Government creates extraordinary pension supplement of up to 200 euros in December

The Government has approved an extraordinary one-off pension supplement, which will be paid alongside December 2026 pensions to pensioners with the lowest incomes. The measure is set out in Decree-Law no. 201/2026, of October 8, published in the 1st series of the Diário da República, no. 195, and covers those receiving up to three times the value of the current Social Support Index (IAS). The diploma was promulgated by the President of the Republic, António José Martins Seguro, and countersigned by the Prime Minister, Luís Montenegro.

The decree-law was reviewed and approved in the Council of Ministers on September 17, 2026, with the signatures of Luís Montenegro, Joaquim Miranda Sarmento, and Rosário Palma Ramalho, and promulgated on September 29. It develops the legal regime established by Law no. 4/2007, of January 16, and continues identical measures adopted in 2024 and 2025. The preamble invokes the commitment of the XXV Constitutional Government to the protection of low-income pensioners and the current year’s budget execution, which allows for the adoption of the measure.

Three brackets of 200, 150, and 100 euros

The value of the supplement is determined based on the total monthly amount of pensions received by the pensioner:

• €200 for pensions equal to or less than €537.13;
• €150 for pensions greater than €537.13 and equal to or less than €1074.26;
• €100 for pensions greater than €1074.26 and equal to or less than €1611.39.

The upper limit of €1611.39 corresponds to three times the value of the current IAS, which is the condition for accessing the benefit.

Who receives it and who is excluded

Covered are disability, old-age, and survivor pensioners from the social security system, retirement and survivor pensioners from the convergent social protection regime, and banking sector pensioners, provided that the pensions are due up to and including November 30, 2026.

Excluded from the scope of the diploma are:

• pensions for permanent incapacity for work and death resulting from occupational disease;
• other pensions of an indemnificatory nature;
• non-contributory pensions within the scope of the Caixa Geral de Aposentações, I. P. (CGA, I. P.);
• dependency supplements, spouse-dependent supplements, and solidarity supplements for the elderly.

Payment without application and without IRS withholding

The supplement is paid together with the pensions for the month of December 2026, without the need for an application from the beneficiary. It is not subject to withholding tax for IRS purposes, is exempt from seizure, and is not taken into account for the calculation of the solidarity supplement for the elderly. The costs resulting from its allocation are borne by the State Budget.

Paying entities and financing

The Social Security Institute, I. P. (ISS, I. P.) is responsible for the payment of the supplement associated with social security system pensions, while the CGA, I. P. is responsible for the payment relating to the convergent social protection regime. In cases of a unified pension, the responsible managing entity makes the payment; when the pensioner holds pensions from both regimes, the supplement is divided in proportion to the value of each pension. In the banking sector, the CGA, I. P. or the pension funds that ensure payment are responsible, with payment being dependent on the managing entity’s assessment of the adequate funding of the pension plans.

Payment by the ISS, I. P. depends on the prior transfer of funds from chapter 60, managed by the Treasury and Finance Entity, to the Social Security Financial Management Institute, I. P.. In banking sector funds, the transfer is validated by the Inspectorate-General of Finance, within 90 days from the submission of the request by the paying entities, under terms to be defined by an ordinance from the Government members responsible for the areas of finance and social security.

The decree enters into force on the day following its publication. This is an extraordinary reinforcement of the income of pensioners with lower pensions, in a context of accumulated increase in the cost of living, with practical effects as early as the December 2026 pension.

Source: Diário da República, 1st series, no. 195, of October 8, 2026, section I (official reference: Decree-Law no. 201/2026).