Social Security recorded a positive balance of 3,101 million euros in the first seven months of the year, equivalent to 0.2% of GDP, after registering 130,577 million euros in this period, 5.9% more, compared to certain expenses worth 127,476 million (+7.5% year-on-year), according to data published this Wednesday by the Ministry of Inclusion, Social Security and Migration. Social contributions brought in 95,660 million euros, 7.5% more than the previous year. State aid based on extendible credits to pay part of the benefits increased by almost 10% and contributes to covering the deficit.
The rate that will pay part of the baby boom profits in the 1930s and 1940s has brought in 2.1 billion until the seventh month of the year, 45% more than in the same period of 2023. The so-called intergenerational equity mechanism came into effect in January last year and was raised, as expected, from 0.5% to 0.6% of workers’ payroll from January 2024.
The increase in contribution income until July was driven by employee contributions, which increased by 7.8% year-on-year, to 90.242 million euros, while those of the unemployed increased by 2.2%, to 5.418 million euros.
For their part, the data up to June (latest available data) show a positive balance of 3.674 million euros for the social security funds, which include, in addition to the system, data from the Wage Guarantee Fund (Fogasa) and the Spanish Public Employment Service (SEPE).
In terms of cash, the net collection of the system reached until July 127.861 million euros, an increase of 7.4%, while payments increased by 7.6%, reaching 127.270 million euros. Transfers received by Social Security amounted to 33.602 million euros in the first seven monthswith an increase over one year of almost 10%, mainly due to the recommendation of the Toledo Pact to separate the financing of non-contributory benefits.
Temporary disability benefits: 18% more
On the expenditure side, economic benefits to families and institutions reached 119.854 million euros until July, 8.2% more than in the same period of 2023. This figure represents 94% of the total expenditure made in the social security system.
The largest item, amounting to 110.017 million, corresponds to pensions and contributory benefits, with an annual growth of 8.1%.
Specifically, expenditure on contributory pensions for disability, retirement, widowhood, orphans, family members and supplements to reduce the gender gap increased by 7.3% to EUR 98,025 million, due to the increase in the number of retirees (+1.3%), the increase in the average pension by 5% and the general revaluation of contributory pensions by 3.8% for this year.
Regarding benefits for the birth and care of a minor, joint responsibility in the care of the infant, risks during pregnancy and breastfeeding and care of minors due to cancer or other illness, expenditure increased to 2,484 million euros, or 7.7% more.
For his part, the expenditure on temporary disability (TD) grants It jumped 17.8% over the first seven months, to 9,066 million euros.
For non-contributory pensions, including minimum supplements for contributory pensions, 9.837 million euros have been allocated until July, 9.6% more than in the same period of 2023, due to the 6.9% revaluation applied this year to the non-contributory level.
Of this amount, 6,357 million euros were allocated to non-contributory pensions and minimum supplements (+7.7%), while 3,480 million euros corresponded to subsidies and other non-contributory benefits, i.e. 13.1% more. Within this last figure, 3.233 million corresponded to the Minimum Living Income (IMV) and family benefits, i.e. 10.9% more than in the first seven months of 2023.
