behavior labor market Did not meet bad forecasts in Spain What economists or business organizations are waiting for, first regarding the impact of the new legislation, then the invasion of Ukraine. For example, at the end of July, Galicia added close to 1.06 million Social Security members, a volume unknown since November 2008, on the eve of the double-dip recession and after the decline in giants like Lehman Brothers or the Federal National Mortgage Association. Fannie Mae). A progress shared by all business segments and looking towards an autumn that will leave many EU countries, the Galician company’s main customers, in a state of technical recession. Waiting for the slope of the back to school to bring, increase in the number of members, Significant increase in Social Security income for social contributions. Not taking into account the contribution of joint collaborators – around 160m euros up to May, the latest available data – the joint fund raised more than 2,015m euros in the first half of the year. Not only is this an improvement over the same period last year (+5%), it also far surpasses pre-Covid records. Yes definitely, clearly insufficient To offset the increase in retirement spending.
If this contribution from co-insurance companies is added to the Social Security contribution collection by May, revenue would be just under 2.173 million. a historically high amountOn the other hand, benefits (pension, widowhood, orphanhood, disability and family benefits) increased significantly, as confirmed by the official figures of the portfolio headed by José Luis Escrivá. Especially five times what your income is. Between January and May, the full salary of these benefits was close to €5,000 million, twenty percentage points higher than the cost calculated in the same period last year. Taking into account the payment of additional benefits and the development of pensions, Social Security at the end of 2022 10 billion € in this collective. A hitherto unknown amount—another figure in a portion of spending that continues to rise each year.
There are already structural factors that explain these figures, both in terms of the improvement in the collection of contributions (which was only reduced in the implementation of covid) and the continued progress of the pension payroll. Namely: improvement in employment quality, net job creation and extension of life expectancy. But there is another aspect of particular importance at the moment: inflation. In the midst of the debt crisis, with the pension system reform promoted by the manager of Mariano Rajoy, Two measures to contain the cost of the benefit system: revaluation index and sustainability factor. First, it found that while Social Security was in a deficit that it hasn’t left since 2011, payments would increase by an upper limit of 0.25%. The latter monopolized the same amount: it would be charged less – effectively not enacted – but for a longer period of time due to longer life expectancy.
Pedro Sánchez’s Government at the beginning of the year 2.5% increase in contributions, and another three points with no contribution margin. This fact largely explains why the cost of the system in Galicia has increased by 950 million euros in the first half of the year in just one year. And the same happened with income from work. In addition to increasing quality employment, wages agreed upon by agreement included wage increases of 3.8% By July, community and salary review items had significantly improved this group’s income.