Social Security registers a deficit of 287 million until August, with record income from contributions

MADRID, 30 Sep. (EUROPA PRESS) -

Social Security recorded a deficit of 287 million euros in the first eight months of the year, the equivalent of 0.02% of GDP, after entering 121,395 million euros in this period, 8.1% more, compared to expenses worth 121,682 million (4.2% year-on-year), according to data published this Friday by the Ministry of Inclusion, Social Security and Migration.

The Department headed by José Luis Escrivá has highlighted that the system's deficit is being reduced by the good performance of income from social security contributions, whose year-on-year increase exceeds that of pension spending by 2.5 points.

Specifically, income from contributions increased by 9% year-on-year in the first eight months, to 92,655 million euros, a new all-time high for this period in the last 15 years.

If the income from contributions this year is compared with that of 2019, the last year not affected by the pandemic, the increase reaches 12.7%, with 10,428 million euros more in collection.

The rise in income from quotas was driven by the contributions of the employed, which increased by 10.2% until August, to 87,146 million euros, while those made by the unemployed decreased by 7.9%, to 5,519 million, due to the lower number of unemployed.

Transfers received by Social Security amounted to 27,887 million euros up to August, with a year-on-year increase of 5.1%.

The most significant item corresponds to the transfers received from the State and Autonomous Organisms, which increased by 4.8%, to 24,660 million, due, above all, to transfers for compliance with the first recommendation of the Toledo Pact (download to the Social Security of 'improper expenses' to be assumed by the State), which have meant 1,308 million euros more.

SPENDING ON PENSIONS INCREASES BY 4.4%

On the expenditure side, economic benefits to families and institutions reached 114,234 million euros until August, 4.5% more than in the same period of 2021. This figure represents 93.9% of the total expenditure made in the Social Security system.

The largest item, amounting to 105,051 million, corresponds to pensions and contributory benefits, with an annual growth of 4.4%.

Specifically, spending on contributory pensions for disability, retirement, widowhood, orphanhood and in favor of family members increased by 6.5%, to 92,979 million euros, as a result of the greater number of pensioners (0.9%), the increase in the average pension by 5.3% and the revaluation of contributory pensions.

As for benefits for the birth and care of a minor, co-responsibility in the care of the infant, risk during pregnancy and during breastfeeding and care of minors due to cancer or other illness, spending rose to 2,513 million euros , 13.5% more.

INCREASE IT SPENDING

For its part, total spending on temporary disability (IT) increased by 8% in the first eight months, to 8,886 million euros.

Pensions and non-contributory benefits, including supplements for minimum contributory pensions, amounted to 9,184 million euros until August, 6.3% more than in the same period of 2021. This increase is the result of the general revaluation of pensions minimum and non-contributory by 3%.

Of this amount, 6,217 million euros (3.7%) were allocated to non-contributory pensions and minimum supplements, and 2,967 million euros to subsidies and other benefits, of which 2,797 million corresponded to the Minimum Vital Income (IMV) and family benefits, 12.5% ​​more than in the same period of 2021.

The Ministry has specified that this rebound is mainly due to the temporary increase of 15% in the amount of the IMV that has been applied since last April.