The ordinance that regulates the extraordinary income support that the Government announced earlier this month, as part of the so-called anti-inflation plan. These aids will begin to reach the bank accounts of the Portuguese from the 20th of October.At issue is the payment of 125 euros to workers earning less than 2,700 euros gross per month and recipients of social benefitsas well as the payment of 50 euros per dependent. Both aim to help Portuguese families to face the increase in the cost of living. conditions and different scenarios for those who will or will not receive this support.if it is resident citizen and has a gross income up to 2,700 euros per month, yes, you are entitled to receive. This extraordinary support is intended for all residents with a gross income up to 37,800 euros per year – 2,700 euros per month – whether they are holders of income that submit IRS (above 8,500 euros per year) or holders of income that do not submit an IRS tax return. coworkersof others, in the public or private sector, such as the self-employed. The calculation is based on 2021 earnings.
I’m unemployed, will I get paid?
Yup. In addition to the condition mentioned in the previous question, beneficiaries of the following social benefits are covered by this measure:Unemployment allowance;Social unemployment allowance;Parenting benefits with a monthly reference salary of less than 2,700 euros:Sick and occupational sickness allowances, provided for a period of not less than one month and with a monthly reference salary of less than 2,700 euros; Social inclusion income, if you are over 18 years of age; Social benefit for inclusion, if you are over 18 years of age; Solidarity supplement for the elderly, without a pension awarded; Support allowance for the main informal caregiver. According to the ordinance, this measure it also covers all those who, “in September 2022, are registered as research fellows in voluntary social insurance”.
I am a pensioner, am I also entitled to receive?
Not. If you are a pensioner, you are not covered by this support. Instead, you will receive a extraordinary supplement equivalent to 50% of the usual value of the pension – that is, more half board – already in October. This one amount will be taxed at the IRS, but the increase in income will not translate into an increase in tax payable or withheld. However, the ordinance establishes that persons who, having declared category H income in the IRS, paid in 2021, are entitled to 125 euros. by Caixa Geral de Aposentações (CGA) or by social security, do not benefit from the exceptional supplement for pensioners and “have their pension suspended or reduced because they are carrying out remunerated professional activity in the public sector”; “have their pension updated by indexing the remuneration received by an active worker of the same category”; or “are not beneficiaries of disability, old age and survivors’ pensions under the social security system, retirement, retirement and survivors’ pensions under the convergent social protection system” or other pensions.
And the support of 50 euros, who is it for?
The support of 50 euros is intended for to dependents, children and young people up to 24 years of age (inclusive), or without age limit in the case of disabled dependents, regardless of household income. Here, once again, the situation of last year will be considered. Ie, dependents who, in 2021, belonged to the parents’ household will be considered for tax purposes.
In the case of separated parents, how is the payment of the 50 euros made?
The payment of 50 euros per descendant follows the proportion defined for tax purposes, that is, each holder receives 25 euros per dependent. In cases where the dependent belongs to only one household – there is no alternate residence – it is this holder who receives all the support related to the dependent. one of the taxable persons is not a resident, for tax purposes, in Portugal, extraordinary support is paid to the taxable person residing in the country. Read also: Higher education: Family allowance gives automatic access to scholarships
What do I have to do to receive support?
To receive the support, you only have to make sure you have the updated IBAN in Finance and Social Security. This is because the process is automatic: the right to support is calculated automatically by the Tax and Customs Authority and Social Security, and payment is made via bank transfer. If you have submitted an IRS statement for 2021, the payment will be based on the bank details contained in the Finance Portal. In the other cases covered, the support will be processed by Social Security. If you have not yet indicated your IBAN to these entities, must do so through website or over the counter.
How can I update my IBAN?
If your IBAN is incorrect or out of date, you must access the Finance Portal and Direct Social Security to update the data. On the main page of the Finance Portal, you will find a link to a page where you will be able to register and update your IBAN. You can also register or change the IBAN associated with your personal account on the Social Security Direct website.
If my IBAN is not up to date, what happens?
In the case of payments made by the Tax Authority, the IBAN that appears in the AT register or the IBAN confirmed when submitting the IRS declaration for 2021 will be used. If the IBAN is not available or is invalid, the transfer order will be repeated during the following six months.In payments made through Social Security, the IBAN registered in the system is used. If not available or invalid, the Payment will be made by postal order.
Will I pay IRS on the 125 euros?
Not. Exceptional income support is not subject to IRS.
How many people will receive this extraordinary income support?
The Government estimates that the extraordinary income support of 125 euros will reach around 5.8 million people, while the support of 50 euros will cover 2.2 million dependents.
How much will it cost the state?
The exceptional income support will cost, in all, around 840 million eurosof which 730 million refer to extraordinary support of 125 euros and 110 million to exceptional support for children and young people. Read also: Rise in household debt slows down for the first time since November
A professional writer by day, a tech-nerd by night, with a love for all things money.