The Superior Court of Justice of Andalusia approves the Social Security criterion of withdrawing the Minimum Living Income from a woman who received 2,234.75 euros in compensation for dismissal. The court explains that, although the Treasury does not charge taxes for the legal compensation for a dismissal, the law on this aid does not leave it out when counting income.
The woman, who lives alone, was fired in 2018, but a year later a court in Granada declared the dismissal unfair, with compensation and processing salaries (what she had to earn from dismissal until sentencing) borne by the company. The problem is that part of that money ended up being paid by FOGASA in 2021 (the public fund that pays salaries and compensation when the company is insolvent or is in bankruptcy).
That same year he was already collecting the Minimum Living Income, which was approved with an amount of 69.93 euros per month, but in December 2022 Social Security informed him that, according to Treasury data, in 2021 he had earned 9,896.59 euros, more than the guaranteed income of 2022 for a single person (the income limit of the aid, 5,899.56 euros). By exceeding the income limit, the IMV was withdrawn from January 1, 2022, he was no longer in a vulnerable situation, these being one of the reasons why Social Security can remove the Minimum Living Income.
The woman alleged to Social Security that in 2021 she had only collected the IMV and the FOGASA payment for that dismissal, but this was rejected, explaining that “the compensation is not exempt from calculation for IMV purposes.”
Meanwhile, he had asked the Treasury to rectify his 2021 Income Tax return and managed to keep the processing salaries at 4,555.06 euros. Even so, when adding compensation, their income reached 6,789.81 euros. Another court in Granada dismissed her claim in June 2025 and she decided to appeal to the TSJ.
The IMV law only excludes the exempt income that it names
The Superior Court of Justice ruled in favor of Social Security, explaining that Law 19/2021, which regulates the Minimum Living Income, indicates in its article 20 that the income that does not count for aid is the one that appears as exempt in the Personal Income Tax Law, where it leaves out compensation for dismissal. For this reason, “the severance pay is not exempt from the calculation of income,” the Court reports.
In the case of unemployment benefits, although it is also a non-contributory benefit, it is different, since the General Social Security Law does not count the legal compensation for dismissal as income and only adds what is charged above, as confirmed by the ruling of the Supreme Court in the case of a former bank worker who ended up in an ERE.
Nor did it help him to deduct what he paid to his social graduate for the lawsuits against the company (in 2021 alone he transferred 1,719.17 euros), because, according to the Court, “there is no legal provision that allows the amount of the computable income to be reduced by its amount.”
They deny the Minimum Living Income to a father because his three children under 14 years of age did not have a DNI, although it is not mandatory until that age, and the TSJ of Madrid confirms it
They approve the Minimum Living Income without you asking for it; Then they tell him by letter that he has no right to it and, if he does not appeal, he must return 14,498.30 euros to Social Security.
In this way, the TSJ has rejected her appeal (the ruling can be read on the Judiciary website) and confirms that, with the compensation, the woman exceeded the income limit by 890.25 euros, so she was not entitled to aid since January 2022.