Social Security has published the monthly execution of the budget, the periodic report in which it includes the balance of expenditure and revenue of the Administration. Expenditure on temporary incapacity benefits (IT) increased by 17.6% over the first eight months, to 10.422 million euros. The bill for temporary sick leave already represents 86% of the estimated budget for the entire year. However, this expenditure forecast was exceeded and Sick leave forced Social Security to revise the budget for this item upwards by 3.2 billion.
Social Security recorded a positive balance of 1,619 million euros during the first eight months of the year, equivalent to 0.1% of GDP, after having recorded 145,585 million euros over this period, or 6.6 % more, compared to certain expenses worth 143,966 million (+7.6% year on year).
The million dollar aid received in the form of transfers from the Treasury and the higher income from social contributions reflect this positive result until August. The system received 109.740 million euros in contributions, or 7.9% more than during the first eight months of 2023 and 33.4% more compared to 2019, the last year not affected by the pandemic. For his part, The injection received by Social Security exceeds 34 billion.
The quota that will pay part of the pensions of baby boomers without generating a greater pension right, the so-called Intergenerational Equity Mechanism (MEI), in force since January 2023, amounted to 2.443 million euros until ‘in August, 42.7% more than over the same period of 2023.
The increase in contribution income until August was driven by employee contributions, which increased by 7.8% year-on-year, to 103.604 million euros, while those of the unemployed increased by 8.5%. , at 6.137 million euros.
For their part, the data until July (latest data available) show a positive balance of 4.033 million euros for 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 August 144.059 million euros, an increase of 7.6%, while payments increased by 7.7%, reaching 143.694 million euros. .
Retirement costs
On the expenditure side, economic benefits to families and institutions reached 135.330 million euros until August, or 8.2% more than during the same period of 2023. This figure represents 94% of the total expenditure made in the social security system. The largest item, amounting to 124.236 million, corresponds to pensions and contributory benefitswith an annual growth of 8%.
Concretely, expenditure on contributory pensions for disability, retirement, widowhood, orphans, for family members and supplements intended to reduce the gender gap increased by 7.3%, to 110,461 million euros, due to the increase in the number of retirees (+1.4%). ), the increase in the average pension by 5.1% and the general revaluation of contributory pensions by 3.8% for this year.
Concerning benefits for the birth and care of a minor, co-responsibility in the care of the infant, risks during pregnancy and breastfeeding, and care of minors due to cancer or other illness, expenses increased to 2,859 million euros, or 7.6%. more.
For their part, the aforementioned expenditure on temporary incapacity aid (TI) jumped by 17.6% during the first eight months, up to 10.422 million euros.
To non-contributory pensions, including minimum supplements for contributory pensions, 11,094 million euros were allocated until August, i.e. 9.8% more than in the same period of 2023, due to the revaluation of 6.9% applied this year at the non-contributory level.
Of this amount, 7,148 million euros were devoted to non-contributory pensions and minimum supplements (+7.6%)while subsidies and other non-contributory benefits corresponded to 3,946 million euros, or 14.2% more. Within this last figure, 3.669 million corresponded to the Minimum Living Income (IMV) and family benefits, i.e. 12.3% more than during the first eight months of 2023.
