Portugal Pension Increase 2027

How this works

The annual pension update follows a fixed formula in Lei 53-B/2006: two INE indicators give the percentages and the IAS (Indexante dos Apoios Sociais, the benefits index) sets the bands. The simulator applies that formula to the scenario you choose (by default, our estimate from September 2026 data) and shows the band, the percentage, the new pension and the difference per month and per year, over 14 payments. Everything runs in your browser.

1. 1
   Two INE indicators decide the increase
   The first is real GDP growth: the average over two years ending in Q3 2026, where each year runs from Q4 to the following Q3. The second is the 12-month average change in the CPI excluding housing available in December, i.e. up to November 2026 (art. 4 of Lei 53-B/2006). GDP picks the rule and inflation sets the number.
2. 2
   GDP lands between 2% and 3%: these are the rules
   With INE data up to Q2 2026 (revised on 23 September), the GDP average is 2.22% even if Q3 is flat. Only a fall of more than 1.7% in that quarter would push it below 2%, and 3% is out of reach. In that range the law says: up to 2 IAS, CPI plus 20% of GDP growth, at least 0.5 points above CPI, rounded to one decimal; 2 to 6 IAS, CPI; above 6 IAS, CPI minus 0.25 points; above 12 IAS, no update.
3. 3
   Inflation up to November: about 2.8%
   In August 2026 the 12-month average of the CPI excluding housing was 2.56%, the same indicator that set the 2027 rent coefficient. If year-on-year inflation excluding housing stays at August’s 3.20% until November, the average reaches about 2.81%. With 2.8%, pensions rise 3.3% up to 2 IAS, 2.8% from 2 to 6 IAS and 2.55% from 6 to 12 IAS. Rounding matters: with CPI at 2.85% or more, the rate up to 2 IAS becomes 3.4%.
4. 4
   Bands use the 2027 IAS, with minimum increases in euros
   Band limits use the IAS of the year itself, which rises by the same percentage as pensions up to 2 IAS: €537.13 × 1.033 = €554.86 (estimate). Hence the limits of €1,109.72, €3,329.16 and €6,658.32. The law guarantees that a pension just above a limit never gets less, in euros, than the top of the band below: at least €36.62 between 2 and 6 IAS and €93.22 above 6 IAS (in 2026 these were €30.08 and €73.16).
5. 5
   Three examples with the default scenario
   A €600 pension is up to 2 IAS: it rises 3.3% to €619.80, €19.80 more per month and €277.20 more per year over 14 payments. A €1,500 pension rises 2.80% to €1,542.00, €42.00 more per month and €588.00 more per year. A €1,150 pension would get only €32.20 at 2.80%, below the minimum, so it rises €36.62 to €1,186.62.