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Factsheet for case ES-2020-23/878 – measures in Spain

New minimum living income introduced

Nuevo Ingreso Minimo Vital

Country Spain , applies nationwide
Time period Open ended, started on 02 June 2020
Type Legislations or other statutory regulations
Category Measures to prevent social hardship
– Protection of vulnerable groups (beyond employment support)
Author Oscar Molina (UAB) and Eurofound
Case created 05 June 2020 (updated 01 December 2020)

Background information

The Decree-Law 20/2020 of 29 May establishes the Minimum Vital Income for the first time at national level in Spain.

There are other similar instruments established in most of the Autonomous Communites by the regional governments. Importantly, this new Income will be compatible with the existing regional measures. This Vital Income establishes a right to receive an economic allowance for those low-income households on a monthly basis. It is social protection measure in the context of fighting against poverty-at-risk, or even extreme poverty, and social exclusion.

This measure is one of the promises raised by the leftist government before the COVID-19 outbreak. However, the health crisis has accelerated the launch of the measure.

Content of measure

The Vital Income constitutes a guaranteed benefit targeting the most vulnerable households. It has a supplementary nature compatible with other family or personal aids or even other incomes from temporary work. It consists of one monthly payment of €462 for a single person and up to €1,015 for a family with two children.

All individuals aged between 23 and 65 years are entitled to receive the allowance as well as all types of family units. The amount of the allowance is calculated on the basis of previous year's incomes and assets. The Vital Income will be managed by the Social Security, except in the Basque Country and Navarre, two regions with proper fiscal prerrogatives.

Use of measure

According to the government estimations, the Vital Income will address 850,000 low-income households, which are the unit of beneficiaries - and not the individuals as such. However, it is also estimated to reach around 2.3 million people.

The Minister of Social Security, José Luis Escrivá, reported in Early October to the Labor Commission of the Congress of Deputies that a total of 90,800 applications for the Minimum Vital Income (IMV) were granted out of the million requests that the Ministry had received between June and September 2020.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Applies to all citizens

Actors and funding

Actors Funding
National government
Social insurance
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were informed anc consulted about the new measure

Views and reactions

Given the importance of the Vital Income, social partners were involved in the design of the measure, particularly the trade unions.

Sources

  • 01 June 2020: Royal Decree-Law 20/2020 of 29 May

Citation

Eurofound (2020), New minimum living income introduced, case ES-2020-23/878 (measures in Spain), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.