Income from Social Security contributions grows to 69,051 million until June and reaches its maximum of 15 years

MADRID, 29 Jul. (EUROPA PRESS) -

Income from Social Security contributions has grown by 8.4% in the first six months of the year compared to the 2021 financial year (5,325 million euros more), up to a total of 69,051 million euros, according to the data provided this Friday by the Ministry of Inclusion, Social Security and Migration.

In this way, the growth of income from social contributions reaches its historical maximum in the last 15 years, in the accumulated January-June, only behind 2007, a year of intense job creation.

Compared to the data for the last year that was not affected by the pandemic, 2019, the increase in prices is 12.7%, which means 7,755 million euros more. "The increase in employment continues to boost income from Social Security contributions," says the Ministry led by José Luis Escrivá.

In addition, the growth in contributions exceeds by more than two points the increase in pension spending in the January-June period, thereby helping to reduce the system's deficit.

As a whole, the Social Security accounts show a positive balance, as of June 30, 2022, of 10,511 million euros. This figure is obtained from the difference between recognized rights for non-financial operations of 93,512 million euros, which show an increase of 11.2%, and recognized obligations of 83,001 million, which grow by 3.3% year-on-year.

In terms of cash, the net collection of the system reaches 92,432 million euros, with an increase of 11.5% compared to the previous year, while payments show an increase of 3.4%, up to 82,907 million.

The increase in income from contributions is driven by the evolution of income from contributions from employed people, which reflects the dynamism of employment and experienced a year-on-year increase of 9.7% to reach 64,832 million euros (5,736 million euros more), while that the contributions of the unemployed registered a decrease of 8.9% (411 million euros less), as a consequence of the decrease in their number.

On his side, the transfers received by Social Security amounted to 23,858 million euros, with an increase of 20% year-on-year. The most significant item corresponds to the transfers received from the State and Autonomous Bodies, which add up to a total of 21,645 million (22.1% more).

On the spending side, economic benefits to families and institutions reached 77,563 million, 3.9% more than in the same period of 2021. This figure represents 93.5% of the total spending made in the Social Security system. The largest item, 71,108 million, corresponds to pensions and contributory benefits, with an increase of 3.6%

In a detailed analysis of the contributory area, spending on pensions (permanent disability, retirement, widowhood, orphanhood and in favor of relatives) increased by 6.3% to 62,011 million euros, due to the increase in the number of pensioners (0 .8%), to the increase in the average pension (5.5%), as well as to the general revaluation of 2.5% for contributory pensions in compliance with the new law, which guarantees the purchasing power of pensions.

"In this way, the rate of increase in income from contributions is two percentage points higher than that of spending on pensions," explains the Ministry of Inclusion, Social Security and Migration through a statement.

Regarding temporary disability subsidies, total spending increased by 7% compared to the same period of the previous year, reaching 6,717 million euros, while benefits for birth and care of minors, co-responsibility in the care of infants, risk during pregnancy and during breastfeeding and care of minors affected by cancer or another illness increased by 15.6% year-on-year, reaching 1,854 million.

Pensions and non-contributory benefits, including supplements for minimum contributory pensions, reached 6,454 million euros, 7.4% more than in the same period of the previous year, which includes -among other factors- the general revaluation of the 3% for minimum and non-contributory pensions.

Of this amount, non-contributory pensions and supplements are allocated for a minimum of 4,304 million (2.8% more), and subsidies and other benefits of 2,151 million, of which 2,023 million euros correspond to Minimum Vital Income and family benefits, a 18.2% more than the previous year, due to the increase in the number of benefits and the temporary increase in the 15% benefit, which has been applied since April.