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  • 08 SEPTEMBER 2024
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PCP questions minister about the accuracy of the IRS retention in pensions

Today, the PCP questioned the Minister of Labour, Solidarity and Social Security about the adjustment in the withholding of personal income tax (IRS) on May pensions, which resulted in a lower net amount, considering this an unacceptable situation.

PCP questions minister about the accuracy of the IRS retention in pensions
Notícias ao Minuto

11:21 - 30/04/24 por Lusa

Política Segurança Social

In the question, addressed to Maria do Rosário Palma Ramalho through parliament, the PCP states that, through a statement from the National Confederation of Retirees, Pensioners and Senior Citizens (MURPI) and contacts it made, it became aware that there are pensioners who, when accessing the Social Security Direct portal, find that, in May, "they will receive a lower amount than in the previous two months".

"According to what we have learned, the gross amount of the pension is the same, as is the withholding tax percentage for IRS purposes, but the amount to be withheld is higher than the corresponding rate indicated. This calculation results in a lower net amount to be received, compared to previous months", reads the question, signed by communist deputies Paula Santos and Alfredo Maia.

For the PCP, "it is unacceptable that, considering that the vast majority of pensions are very low and, after measures to reduce IRS rates were announced, retirees and pensioners are faced with this situation, receiving a pension amount lower than what they have been receiving".

The party thus asks the Minister of Labour, Solidarity and Social Security "what knowledge the Government has of this situation", in addition to also questioning "the reason for the reduction in the net amount of pensions, considering that the gross amount of pensions and the IRS rate remain the same".

"What measures will the Government take to fully respond to this situation, as well as to quickly rectify the calculations that are being made, so that retirees and pensioners maintain the net value of their pension?", they also ask.

This Monday, the Government expressed "astonishment" at the withholding tax adjustment on April and May pensions, stating that this results "exclusively from the political orientation" of the previous socialist executive.

In turn, the Social Security Institute clarified that adjustments were made to the withholding tax on April and May pensions to correct the withholding made in January based on a "provisional" table for 328,000 pensioners.

This clarification came after the Jornal de Negócios reported the case of pensioners who were faced with a reduction in the net value of their pension paid in May, without the receipt for it providing an explanation for this fact -- since the gross value of the pension remained the same, as did the tax withholding rate, but not the discount amount.

Read Also: Pension adjustment? "The person responsible must be called to Parliament" (Portuguese version)

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