Social Security contributions exceeded those obtained a year earlier by 2,893 million euros. The increase in Social Security contribution income compared to the pre-pandemic level is 31.7%.

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Revenue from Social Security contributions rises 7.7% year-on-year

Income from Social Security contributions recorded an increase of 7.7% year-on-year in the first quarter of the year, reaching 40,262 million euros (2,893 million more than a year earlier).

Revenues corresponding to the Intergenerational Equity Mechanism, in force since 1 January 2023, recorded an increase of 73.1%, reaching 832 million euros.

If we take as a reference the data for the last year that was not affected by the pandemic, 2019, the increase in contributions is 9,696 million euros (48.3% more).

As a whole, the Social Security accounts show a positive balance, on 31 March 2024, of 550 million euros compared with a negative balance of 196 million euros on the same date in 2022. These 550 million euros, equivalent to 0.04% of GDP, are the result of the difference between recognised rights for non-financial operations of 48,326 million euros, which show an increase of 10.5%, and recognised obligations of 47,776 million, which grew by 8.8% year-on-year.

The data up to February (the latest available data) show a positive balance of 56 million euros for the 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 cash terms, the system’s net revenue reached 47,335 million euros, an increase of 10.5% over the previous year, while payments rose by 9.2% to 47,677 million euros.

Non-financial income
In the first three months of the year, social security contributions amounted to 40,262 million euros, an increase of 7.7% compared to the same period in 2023 (2,893 million euros more).

This performance was driven by contributions from employed persons, which rose 8.1% year-on-year to 37,848 million euros (2,821 million euros more).

In addition, contributions for the unemployed amounted to 2,414 million euros, an increase of 3.1% (72 million euros more).

Transfers received by Social Security amounted to 7,637 million euros, a year-on-year increase of 27.2%. The most significant item corresponds to transfers received from the State and Autonomous Organisations, totalling 6,477 million (up 30.8%).

Non-financial expenditure
On the expenditure side, economic benefits to families and institutions reached 45,019 million, 8.6% more than in the same period of 2023. This figure represents 94.2% of total expenditure in the Social Security system.

The largest item, 41,132 million, corresponds to pensions and contributory benefits, with an increase of 8.2%.

In a detailed analysis of the contributory area, spending on pensions (permanent disability, retirement, widowhood, orphanhood, family allowances and supplements to contributory pensions to reduce the gender gap) increased by 7.6% to 36,295 million euros, due to the increase in the number of pensioners (1.2%), the rise in the average pension (5%), as well as the general revaluation of 3.8% of contributory pensions in the financial year 2024.

About temporary incapacity benefits, total expenditure increased by 15.7% compared to the same period last year, reaching 3,587 million euros, while benefits for childbirth and childcare, co-responsibility in infant care, risk during pregnancy and breastfeeding, and care for minors affected by cancer or other illnesses amounted to 1,050 million (5.7% more).

Pensions and non-contributory benefits, including minimum supplements to contributory pensions, amounted to 3,887 million euros, 13.2% more than in the same period of the previous year. This increase is mainly due to the general revaluation of 6.9% established for the year 2024.

Of this amount, 2,371 million euros (7.6% more) are allocated to non-contributory pensions and minimum supplements, and 1,515 million euros (23.2% more) to subsidies and other benefits, of which 1,381 million euros correspond to Minimum Vital Income and family benefits, 18.7% more than the previous year.