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Spain’s Minimum Vital Income Covers Under Half of Eligible Households and Deters Employment, Audit Finds

AIReF flagged high non-application rates despite improved beneficiary numbers alongside faster processing.

La presidenta de la Airef, Cristina Herrero, y el director de Evaluación del organismo, José María Casado.
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Overview

  • By the end of 2024 the IMV scheme reached just 42% of eligible households and only 23% of families qualified for the child supplement received it.
  • More than half of potential IMV recipients and 72% of those eligible for the child supplement never applied for the benefits.
  • The benefit lowers recipients’ probability of working by three percentage points and cuts monthly workdays by 0.6 on average, with individuals under 30 and single-parent households facing reductions over 20%.
  • Annual uptake rose 14% for the main IMV to 392,444 households and 34% for the child supplement to 452,234 families, while average processing times fell by 45 days to 203 days.
  • AIReF warned that the 2023 employment incentive is undermined by outdated tax data, a lack of guaranteed duration and no mechanisms to speed up labor-market re-entry.