Net pensions rise after inflation and new IRS tables
Pensioners will see slightly higher net payments from this month after routine inflation adjustments and new IRS withholding tables were applied; simulations show, for example, a gross €1,000 pension could yield roughly €27 more net. The change reflects updated income‑tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) withholding rates rather than a direct benefit increase. Pension recipients should check payslips to confirm new net amounts.
The IRS withholding tables are government-published schedules used by employers, pension payers and other payers to calculate how much personal income tax (personal income tax (Imposto sobre o Rendimento das Pessoas Singulares) — IRS) must be deducted from each pay period. They take into account gross pay, pay frequency, marital status and dependents; updates (usually published annually or when the budget changes) affect your monthly take-home pay and are reconciled with your annual tax return (Modelo 3).
'The wage reality in Portugal is frankly distressing': the narrowing gap between the minimum and average wage is 'increasingly dangerous'
Economist João Rodrigues dos Santos analyses the advantages and disadvantages of the new IRS withholding tables which, he says, are likely to bring even more 'uncertainty' to the Portuguese. Highlighting the 'distressing' wage reality in Portugal, the expert draws attention to rising housing prices and the instability of variable interest rates.
📹 New IRS tables increase take-home pay. See the simulations
The IRS withholding tables have now been published and will be applied to salaries and pensions throughout 2026. It is now possible to calculate take-home pay — and according to simulations carried out by EY for ECO, some people will save €22 with the new rates.
Some people save €22 a month with new IRS withholding tables. See the simulations
With the new year underway, the Government has published the IRS withholding tables that will be applied to salaries and pensions throughout 2026. Simulations carried out by EY for ECO show that the net monthly income of several workers in Portugal will increase, with some even ...
So, how are IRS withholding tables applied to salaries?
The IRS withholding tables to be applied to earnings and pensions during 2026 have now been published. However, for three years the calculation of this monthly deduction has been more complex than what the Portuguese were accustomed to. Now, it is necessary to multiply the gross salary by ...
From €3 to €22 per month: find out how much you can save with the new IRS withholding tables
New tables were published this Tuesday on the Finance Portal (Portal das Finanças) and are already taking effect. See Ilya's simulations to find out how much you could save each month.
New changes in Portugal Personal Income Tax
Home News New changes in Portugal Personal Income Tax New changes in Portugal Personal Income Tax The new IRS withholding tables that will apply to salaries and pensions in 2026 have been published on the Finance Portal.
