, will be paid out to pensioners receiving benefits from the Social Security system for invalidity, old age, and survival. The State will spend a substantial 400 million euros on this initiative.

Pensioners with monthly pensions between 1,045 euros and 1,567.50 euros will receive a bonus of 100 euros, while those with pensions between 522.50 euros and 1,045 euros will receive a bonus of 150 euros. The highest bonus value of 200 euros will be awarded to pensioners with monthly pensions equal to or less than 522.50 euros.

Beneficiaries will receive the full bonus amount, and it will not be subject to withholding at the source. Moreover, the bonus will not count towards the calculation of the solidarity supplement for the elderly and is non-seizable, meaning it cannot be withheld to pay debts.

It's worth noting that this bonus will be paid for the second consecutive year. However, the value of the bonus will be taken into account in the next year's income tax declaration as extra income and will be taxed accordingly.

While the September reforms have been generally well-received, there are ongoing internal disagreements and delays within the Union (CDU/CSU) and SPD regarding the readiness and consensus on the Bürgergeld reform.

The bonus for pensioners will be distributed from Monday, September 19th, to pensioners from the General Pension Fund and the banking sector, in addition to those who receive pensions from the Social Security system.

This pensioner bonus is part of a broader effort by the Portuguese government to support its elderly population and address the challenges posed by an ageing society.

Pensions for September commence payment starting from this coming Monday, accompanied by a linked bonus.