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what is it and what is it for

O Social Support Index (IAS) goes up in 2023 for the 480.43 euros, 37.23 euros more than that registered in 2022 (443.20 euros). Which means that the limits and values ​​of some social benefits also rise, but not only.

The value of the IAS has implications for many aspects of our daily lives. From tuition fees to Social Security benefits, from IRS deductions to self-employed workers’ contributions, there are several amounts that are calculated based on this indicator.

Incidentally, the designation Indexing Social Support reflects its purpose. This is the indicator that Social Security uses to assess, for example, situations of economic need.

An update of the Social Support Index means, therefore, that all values ​​that are calculated based on this indicator are also changed. Let us see, then, some applications of the value of the IAS.

What is the impact of the IAS increase?

Pensions

The value of the IAS is decisive in deciding which pensions are increased. In 2023, the increase is made according to steps based on the value of the Social Support Index.

Thus, and in accordance with the upward revision that the Government had to make to the values ​​proposed in the State Budget for 2023, pensions up to twice the IAS (960.86 euros) go up 4.83%?? Reforms between 2x IAS and 6x IAS (that is, between 960.86 and 2,882.58 euros) go up 4.49%?? Above this value, the increase is 3.89%??

Unemployment allowance

The value of the IAS also has repercussions on the unemployment benefit limits.

In situations where the salary that served as the basis for calculating the unemployment benefit corresponds, at least, to the national minimum wage, the minimum value is 552.49 euros, which is equivalent to 1.15 times the IAS.

The minimum amount of unemployment benefit is, from now on, permanent. That is, as long as the reference remuneration is equivalent to the minimum wage, this benefit cannot be less than IAS x 1.15. In 2023, the minimum wage increases to 760 euros.

This benefit also cannot exceed the maximum amount of 1,201.08 euros (2.5 times the IAS).

Unemployment social benefit

Social unemployment benefit depends on the beneficiary’s household. It is intended for those who have already exhausted their unemployment benefit or do not have enough discounts to be entitled to this support.

Since it is calculated according to the index (80 or 100% of the Social Support Index, depending on the case), the value of the social subsidy rises in 2023.

Thus, beneficiaries who are entitled to the maximum amount (100% of the IAS) will receive 480.43 euros, while those who are entitled to the minimum (80% of the IAS) will receive 384.34 euros.

sick pay

The value of the Social Support Index also serves to determine the minimum amount of sickness benefit??

This value corresponds to 30% of the daily value of the IAS (or reference remuneration, if lower).

Social Insertion Income

The IAS is also used to determine the attribution of the Social Insertion Income (RSI). To be entitled to this benefit, among other factors, the value of the transferable assets of the applicant cannot exceed 28,825.80 euros, which corresponds to 60 times the Social Support Index in 2023.

death benefit

The death subsidy, which is given to the deceased beneficiary’s relatives to “facilitate the reorganization of family life”, is also based on the IAS. This installment, which is paid in one lump sum, is the same for all beneficiaries and has the value of 1441.29 euros (3 times the IAS)??

Family allowance

The Social Support Index also has repercussions on the family allowance??

On the one hand, and for it to be awarded, the household must not have movable assets worth more than 240 times the IAS??

In addition, it is through this indicator that income is divided by brackets:

step Yield of reference Yield in 2022
1st equal to or greater than 0.5xIASx14 up to €3,102.4
2nd Greater than 0.5xIASx14 and equal to or less than 1xIASx14 more than 3,102.4 €
up to €6,204.08
3rd Greater than 1xIASx14 and equal to or less than 1.7xIASx14 over €6,204.08 up to €10,548
4th Greater than 1.7xIASx14 and equal to or less than 2.5xIASx14 more than €10,548 up to €15,512
5th Greater than 2.5xIASx14 more than €15,512

Exemption from user fees

User fees in primary health care are being abolished. However, these rates continue to be practiced, for example, in hospitals.

The law grants exemption from user fees to users in a situation of economic insufficiency. That is, with a average monthly income equal to or less than 1.5 times the value of the Social Support Index (€720.65)??

Minimum of existence

The Social Support Index is also used to determine the value of the minimum existence, that is, the income up to which taxpayers are exempt from IRS payment??

This annual value is calculated by multiplying 1.5 IAS for 14 months?? However, and as the minimum wage has risen and the law states that the income net of tax, per holder, cannot be less than the annual value of the minimum guaranteed remuneration, the value in 2023 will be 10,640 euros??

self-employed

IAS is also used to calculate the contributions of self-employed workers to Social Security, as well as situations in which there is exemption from payment.

For example, in cases where they simultaneously carry out self-employed activity and work for others, workers are exempt from Social Security contributions if the average monthly income (calculated quarterly or annually) is less than 1,921.72 euros (4 times the IAS)??

The contributory base, ie the average monthly income considered for the purposes of paying contributions, is also related to this index.

In the case of the organized accounting regime, in 2022, it has a minimum limit of 664.8 euros (1.5 times the IAS) and a maximum of 5,318.4 euros (12 times the IAS). In 2023 these limits will be €720.65 and €5,765.16, respectively.


