Spending on unemployment benefits increases when unemployment falls: it already absorbs 10.4% of contributions
Experts note that the disbursement associated with temporary disability processes increases in a context of reduced unemployment. Between 2020 and 2025 it increased by 6.5 billion.
According to a study by Fedea, the expenditure on temporary incapacity benefits in Spain has increased exponentially, reaching 18.413 billion euros in 2025, which accounts for 10.4% of the total social security contributions. This represents a 0.5-point increase from 2020 and a 4-point increase over the past three decades. The study notes that there is a correlation between lower unemployment rates and higher expenditure on temporary incapacity benefits.
Fedea proposes six measures to curb the rising expenditure, including suppressing calculation disparities between contingencies, promoting gradual return to work, and controlling and rehabilitating mental health.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
