Social Security closed the first seven months of the year with a surplus of €4,416 million, ECO News reports.

This marks the highest figure for this period of the year within the last decade, and the balance recorded up to July translates into an increase of €1,201 million compared to the same period in 2025.

The result, which was revealed in the most recent budget execution report from the Budgetary Support Technical Unit (UTAO), represents a growth of 37.4% compared to the same period in 2025.

Contributions support surplus

The Social Security surplus was particularly “supported by the growth in contributions (7.3%) and the containment of expenditure on pensions and benefits (4.4% vs. 9.0% projected),” the report reveals.

According to INE data cited by UTAO, the employed population increased by 2.9% in the second quarter, and the average gross monthly remuneration per worker rose by 5.1% in nominal terms, ECO News reports.

Benefit spending remains below projections

In the analysis by category, “pension expenditure increased by 4.3%, below the benchmark of 6.1% foreseen in the 2026 Budget”, while “expenditure on social benefits (excluding pensions) grew by 5.8%, below the increase foreseen for the whole of 2026 (12.2%).”

Unemployment benefits rose by 2.2% through July, remaining below the estimated annual increase of 3.1%. The number of beneficiaries fell by 9,416 people, or 5.3%, reflecting the downward trend in unemployment recorded since the beginning of the year.

The most notable increases were in the Social Inclusion Benefit and the Sickness Benefit, respectively, at 16.4% and 9.5%.

After accounting for factors affecting comparisons between 2025 and 2026, the overall Social Security balance stands at €4.37 billion, below the €6.339 billion projected in the 2026 State Budget, according to UTAO.