HE Public Multiple Effective Income Indicator (IPREM) In Spain, the main criterion is to determine the needs of people who want to benefit from various state aids and assistance, such as people over the age of 52, according to their income levels. This index began to be used on July 1, 2004 and Minimum Interprofessional Wage (SMI) for this particular purpose, leaving SMI solely for business matters.
Since its introduction two decades ago, growth of IPREM has been slower than that of SMI. In fact, this year the government gave the green light. The increase in SMI increased by 5%, reaching €1,134 per month over 14 payments or €1,323 per month over 12 payments, for a total of €15,876 gross.
This slowdown in growth has allowed more families in precarious economic situations to access the benefits offered by the State. IPREM update is carried out annually, on the date of approval. General Government Budgets (PGE) at the beginning of each yeardetermines its value for the relevant period.
Minister of Finance and Public Service, Maria Jesus MonteroHe recently emphasized: “It was part of the conversations that the accounts, and especially the accounts for 2024, should be approved sequentially. But before a bill enters the Parliament, we need to talk to them to see whether it actually fulfills the commitments. It was also stated in the agreements that it should be reflected in the budgets.”
Right now, IPREM was determined as 600 Euros per month. and its possible increase will depend on the final approval of the expected PGE. first quarter of the year. It is predicted that by 2024 this indicator will experience a revaluation that will increase the amount of benefits offered to citizens. For example, the amount of assistance for people over 52 years of age is 80% of IPREM, i.e. 480 Euros per month.
Union a few weeks ago UGT proposes replacing IPREM with poverty threshold index In order to improve the calculation of unemployment benefits. Therefore, if this scale is applied (10,088 euros per year), the monthly benefit amount will increase from 480 euros collected by IPREM to 575 euros of the poverty index. An increase of almost 100 euros.
This proposal emphasizes the need to continue adjusting economic support mechanisms to suit the social and economic reality of the most vulnerable populations in Spain, thus ensuring a more equitable distribution of state resources.
Evolution of IPREM
As we mentioned, IPREM is an indicator that started to be used in 2004 and the amount for this year is 460.50 euros per month. The increase in IPREM was approximately 10 euros per year until 2010: 2005 (469.80), 2006 (479.10), 2007 (499.20), 2008 (516.90), 2009 (527.24), 2010 ( 532.51).
For this reason, From 2010 to 2016 the IPREM amount was frozen at 532.51 euros. In 2017, this amount increased slightly to 537.84 euros and was refrozen until 2021. This year the amount increased significantly to 564.90 euros, in 2022 it reached 579.02 euros and in 2023 it remained at the current level of 600 euros.
Therefore, the increase for 2024 (not yet approved) is still awaiting approval from the General Government Budget (PGE), and many unemployed people are waiting for this figure to find out whether the amount of benefits they receive will increase. We will be very careful.
Source: Informacion
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