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EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure ES-2022-14/2249 Updated – measures in Spain

Temporary increase in the minimum living income

Incremento del 15% del ingreso mínimo vital (Real Decreto-Ley 6/2022)

Country Spain , applies nationwide
Time period Temporary, 01 April 2022 – 31 December 2022
Context War in Ukraine
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
Measure added 12 May 2022 (updated 13 September 2022)

Background information

The war in Ukraine has increased economic and political uncertainty, and has led to higher commodity prices. Rising electricity prices and their effect on inflation also affect households' disposable income, in particular that of the most vulnerable.

Against this background, the Spanish government has decided to promote the "National Response Plan to the economic and social consequences of the war in Ukraine" (Royal Decree-Law 6/2022 of 19 July). The basic objectives of the measures that make up this Plan are to lower energy prices, support the most affected sectors and the most vulnerable groups, and reinforce price stability. The aim is to limit the economic and social costs of this temporary distortion in gas prices and to facilitate the adaptation of the Spanish economy. This support is additional to other existing support measures within Royal Decree-Law 6/2022 (also described in this database), such as:

Content of measure

Royal Decree-Law 6/2022, which approves the "National Plan of response to the economic and social consequences of the war in Ukraine", states that recipients of the minimum living income will receive a 15% increase in the monthly payments of April, May and June 2022.

The increase will be made on the whole payment, i.e. including supplements (e.g. including the child allowance, in force since 1 January 2022, which provides for an allowance of €100 per child under 3 years old, €70 for children between 3 and 6 years old and €50 per child between 6 and 18 years old). The calculation of the increase does not include the amounts corresponding to previous periods, as well as other non-monthly concepts that may have accumulated.

This increase will also apply to applications for the minimum living income that have been submitted by the date of entry into force of the Royal Decree-Law (30 March 2022), but have not been resolved, and also to applications submitted after the entry into force, provided that the effects of their recognition are not later than 1 June 2022.

Updates

The following updates to this measure have been made after it came into effect.

26 June 2022

Royal Decree-Act 11/2022 (published on 26 June 2022) extends the validity of this measure until 31 December 2022 (Royal Decree-Act 6/2022, March 2022, approved initial validity until 30 June 2022).

Use of measure

There are no estimated number of users. All Spanish citizens who meet the requirements can benefit from this measure.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Other groups of citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

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

Trade unions Employers' organisations
Role Informed Informed
Form Not applicable Not applicable

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

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

Involvement

As stated in the background section, this measure is part of the "National Response Plan to the economic and social consequences of the war in Ukraine", and the involvement of social partners is explained for this plan as a whole.

With the aim of reaching a consensus with all interest groups on the "National Response Plan to the economic and social consequences of the war in Ukraine" (Royal Decree-Law 6/2022 of 19 July), the Government, prior to its approval, held a round of contacts with parliamentary groups, social agents, and the autonomous communities (regional governments). On 21 March 2022, the meeting of the "Social Dialogue Table" was held, following on from the meeting held on 7 March with the President of the Government. The representatives of workers and employers had the opportunity to share their proposals for dealing with the economic impact of the war. On the employers' side, the president of the CEOE, Antonio Garamendi, and the president of CEPYME, Gerardo Cuevas, attended; and on the workers' side, the secretary general of UGT, Pepe Álvarez, and the secretary general of CCOO, Unai Sordo.

Views and reactions

There are no specific views from social partners on this measure in particular. Concerning the "National Response Plan to the economic and social consequences of the war in Ukraine" as a whole, the unions looked at the huge profits of electricity companies as one of the points to act on. CCOO also proposed to the government to intervene and limit the price of the most expensive raw materials, both for companies and households (gas, electricity and fuel).

From the employers' side, Garamendi (President of CEOE) warned about the temptation for companies to contain dividends, as they can generate mistrust and discourage investment. The president of the employers' association expressed his support for the decisions taken by the European Union and the government since the war began, but called for action to be taken quickly to avoid greater consequences.

Sources

  • 29 March 2022: La Moncloa. Presidency of the Government. Agreements and regulations approved by the Council of Ministers (www.lamoncloa.gob.es)
  • 30 March 2022: BOE, Spanish State Official Gazette (Real Decreto-ley 6/2022, de 29 de marzo, por el que se adoptan medidas urgentes en el marco del Plan Nacional de respuesta a las consecuencias económicas y sociales de la guerra en Ucrania) (www.boe.es)
  • 25 June 2022: Royal Decree-Law 11/2022 (boe.es)

Citation

Eurofound (2022), Temporary increase in the minimum living income, measure ES-2022-14/2249 (measures in Spain), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/ES-2022-14_2249.html

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