SPAIN BEGAN TO PAY NON-REPAYABLE ALLOWANCES TO ITS RESIDENTS

The authorities of Spain decided to pay non – repayable allowances to the residents of the country. The minimum subsistence income program, according to which about 850 thousand families (about 2.3 million people) can receive money from the state treasury, has already been started.  

More than a quarter of a million people have received the first tranche from the state Since 26 June, 2020, half of whom are under-aged.  

The position of the country's authorities is understandable, given the scale of the economic damage suffered by the country due to the pandemic. Over the past few months alone, more than 100 thousand enterprises have gone bankrupt. The experts noted that the contraction of GDP this year could be up to 15%. Considering this, the authorities began to discuss possible assistance for the affected families back in April.

According to the adopted normative acts, the most vulnerable groups of the population will receive the benefits on a first-priority basis.

The recipients will be households, ranging from single-living citizens to families of five or more people - the first will receive € 461.5 per adult. In the multi-person households, each family member will receive an additional sum of € 139. Thus, the maximum monthly allowance for the family of five people (two adults with three children or three adults with two children) will be € 1015.

The task of such social protection of families is to compensate for the difference between family income (including salaries) and the threshold of “guaranteed income” established by law. The country's ministry responsible for the action notes that social security measures are not temporary and will continue even after the pandemic.

For the single-parent families, the state guarantees the incomes from € 700 to € 977, depending on the number of children.

In fiscal year 2020, the statutory amount of guaranteed annual income is € 5,538 per person. According to the estimates of the social security services of Spain, there are around 550 thousand families suffering from extreme poverty, the incomes of which are less than € 230 per month. The government support measures will allow 80% of such households to get out of this situation.   

It is noted that in order to receive the state support, the citizens will have to declare their incomes, including the costs of housing fees. The assets should not exceed guaranteed income more than three times. Not only citizens of Spain, but all the residents of the country aged 23 to 65, who have lived in the kingdom for at least three years and have paid social security contributions for at least a year, will be able to apply for assistance.

For dependent children under the age of 18, the annual legal residence in Spain is enough.

Special exemptions have also been made for women who are the victims of sexual abuse, sexual exploitation or trafficking.