This paper explores the history of creating the idea of universal basic income and the ideological beliefs on which it is based. This paper defines its meaning and explains its most important elements. In addition, it re-examines different theoretical concepts and experiences of its application from the 19th century to today. The concept of universal income is considered in the context of a potential instrument of social policy and as such is indexed its advantages and disadvantages. It is obvious that there is a high interest in this topic among experts in the field, and this interest in recent years goes beyond the theoretical frameworks of its creators and it transfuses into practical application, from Western countries to developing countries. This paper seeks to elaborate the need to incorporate the topic of universal basic income into the agenda of the social policy makers in Croatia, because it contains mechanisms for dealing with inevitable changes in society and the labor market. Universal basic income is not elaborated enough for overall implementation, but with conducting experiments and pilot projects, we are opening up the possibility for it and creating the need for discussion at a higher level. Given this, it is necessary to follow the trends of current social policies in the world and to consider the possibility of applying such model in Croatian circumstances. This paper seeks to provide basic information about this term and its limitations.