Social Security registers a negative balance of 2,749.83 million euros

Of the total volume of recognized rights, 90.84% ​​correspond to the management entities and common services of Social Security and the remaining 9.16% to mutual collaborators with Social Security. Regarding the obligations, 87.66% has been recognized by the managing entities and 12.34% by the mutual companies. In cash terms, the liquid collection of the system reaches 59,014.49 million euros, an increase of 1.15% compared to the previous year. For their part, payments presented an increase of 8.22%, to a total of 62,815.33 million euros.

Impact of COVID-19 on income In May, there was a decrease in the price of employed persons due to the COVID-19 pandemic. Measures such as the exemption of quotas for companies covered by Temporary Employment Regulatory Records due to force majeure or the extraordinary benefit for the self-employed – which also entails the exemption of quotas – are estimated to have had an impact on the reduction of accumulated income around 1,247 million euros, 2.49% of trading income, until May 31.

To this are added other exceptional measures applied by the General Treasury of Social Security such as moratoriums on the payment of contributions to companies and self-employed workers who have had a decrease in activity. On the other hand, it is worth noting the record of the returns of the contributions of self-employed workers that at May 31 are estimated at 229.92 million euros, which represents an increase of 160.78 million more than in the same period of the year previous. Current transfers increase 3.49% to 9,547.04 million compared to the same period of the previous year. The most representative item is transfers from the State and Autonomous Organizations where there has been an increase of 390.08 million, 5.15% more. The variation in these concepts is mainly due to the lag in the calendar of transfers made by the State to Social Security.

Non-financial expenses

The economic benefits to families and institutions totaled 59,241.44 million, 8.56% more than in the same period of 2019. This figure represents 94.17% of the total expenditure made in the Social Security system. The largest item, 54,976.66 million corresponds to pensions and contributory benefits, with a year-on-year growth of 9.17%.

Contributory pensions (disability, retirement, widowhood, orphanhood and in favor of family members) rise 3.26% to 47,092.24 million. This increase has its origin in the reduction in the number of pensioners (0.48%), in the increase in the average pension (2.03%), as well as in the revaluation of contributory pensions in 2020 (0.9 %) approved by the Royal Decree-law of March 14.

In terms of benefits for birth and child care, co-responsibility in infant care, risk during pregnancy and during breastfeeding, and child care for cancer or other disease rose to 1,176.20 million, which It represents an interannual increase of 14.12%, where the effect of the increase in paternity leave from 8 to 12 weeks can be seen.

Temporary disability (IT) spending has increased 15.06% to 4,104.72 million, with IT spending being recorded for processes derived from COVID-19 (which has greater coverage, also including isolation and not just the disease) of 36.59 million, 0.89% of total spending.

The extraordinary benefit for self-employed workers affected by a declaration of a state of alarm in the face of the health crisis caused by COVID-19, which has reached an amount of 2,398.1 million euros, deserves special attention.

Pensions and non-contributory benefits, including the minimum supplements for contributory pensions, reached 4,264.78 million euros, 1.34% more than in the same period of the previous year. Of this amount, it is destined to non-contributory pensions and supplements for minimum 3,408.93 million and to subsidies and other benefits 855.85 million, of which 826.14 million correspond to family benefits, 15.46% more.

The increase in family benefits is motivated by the improvement in the amount of the same, established by Royal Decree Law 8/2019, of March 12, which has gone from a benefit for dependent children in the amount of 291 to 341 euros , or 588 euros in cases where household income is below the scale required by those families that are in the most severe poverty.

Personnel expenses have experienced an increase of 6.25%, which is mainly motivated by a change in criteria in the allocation of employer fees accrued in December of the year. Thus, until 2018 these quotas were applied to the closed year, but from 2019 they have been imputed, like the rest of the year, in the month following that of their accrual and, therefore, to the 2020 budget, which is when the recognition and settlement of these fees occurs.

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