Social Security registers a surplus of 4,774 million until July after record contributions

Social Security recorded a positive balance of 4,774 million euros in the first seven months of the year, equivalent to 0.3% of GDP, after entering 123,307 million euros in this period, 13.7% more, compared to some expenses worth 118,533 million (10.1% year-on-year), according to data published this Monday by the Ministry of Inclusion, Social Security and Migration.

This positive balance of Social Security has occurred after the system achieved a new historical maximum in income from contributions until July, with 88,999 million euros, 10.2% more than in the same period of 2022, the highest year-on-year growth in 16 years in a January-July period.

Discounting the income from the Intergenerational Equity Mechanism (MEI), collection from fees grew by 8.4% year-on-year until July.

If this year's contribution income is compared with that of 2019, the last year not affected by the pandemic, the increase in contribution collection reaches 24%, with 17,254 million euros more than then.

The rise in contribution income was driven by the contributions of employed persons, which increased between January and July by 10.3% year-on-year, up to 83,699 million euros, due to "the good performance of employment", while made by the unemployed increased by 9.3%, to 5.3 billion euros.

In cash terms, the system's net collection between January and July reached 119,108 million euros, 11.1% more, in contrast to expenses worth 118,264 million, 9.9% more than in the same period. from last year.

Transfers received by Social Security amounted to 32,351 million euros in the first seven months of the year, with a year-on-year increase of 20%.

The most significant item corresponds to the transfers received from the State and Autonomous Organizations, which increased by 23.4%, up to 29,721 million euros. The Ministry has explained that this increase is due to the greater receipt of funds to guarantee compliance with the First Recommendation of the Toledo Pact, regarding the separation of financing sources.

EXPENDITURE ON CONTRIBUTORY PENSIONS INCREASES BY 10.7%

On the expenditure side, economic benefits to families and institutions reached 110,761 million euros until July, 9.3% more than in the same period of 2022. This figure represents 93.4% of the total expenditure made in the Social Security system.

The largest item, amounting to 101,783 million, corresponds to pensions and contributory benefits, with an annual growth of 9.3%.

Specifically, spending on contributory pensions for disability, retirement, widowhood, orphanhood and for family members increased by 10.7%, up to 91,326 million euros, as a result of the greater number of pensioners (1.1%), the increase in the average pension by 9.6% and the general revaluation of contributory pensions by 8.5% for this year.

With regard to benefits for birth and care of minors, co-responsibility in infant care, risk during pregnancy and during breast-feeding, and care for minors due to cancer or another disease, spending rose to 2,308 million euros. , 7% more.

For its part, spending on subsidies for temporary disability (IT) decreased by 1.3% in the first seven months, to 7,696 million euros.

To pensions and non-contributory benefits, including minimum supplements to contributory pensions, 5,901 million euros were allocated until July, 7.1% more than in the same period in 2022, while 3,077 were allocated to subsidies and other benefits. million euros, 14.5% more. Within this last amount, 2,915 million corresponded to the Minimum Living Income (IMV) and family benefits, 14.7% more than in the first seven months of 2022.