August pensions will now be processed using the new IRS withholding tax tables

Social Security and the General Pensions Fund (CGA) will now process August pensions according to the new IRS withholding tax tables, making the net pension higher next month.

“Both Social Security and the General Pensions Fund will apply the new tables in August,” an official source from the Ministry of Labor, Solidarity and Social Security (MTSS) confirmed to Lusa today, when asked about when the two entities will reflect the new rates.

Unlike what happened last summer, when Social Security and the CGA were unable to apply the new tables immediately after the new withholdings were announced, the two entities expect to be able to pay future pensions in accordance with the new withholdings.

In 2024, the tax also fell mid-year, and when the government released the new tables at the end of August, with new rates to apply in September, Social Security and the CGA had already processed the following month's pensions. Therefore, they only applied the new rates in October, making the adjustment for September's pensions. This time, the forecast is different.

According to the Government's order published on Tuesday on the Finance Portal, companies and other entities paying salaries and pensions must apply the new tables from the beginning (starting in August), but if they are unable to do so immediately, they can adjust the values later, until the end of the year.

The order from the Secretary of State for Tax Affairs, Cláudia Reis Duarte, includes tables for two different moments.

Some apply in August and September, with exceptionally lower rates, to compensate for withholdings made between January and July, when it was not yet possible to take into account the reduction in IRS rates from the 1st to the 8th bracket approved by parliament this month.

Social Security and the General Pensions Fund (CGA) will now process August pensions according to the new IRS withholding tax tables, making the net pension higher next month.

“Both Social Security and the General Pensions Fund will apply the new tables in August,” an official source from the Ministry of Labor, Solidarity and Social Security (MTSS) confirmed to Lusa today, when asked about when the two entities will reflect the new rates.

Unlike what happened last summer, when Social Security and the CGA were unable to apply the new tables immediately after the new withholdings were announced, the two entities expect to be able to pay future pensions in accordance with the new withholdings.

In 2024, the tax also fell mid-year, and when the government released the new tables at the end of August, with new rates to apply in September, Social Security and the CGA had already processed the following month's pensions. Therefore, they only applied the new rates in October, making the adjustment for September's pensions. This time, the forecast is different.

According to the Government's order published on Tuesday on the Finance Portal, companies and other entities paying salaries and pensions must apply the new tables from the beginning (starting in August), but if they are unable to do so immediately, they can adjust the values later, until the end of the year.

The order from the Secretary of State for Tax Affairs, Cláudia Reis Duarte, includes tables for two different moments.

Some apply in August and September, with exceptionally lower rates, to compensate for withholdings made between January and July, when it was not yet possible to take into account the reduction in IRS rates from the 1st to the 8th bracket approved by parliament this month.

Social Security and the General Pensions Fund (CGA) will now process August pensions according to the new IRS withholding tax tables, making the net pension higher next month.

“Both Social Security and the General Pensions Fund will apply the new tables in August,” an official source from the Ministry of Labor, Solidarity and Social Security (MTSS) confirmed to Lusa today, when asked about when the two entities will reflect the new rates.

Unlike what happened last summer, when Social Security and the CGA were unable to apply the new tables immediately after the new withholdings were announced, the two entities expect to be able to pay future pensions in accordance with the new withholdings.

In 2024, the tax also fell mid-year, and when the government released the new tables at the end of August, with new rates to apply in September, Social Security and the CGA had already processed the following month's pensions. Therefore, they only applied the new rates in October, making the adjustment for September's pensions. This time, the forecast is different.

According to the Government's order published on Tuesday on the Finance Portal, companies and other entities paying salaries and pensions must apply the new tables from the beginning (starting in August), but if they are unable to do so immediately, they can adjust the values later, until the end of the year.

The order from the Secretary of State for Tax Affairs, Cláudia Reis Duarte, includes tables for two different moments.

Some apply in August and September, with exceptionally lower rates, to compensate for withholdings made between January and July, when it was not yet possible to take into account the reduction in IRS rates from the 1st to the 8th bracket approved by parliament this month.