The rise in the SMI will make more people access subsidies and benefits: this is how the access ‘caps’ remain

The rise of minimum interprofessional wage (SMI) at 965 euros per month -15 euros more- will not only benefit workers who are in this salary range, some 5.5 million Spaniards. The increase also It will affect various benefits whose access depends on this indicator, expanding the people who will be able to receive them.

This is indicated by the normative impact report published by the Ministry of Labor and Social Economy. It explains that “the maximum income limit to be entitled to welfare benefits” managed by the State Public Employment Service (SEPE) “is set from the SMI.”

In this way, the increase of 7.13 euros monthly income on the income ceiling for access to unemployment benefit and active insertion income, and 9.5 for access to agricultural subsidy and agricultural income, will allow a greater number of people to access these benefits. Of course, the amount that will do so, as the document admits, will be reduced.

Once the new SMI is approved – something that will happen in the next Council of Ministers – these subsidies will have new caps. The maximum income to access unemployment benefits (such as the exhaustion of contributory benefits or aid for the unemployed over 52 years of age) will remain at 719.63 euros per month, 75% of new SMI.

Meanwhile, the agrarian subsidy (the peonadas) of Andalusia and Extremadura will have an income ceiling slightly lower than the new SMI, of about 959.5 euros per month.

Quotes and expenses

It should be remembered that, in addition, the SEPE will have to assume an increase in the contributions that Social Security has to pay in the cases that correspond to the increase in the minimum contribution bases. In total, between some concepts and others, The Government estimates an increase in public spending of 25.8 million for all of 2022.

However, this increase should be even higher. The Executive still has to negotiate with unions and employers to raise the SMI for 2022. For next year, the unions want the minimum wage to not be below the minimum wage. 1,000 euros per month in 14 pays.

On the other hand, the salary increase will also affect the accounts of large companies. It is not only that they have to pay the increase in the SMI itself, but they will also have to assume the rise in the contribution bases.

This will involve a spending almost 10 million ‘extra’ in quotes in the remainder of 2021.

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