Spain's Prime Minister Mariano Rayor signed the package Monday that mainly aims to help unemployed citizens who were unable to overcome the consequences of the 2008 economic crisis.
Speaking at the signing ceremony, Rayor said the consequences of the crisis were still visible in Spanish economy.
Rayor acknowledged Spain had failed to meet the expectations of its peoples. He said Spain was still recovering from the harsh consequences of the 2008 and 2012 economic crises.
According to the new social aid package, unemployed persons will receive a monthly allowance of $529. It comes into effect on Jan. 15, 2015 and will run until April 15, 2016.
The secretary-general of the Spanish Workers' Commissions trade union, Fernandez Toxo, said the social protection funds significantly dropped after more than three years of economic crises.
Toxo said about 450,000 people would benefit from the new social aid package and it would cost the Spanish government about $1.5 billion.
In 2008, the Spanish economy was left paralyzed by an international financial crisis that severely impacted Europe. Spain has been since struggling with the consequences of the crisis, which led to the bankruptcy of major companies and high increase in unemployment.