THE Social security recorded a positive balance of 3,101 million euros in the first seven months of the year, or 0.2% of the GDPafter registering 130,577 million euros over this period, or 5.9% more, compared to expenditure worth 127,476 million (+7.5% over one year), according to data published this Wednesday by the Ministry of Inclusion, Social Security and Migration.
This positive balance of Social Security occurred after the system collected 95,660 million euros by contributions, 7.5% more than in the first seven months of 2023 and 33.3% more compared to 2019, the last year not affected by the pandemic.
Income from the Intergenerational Equity Mechanism (IEM), in force since January 2023, generated 2.122 million euros until July, 45% more than in the same period of 2023.
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.
On the other hand, 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 over the first seven months, an increase of 3.9% over a year.
The largest item corresponds to transfers received from the State and autonomous bodies, which increased by 2.9%, up to 30.578 million euros, due, fundamentally, to the greater receipt of funds to guarantee compliance with the first recommendation of the Toledo Pact, relating to the separation of sources of financing of social security.
IT Grant Expenditure
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 their part, expenditure on temporary incapacity benefits (IT) jumped by 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.
