The level of aid and subsidies for unemployment will rise starting January 1, 2023. This proposal comes from the Government, which has drafted the General State Budgets and is now negotiating them with lawmakers. One key element in the first draft of the public accounts for the upcoming year is the update to the Multi-Impact Income indicator, IPREMA, which determines several social benefits such as unemployment payments and the minimum and maximum subsidies for people over 52. In total, about 1.79 million unemployed individuals would directly benefit from this adjustment.
Originally, the senior subsidy was calculated using the minimum interprofessional wage, but for more than ten years it has moved to the IPREM benchmark. In the current round of talks between political groups, it was agreed that the IPREM should increase by 3.6% for the next year. As a result, the indicator will rise from the current 579.02 euros per month to 600 euros per month. In effect, the pension and related subsidies will see this uplift alongside changes in other social transfers.
How will this change affect unemployment benefits? The public transfer is set as a percentage of IPREM, so any rise in IPREM translates into a higher subsidy. Legislation currently establishes that a person who is unemployed and over the age of 52 is entitled to a monthly payment amounting to 80% of IPREM. With the new budget, this amount will increase from 463.2 euros to 480 euros per month, assuming the budgets remain in place. In other words, the monthly payment would grow by 16.8 euros.
Does it also affect tax benefits?
Yes. The IPREM increase will have a direct effect on the contributions received by unemployed individuals or those on ERTE. This benefit, commonly known as paro, depends on the regulatory base determined by the wage history. There are still caps and floors in place, and the maximum and minimum amounts are tied to IPREM. When IPREM moves up, the associated limits and payments tend to rise as well.
At present the minimum monthly assistance ranges from 540.41 to 722.8 euros, depending on how many dependent children are claimed. The maximum ranges from 1,182.16 to 1,519.92 euros. With the IPREM increase, these figures shift upward, placing the minimum and maximum within higher monthly bands. The revised figures will reflect in the upcoming calculations for benefits and transfers tied to the IPREM baseline.
The net effect of this scale adjustment will touch current beneficiaries and future applicants alike. Spain currently hosts about 2.9 million unemployed residents, and roughly 1.79 million of them (about 58 percent) receive SEPE administered support or subsidies. Among them, more than 850,000 individuals who are older workers receive direct contributions, while the rest participate in other forms of resettlement or agricultural income programs. The evolution of IPREM and the resulting changes to benefit amounts aim to align support with living costs while preserving the incentives tied to employment and social protection.