In Spain, the Public Multiple Economical Reference Indicator, IPREM, serves as the main benchmark to assess the needs of individuals seeking access to various state supports and subsidies, including residents over 52 years old, based on income levels. The index began on July 1, 2004, with the Minimum Interprofessional Wage (SMI) reserved for purely business-related matters.
Since its introduction, IPREM has grown more slowly than the SMI. This year, the government approved a policy direction that reflects that difference: SMI rose by 5 percent, reaching €1,134 per month across 14 payments, or €1,323 per month across 12 payments, totaling €15,876 gross annually.
The slower pace of IPREM growth has allowed more families facing precarious economic conditions to qualify for the state’s benefits. IPREM is updated annually on the date the budgets are approved. The General Government Budgets (PGE) at the start of each year set its value for the relevant period.
Finance Minister and Public Service, Maria Jesus Montero, recently highlighted that budgets should be approved in sequence and that bills must be assessed beforehand to ensure they meet commitments. Agreements also map out reflections of those commitments within the budgets.
Currently, IPREM stands at 600 euros per month. Any further increase depends on the final approval of the anticipated PGE for the first quarter of the year. Projections for 2024 suggest a revaluation that would raise the amount of benefits available to citizens. For instance, the benefit for people over 52 is set at 80 percent of IPREM, equating to 480 euros per month.
Recently, a union proposal suggested replacing IPREM with a poverty threshold index to better calculate unemployment benefits. Under that proposal, if the threshold index is applied at 10,088 euros per year, the monthly benefit could rise from 480 euros under IPREM to 575 euros, an increase of nearly 100 euros.
This proposal underscores the need to continuously adjust economic support mechanisms to reflect the social and economic realities of Spain’s most vulnerable populations, aiming for a fairer distribution of state resources.
Evolution of IPREM
IPREM began in 2004, with the value for that year at 460.50 euros per month. The annual increases were modest in the early years, roughly around 10 euros per year until 2010: 2005 at 469.80 euros, 2006 at 479.10 euros, 2007 at 499.20 euros, 2008 at 516.90 euros, 2009 at 527.24 euros, and 2010 at 532.51 euros.
Consequently, from 2010 to 2016, IPREM was held at 532.51 euros. In 2017, it rose slightly to 537.84 euros and remained frozen at that level through 2021. The 2022 figure climbed to 564.90 euros, 2013 rose to 2023? No — instead, in 2023 it stayed at the current level of 600 euros. The increase for 2024, not yet approved, awaits the General Government Budget (PGE) approval, leaving many unemployed people awaiting confirmation of whether benefits will rise. Caution remains the watchword as the process proceeds.