How much the IPREM rises in 2023 and all the aids affected by this index
On December 20, the Plenary of the Upper House ratified the law without including any amendment to the new General State Budgets for 2023. Three days later, specifically on December 23, the BOE published the revaluation of the Multiple Effects Public Income Indicator (IPREM) by 3.6%, a revision that has been registered in Law 31/2021. Among the measures included in the public accounts is an increase in pensions of 8.5%, in the salary of public employees of 2.5%, the extension to 2023 of the free Cercanías, an endowment of 28,692 million for projects associated with the recovery plan or the extension of the youth rental bond.
The increase in this index also represents a change for those who have access to the different state aids, since the IPREM is an index used in Spain as reference for the granting of different benefits, grants or subsidies. The 3.6% upward revision of the indicator will offer a round reference value fixed in the 20 euros per day and 600 euros per monthalthough the majority of citizens tend to take the annual indicator in 12 or 14 payments as a reference.
Its origin dates back to 2004, during the Zapatero government, and it was born to replace the Minimum Interprofessional Wage (SMI), which until now was used as a reference for the different grants. In this way, it was possible to be able to unlink the SMI from the subsidies or benefits and restrict it to the workplace, preventing the aid from rising like inflation or the SMI. As we have mentioned above, the increases in the indicator are published annually in the general budgets of the State, for which reason they vary each year. Last year the increase in the IPREM was 5%, so by 2023 the increase has been less.
Aid that depends on the IPREM
As indicated in the Budget Law and in the BOE, this will be the ninetieth additional provision where the exact values for the IPREM that will be in force during the year 2023. The maximum limits that users will now have to review before requesting aid or benefit are:
- Daily IPREM: €20.00
- Monthly IPREM: €600.00
- Annual IPREM in 12 payments: €7,200.00
- Annual IPREM in 14 payments: €8,400.00
In order to know if we exceed or not the amount of the IPREM indicated in a grant, we will have to check if our annual income, according to the Income Statement, exceed the indicated amount. Many subsidies mark that we must multiply this value by a specific amountas is the case with rental assistance, which in Madrid is multiplied by 3 or 4 times, depending on the profile of the applicant.
One of the best-known benefits where this index is taken as a reference is the unemployment benefit, although in this case it will vary depending on the number of children. It is also used for other housing, study or social aid.
- unemployment benefit
- Access to officially protected housing
- Aid for rent
- Free legal aid services
- social bond
- Imserso pension