The Multiple Effects Public Income Indicator (IPREM) is an index that is used in Spain to grant aid and subsidies. In other words, the IPREM establishes a limit on family and personal income that is used to decide who is awarded a scholarship, school aid, the electric social bonus…
It was born in 2004 to replace the Minimum Interprofessional Wage (SMI) as a reference for this aid. The difference between both concepts is that the IPREM facilitates access to aid for the most disadvantaged family economies, while the SMI would be restricted to a work environment.
The IPREM is published annually in the Budget Law, and currently sets the limit at 7,200 euros (for 12 payments) and 8,400 (for 14). When it was created in 2004, the IPREM was set at 460.5 euros per month, and since then it has increased by just over 100 euros, to 600 euros per month.
Since Pedro Sánchez came to the Government, the Council of Ministers has been increasing it to that figure. In fact, the Minister of Labor and second vice president of the Government, Yolanda Díaz, has assured that she is holding talks with social agents to increase the IPREM again because “the incomes of those who need it most are losing purchasing power.”
The IPREM takes into account the gross salary before withholdings. This indicator can affect, for example, unemployment benefits. For example, if you do not have children, the minimum benefit to be collected will be 80% of the IPREM increased by one sixth, and the maximum amount to be received cannot exceed 175% of the index increased by one sixth.
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In other words, if the increase planned by the Ministry of Labor does not occur, the minimum payment, if you do not have children, will be a minimum of 560 euros, and a maximum of 1,225 euros. On the other hand, if you have children, the minimum to be paid will be 749 euros, and the maximum, if there are two or more, is 1,575 euros.
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