The Public IPREM, or the Income Preparatory Indicator for Spain, serves as the primary measure to gauge the level of need for individuals seeking state aid and support, including those over 52 years of age, based on income. This index began operation on July 1, 2004, separating its purpose from the Minimum Interprofessional Wage (SMI), which remains focused on business matters.
Over the past two decades, IPREM’s growth has lagged behind SMI. This year the government approved changes that reflect a modest uptick. The SMI rose by 5 percent to 1,134 euros monthly on 14 payments or 1,323 euros monthly on 12 payments, totaling 15,876 euros gross annually. This nuanced growth pattern helps more families facing precarious finances access the benefits the state offers. IPREM is updated annually, typically in conjunction with the approval date of the General Government Budgets. The value applies to the corresponding period for each year.
Finance Minister Maria Jesus Montero highlighted that negotiations around the 2024 accounts should proceed in sequence, and any bill submitted to Parliament should first demonstrate that it fulfills commitments. The agreements also call for any reflections to be clearly embedded in the budgets.
Currently, IPREM stands at 600 euros per month, with any further increase contingent on the final approval of the expected General Government Budget. Forecasts for 2024 suggested a revaluation that would raise the amount of benefits for citizens. As an example, the benefit for individuals over 52 years old equates to 80 percent of IPREM, amounting to 480 euros per month.
Some weeks ago, a union proposal explored replacing IPREM with a poverty threshold index to improve unemployment benefit calculations. If such a system were adopted, using a yearly figure of 10,088 euros, the monthly benefit could rise from 480 euros under IPREM to about 575 euros with the poverty threshold, representing an increase close to 100 euros monthly.
The proposal underscores the ongoing need to adjust economic support mechanisms to reflect Spain’s social and economic realities and to ensure resources are distributed more equitably across the population in need.
Evolution of IPREM
IPREM is an indicator first introduced in 2004. The value for the current year began at 460.50 euros per month. From 2005 onward, annual increases averaged around ten euros, with concrete figures such as 469.80 in 2005, 479.10 in 2006, 499.20 in 2007, 516.90 in 2008, 527.24 in 2009, and 532.51 in 2010.
In the period from 2010 to 2016, the IPREM amount remained frozen at 532.51 euros. In 2017, a slight rise brought it to 537.84 euros and it stayed at that level through 2021. A notable increase occurred in 2022, reaching 579.02 euros, and 2023 kept the level steady at 600 euros.
At present, the possible increase for 2024 awaits approval within the General Government Budget. Many unemployed individuals are watching closely to see whether the benefit amounts will be raised. The process continues to involve careful consideration of the state budget and the allocation of resources for social protection programs.