IRS Inquiry: Have you transitioned into retirement?
In a recent development, the Portuguese Government has announced updated IRS withholding rates for pensioners effective from October to December 2025. These new rates are part of the revised IRS tables for 2025, which were published in Order no. 236-A/2025 of 6 January.
The new tables incorporate updates such as the increase in the national minimum wage to 870€ and adjustments to the IRS brackets. One significant change is the increase in the deduction of the "Existence Minimum" to 12,180€ for 2025.
However, the exact withholding rate for a pensioner earning 2000€ per month in the months of October to December 2025 is not explicitly detailed in the provided search results. Pensioners receiving 2000€ per month can expect a withholding rate corresponding to the applicable IRS bracket for that income level, adjusted for personal circumstances (e.g., dependents, deductions).
For a more accurate calculation, pensioners are advised to consult the official Portuguese government IRS withholding tables for 2025, specifically the pension section relevant for monthly incomes around 2000€, which can be found on the official government portal.
Meanwhile, the withholding rates for other income levels have been specified. For instance, a pensioner earning 1.250€ per month will have a withholding rate of 94 euros per month from October to December, compared to the previous rate of one euro per month in August and September. This represents an increase of 93 euros per month.
Similarly, a pensioner earning 1.750€ will have more than ten euros less in withholdings in the next two months, with a rate of 151 euros per month, compared to the previous rate of 231 euros per month.
In a positive turn of events, a pensioner earning 1.250€ per month will withhold only 0.53% of their pension (eight euros) in the next two months, compared to the previous rate of 8.08%.
Moreover, the withholding rate for a pension of 3.000€ will be 692 euros per month from October to December, compared to the previous rate of 715 euros in September. This represents a decrease of 23 euros per month.
In the case of a pension of 2.000€, the withholding temporarily becomes 21 euros, whereas it was previously 306 euros per month. This reduction in withholding is a significant relief for many pensioners.
The Government is compensating for withholdings made in the first months of the year in August and September. The Social Security and the General Pension Fund (CGA) have started processing the pensions of August according to the new tables, unlike last summer.
These changes aim to provide financial relief to pensioners, especially given the rising cost of living. It is recommended that pensioners review their withholding rates and make any necessary adjustments to their financial planning accordingly.
[1] Ordem do Ministro da Economia, do Planeamento e da Inovação: https://www.dgemprego.pt/pt/noticias/ordem-do-ministro-da-economia-do-planeamento-e-da-innovacao-2025-01-06-236-a-2025-publicacao-de-tabelas-de-tabulagem-de-irr-para-salarios-e-pensoes-de-2025
- The updated IRS withholding rates, as part of the revised IRS tables for 2025, provide a significant change for a pensioner earning 2000€ per month, as the exact withholding rate for this income level is not explicitly detailed and varies according to personal circumstances, such as dependents and deductions.
- Despite the lack of specific information about the withholding rate for a pensioner earning 2000€ per month, other pension earners can find detailed information about their withholding rates in the official Portuguese government IRS withholding tables for 2025, specifically the pension section relevant for monthly incomes around 2000€, which can be found on the official government portal.
