international employment law firm alliance L&E Global

2. State Aid

Government subsidies and special relief resources allocated to support employers, and workers, in their efforts to maintain employment and pull through the crisis.

  • Unemployment benefit: Employees affected by a Temporary Workforce Restructuring File (ERTE) due to COVID-19 will be entitled to an unemployment benefit up to 70% of their base salary for the first 180 days and 50% thereafter. Employees will be entitled to this benefit even if they lack the minimum period of paid employment necessary for it. The period during which employees receive such unemployment benefits will not count as towards “regular” unemployment used by the employee, which has a maximum period of use.
  • Minimum Vital Income: Royal Decree Law 20/2020 of May 29th, grants an aid called Minimum Vital Income (MVI) “ingreso mínimo vital” as a benefit aimed at preventing the risk of poverty and social exclusion of people living alone or integrated into a unit of coexistence, when they are in a situation of vulnerability because of the lack of sufficient economic resources to cover their basic needs. The amount of the MVI will depend on the income each family has, so the State will contribute with the amount missing to reach the guaranteed minimum.
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