A monthly payment for households with very low income

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1. It creates the ingreso mínimo vital (minimum vital income): a non-contributory Social Security benefit that guarantees a minimum income level for people living alone or in a cohabitation unit who lack sufficient resources.
2. The monthly amount is the difference between the guaranteed income and the household's income. For a person living alone, the guaranteed income equals 100 percent of the annual amount of non-contributory pensions divided by twelve, and it rises with the number of members of the cohabitation unit.
3. To qualify, applicants must have residence in Spain (at least one year) and be in a situation of economic vulnerability: income below the guaranteed income and assets below the set limits, excluding the main home.
4. The benefit is compatible with income from work or self-employment, within limits and conditions to be set by regulation, so that taking a job is not discouraged.
5. It creates a childhood support supplement: a monthly amount for each minor in the cohabitation unit, of 100 euros per month for children under three, 70 euros from three to six, and 50 euros from six to eighteen.
6. The right starts on the first day of the month after the application, is paid monthly by bank transfer, and lasts as long as the reasons for the award remain. Beneficiaries must report relevant changes within thirty calendar days.
7. Anyone who falsifies data or hides changes to wrongly collect the benefit can be sanctioned with loss of the benefit for up to six months, termination of the right, and a ban on applying again for two or five years, in addition to repaying what was received.
8. The law enters into force on January 1, 2022, and applications filed before January 1, 2021 have economic effects retroactive to June 1, 2020 if all requirements were met on that date.

Who it affects

• People living alone with very low income: They can apply from age 23, with exceptions for victims of gender violencegender violence Violence a woman suffers from a current or former partner because she is a woman., trafficking, or young people formerly in state care.
• Households of several people related by family or partnership ties: They apply as a cohabitation unit and receive an amount that grows with its members.
• Single-parent families and households with minors: They have specific supplements: the single-parent supplement and the childhood support supplement for each minor.
• People with a recognized disability of 65 percent or more: Their guaranteed income is increased by a 22 percent supplement.
• Companies that hire recipients of the minimum vital income: They may be distinguished with the Social Inclusion Seal (Sello de Inclusión Social).

Words worth knowing

Prestación no contributiva (non-contributory benefit)

A Social Security payment received without prior contributions, granted based on need.

Unidad de convivencia (cohabitation unit)

A group of people living in the same home, linked by marriage, registered partnership, or kinship up to the second degree.

Renta garantizada (guaranteed income)

The maximum amount the minimum vital income can pay; the benefit covers the gap between that amount and the household's actual income.

Patrimonio neto (net worth)

The value of the applicant's assets and money, minus debts and excluding the main home.

Test de activos (asset test)

A check of the value of bank accounts, properties, and other assets: if it exceeds a set limit, there is no right to the benefit.

gender violence

Violence a woman suffers from a current or former partner because she is a woman.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries