Revenue from Social Security contributions to grow by 10.3% in 2023 to 154,633 million euros

Mar 31, 2024 | Current affairs, Featured, Revista Lloseta, Thursday Daily Bulletin, Tradition

This is 24.4% higher than the level before the pandemic and marks the highest rate of increase in the entire series. The system registers a negative balance of 8,627 million euros.

Revenues from social security contributions to Social Security registered an increase of 10.3% year-on-year in the accumulated data for the whole of 2023, reaching 154,633 million euros (14,385 million more than a year earlier), thanks to the improvement in employment. This is the highest rate of increase in the series (since 2004).

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Revenue from Social Security contributions to grow by 10.3% in 2023

Discounting the revenue corresponding to the Intergenerational Equity Mechanism, in force since 1 January 2023, the increase in social security contributions would be 8.3% year-on-year (11,662 million more).

If we take as a reference the data for the last financial year that was not affected by the pandemic, 2019, the increase in contributions is 30,378 million euros (24.4% more).

As a whole, the Social Security accounts show a negative balance of 8,627 million euros on 31 December 2023. These 8,627 million euros, equivalent to 0.59% of GDP, are the result of the difference between recognised rights for non-financial operations of 201,317 million euros, which show an increase of 9.2%, and recognised obligations of 209,944 million euros, which grew by 9.7% year-on-year.

The data for the Social Security Funds, which include, in addition to the system, the data from the Spanish Public Employment Service (SEPE) and the Wage Guarantee Fund (FOGASA), in terms of national accounts, up to December show a negative balance of 8,211 million euros, equivalent to 0.56% of GDP.

Non-financial revenue
In these twelve months, social security contributions amounted to 154,633 million euros, which represents an increase of 10.3% concerning revenue for the same period in 2022 (14,385 million euros more).

Evolution of Social Security contributions

This performance was driven by the evolution of employee contributions, which rose 10.5% year-on-year to 145,619 million euros (13,790 million euros more), due to the increase in Social Security enrolment.

Contributions by employed persons

In addition, contributions for the unemployed amounted to 9,014 million euros, an increase of 7.1% (595 million euros more).

Social Security contributions (%/GDP)

Transfers received by Social Security amounted to 43,908 million euros, a year-on-year increase of 2.8%. The most significant item corresponds to transfers received from the State and autonomous bodies, totalling 39,926 million euros (up 7.6%). In particular, the increase is mainly due to a greater receipt of funds to guarantee compliance with the First Recommendation of the Toledo Pact (1,492 million euros more).

Non-financial expenditure
On the expenditure side, economic benefits to families and institutions reached 195,641 million, 10.1% more than in the same period of 2022. This figure represents 93.2% of the total expenditure made in the Social Security system.

The largest item, 180,053 million, corresponds to pensions and contributory benefits, with an increase of 10%.

In a detailed analysis of the contributory area, spending on pensions (permanent disability, retirement, widowhood, orphanhood, in favour of family members and supplements to contributory pensions to reduce the gender gap) increased by 10.9% to 161,077 million euros, due to the increase in the number of pensioners (1.2%), the rise in the average pension (9.5%), as well as the general revaluation of 8.5% of contributory pensions in the financial year 2023.

About temporary incapacity benefits, total expenditure increased by 3.9% over the same period last year to 14,122 million euros, while benefits for childbirth and childcare, co-responsibility in infant care, risk during pregnancy and breastfeeding and care of minors affected by cancer or other illnesses amounted to 4,044 million euros (up 6.5%).

Non-contributory pensions and benefits, including minimum supplements to contributory pensions, amounted to 15,587 million euros, 11% more than in the same period of the previous year, mainly because of the extraordinary increase of 15% in non-contributory retirement and disability pensions and Minimum Vital Income, which has been applied since July 2022, has been maintained.

Of this amount, 10,313 million euros (6.4% more) are allocated to non-contributory pensions and minimum supplements, and 5,274 million euros (21.1% more) to subsidies and other benefits, of which 4,950 million euros correspond to Minimum Vital Income and family benefits, 21.2% more than the previous year.