Finance Minister Fernando Medina admitted bigger increases for retirees will happen in 2023 if inflation rises above 7.4% this year, the expected value, he said Monday while presenting the state budget (OE) proposal to 2023.
“There will of course be a correction to this increase,” if the inflation that counts, the average inflation without housing, exceeds government estimates in November, Fernando Medina said. However, he added that the correction will have a very small effect.
The OE proposal for 2023 confirms that pension increases will fluctuate between 3.53% and 4.43%, a reduction compared to applying the reform update formula which would yield increases between 8% and 7.1%.
This reduction in the update of pensions, which will lead to future losses for pensioners, taking into account that the calculation basis will be lower from 2024, is a counterpart to the bonus of more half-pension that pensioners receive this month, in the context of of income support measures to mitigate the negative effects of inflation.
Salomé Pinto is a journalist for Dinheiro Vivo
Source: DN
