National Minimum Income (NMI). Who and how much can earned?

The Government approved only a few days ago the National Minimum Income to fight poverty, in the form of monthly income for the most disadvantaged families, between € 462 and € 1,015 per month. It will be compatible with other types of low income, from other social aids or sporadic jobs. Thus, the new benefit will cover the difference between the existing income and the threshold set for that type of family.

The Government has already published other type of benefits for families and professionals.

What amount will NMI entail?

The amount of the NMI will range:

• from € 462 per month in 12 payments, in the case of a single adult living alone (similar to a non-contributory pension)
• up to a maximum of € 1,005 per month in 12 payments.

A different NMI will be assigned to each particular case, increasing according to the number of people in the family unit, up to a maximum of € 1,005 per month.

Through the following simulator you can check if you meet the necessary requirements to receive the Minimum Vital Income benefit, and know the approximate amount that would correspond to you (click here)

What families can request it?

The amount that each person / family receives for the National Minimum Income will be based on the earnings, number of members and children that the family has. Thus, for example, a household made up of an adult and a child will receive € 8,418 per year. A household made up of 2 adults and 2 children will receive 10,523 euros per year.

The Administration that manages it (the National Institute of Social Security -INSS- in Spain), to grant the benefit will take into account, among other things, that the income of the family unit does not exceed the amounts set to grant the benefit. Thus, the Administration will not only take into account the income of the family unit, but will also do a wealth test (that the beneficiary does not exceed a certain threshold of wealth, discounting the habitual residence).

The benefit will be given in 12 payments and may be requested from next June 15, with retroactive effect from June 1.

National Minimum Income: benefits approved for families and people and economic vulnerability

What requirements must the beneficiaries meet?

To be entitled to the benefit it is necessary to meet the following requirements:

– Be between 23 and 65 years old, unless they are responsible for children. In the case of women victims of gender violence, or trafficking in human beings, the age of majority will suffice.

– Demonstrate that the family, or coexistence unit, was established at least 3 years ago. If there are minors, the requirement is only 1 year.

– Demonstrate low income, below said thresholds

– Be residing legally for a year in Spain

– Be targeted for unemployment, without having to have contributed before

– Do not exceed a wealth threshold. The assets of the beneficiaries may not exceed € 16,614 a year, amount that will be increased according to the size of the family unit, discounting debts and habitual residence. The wealth limit will be 44,196 euros in the largest households (such as two adults and three or more minors, or four adults and one minor)

The beneficiaries of this aid will be obliged to make the income tax return in the personal as Spanish IRPF.

Is National Minimum Income compatible with other salary income?

Yes, it will, for a certain period. If a person who collects the NMI gets a job, and thereby is excluded from receiving the NMI, the new salary income will not count for a time.

Where is this benefit requested?

The NMI can be requested:

• through Social Security Administration
• through Town Councils with which agreements are established
• through a 900 phone

In addition, the Government has announced that in June it will pay ex-officio (without having requested it) the NMI to 100,000 families that Social Security already knows meet the extreme vulnerability requirement. For example, to all those who already receive a benefit for having a dependent child.

What is the necessary documentation to process the application?

The NMI applicant will need to prove:

• Age: 23 years old (or 18 years old if you have dependent children)
• residence in Spain for more than 1 year

The Administration itself will check the other requirements (income in 2019 and the applicant’s assets).

If the applicant’s income during the year 2020 is of economic vulnerability caused by the Covid-19, with income below the minimum guaranteed income that corresponds to it, the latter may submit an affidavit to access the National Minimum Income, provided that his or her assets are below the required threshold.

Since when can the NMI be gotten?

Since June 15, 2020.

Requests registered between June 15 and September 15 will receive the benefit retroactively, from June 1.

Some families will receive the first income at the end of June.

How long may are beneficiaries entitled to get the aid?

Families will receive the National Minimum Income for as long as they can prove their situation of vulnerability.

The Administration will regularly check that the beneficiary continues to meet the requirements to receive the benefit. And the beneficiary has the obligation to communicate any change that affects the payment of the benefit in the 30 days following said change.

If you are having difficulties with renting a home or a commercial premises, due to the social and economic situation caused by the COVID-19, do not hesitate to contact the Pérez Parras Economistas y Abogados firm for advice.