Effects of the Increase in Labor Costs in the Home Help Service in Spain

The home care service aims to “provide personal assistance and specific services at the homes of various individuals, including the elderly, people with disabilities, the sick, dysfunctional families, children, etc.” (Soto, 2005), or is defined as one that involves the daily care of dependent individuals to enable them to continue living within their environment (Recio, 2014). Recent labor regulatory changes implemented in Spain in recent years have led to an increase in labor costs across various economic sectors, including the sector under study. This increase in costs directly affects the financial capacity of users, as in most cases, they contribute with a co-payment for the services provided at their homes by service providers, who are primarily compensated through the economic benefits tied to the service that users receive, which have been granted to them through the corresponding administrative procedure. An adequate understanding of these costs is a fundamental element in analyzing the viability of the dependency system in Spain and facilitates the adoption of appropriate labor and business decisions for the proper management of home care services.