See too
Guide for the self-employed: taxes, contributions, insurance

Tuition fees and scholarships

The value of the maximum tuition fee in university education also reflects the value of the IAS, as it cannot exceed twice this index.

This indicator is also used to assess the economic capacity of households applying for higher education scholarships.

Thus, the per capita gross annual income of the household must be equal to or less than 18 times the IAS plus the maximum fee amount.

On the other hand, movable assets cannot exceed 240 times the IAS (106,368 euros in 2022, 115,303 euros in 2023).

Limits for benefit in the Young IRS

In 2023, there are novelties in the IRS Jovem and one of them involves the limits of the benefit to be attributed, which are also calculated based on the IAS. Thus, the IRS discount for those who start their professional life will have the following limits:

  • Year 1: 12.5 x IAS (6005.38 euros)
  • year 2: 10 x IAS (4,804.30 euros)
  • year 3: 7.5 x IAS (3,603.23 euros)
  • Year 4: 7.5 x IAS (3,603.23 euros)
  • year 5: 5 x IAS (2,402.20 euros).

HOW HAS THE SOCIAL SUPPORT INDEX EVOLVED?

the value of Social Support Index (IAS) for 2023 there is an increase of 8.4% compared to 2022. The increase of €37.23 is the biggest since this index was created.

In 2022 it had increased by 1%, in line with verified inflation.

Already in 2021, the value of the IAS reflected the economic situation experienced in 2020. As this index takes into account economic growth and the previous year was a crisis, there was no update.

Thus, the year changed, but the value of the IAS, contrary to what had been happening since 2017, remained in the 438.81 euros?? A freeze that only occurred in the crisis years, between 2009 and 2016, when there were also no rises.

In 2020, and as in previous years, the Social Support Index had risen slightly less than, for example, between 2018 and 2019. The 438.81 euros then represented an increase of 0.7% compared to the previous year, that is, about three euros more.

In 2019, the value of the IAS was 435.76 euros. It had already suffered an increase of 1.6% compared to 2018, the equivalent of 6.86 euros, thus continuing the policy of increases initiated in 2017.

At the time it appeared, in 2006, the idea was that the IAS would be increased every year, based on the real growth of the gross domestic product (GDP) and the average variation of the last 12 months of the consumer price index (CPI) .

In fact, this increase took place until 2009, the year in which signs of the economic crisis appeared, which would lead to a period of austerity. In the following seven years, the IAS remained frozen at 419.22 euros. And only in 2017 did the increases return.

The IAS numbers

Year Value IAS Variation (€) Variation (%)
2023 €480.43 €37.23 8.40%
2022 €443.20 €4.39 1.00%
2021 €438.81 €0.00 €0.00
2020 €438.81 €3.05 0.70%
2019 €435.76 €6.86 1.60%
2018 €428.90 €7.58 1.79%
2017 €421.32 €2.10 0.50%
2016 €419.22 €0.00 0.00%
2015 €419.22 €0.00 0.00%
2014 €419.22 €0.00 0.00%
2013 €419.22 €0.00 0.00%
2012 €419.22 €0.00 0.00%
2011 €419.22 €0.00 0.00%
2010 €419.22 €0.00 0.00%
2009 €419.22 €11.81 2.90%
2008 €407.41 €9.55 2.40%
2007 €397.86 ?? ??

How is the Index calculated?

The IAS emerged in 2006 with the aim of being used as a reference for setting, calculating and updating Social Security benefits??

Until then, these amounts were calculated based on the Guaranteed Minimum Monthly Remuneration (RMMG), commonly known as the minimum wage. However, this is still used as a reference in certain cases.

THE Law No. 53-B/2006, that creates this Social Support Index, also stipulates that the value is updated annually and fixed through a joint ordinance by the government responsible for Finance and Social Security.

Although the amount is not known on the first day of the year, the value of the IAS starts to take effect from the 1st of January of each year.

The indicators used

In fact, the calculations start to be made earlier and take into account the following indicators:

  • Real GDP growth corresponding to the average annual average growth rate of the last two years;
  • The average variation of the last 12 months of the CPI, without housing, available in December of the year prior to the year in which the update reports, or on November 30, if that is not available on the date of signature of the update diploma.

It should be noted that the annual variation in GDP does not take into account the value on December 31 of the previous year, but what occurs between the 4th quarter of one year and the 3rd quarter of the following year.

If this value is not available by December 10th, the value of the immediately previous quarter is considered.

That is, and for the purposes of calculating the IAS in 2022, the variation in GDP between 31 December 2020 and 31 October 2021 would have been taken into account.

HOW ARE THE IAS ACCOUNTS MADE?

The accounts may even seem simple, but the calculation of the IAS value obeys certain rules, also defined at the time it was created.

Thus, the formula for reaching the update is not always the same, obeying the following criteria:

  • Average real GDP growth is equal to or greater than 3%: IAS update = CPI + 20% real GDP growth rate;
  • When average real GDP growth is equal to or greater than 2% and less than 3%: IAS update = CPI + 20% of the real GDP growth rate, with a minimum limit of 0.5% above the CPI value;
  • Average real GDP growth is less than 2%: IAS update = IPC.

Once calculated, refresh rates are rounded to the first decimal place.

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