October 25, 2020

Expenditure on ERTE benefits reached almost 8.1 billion euros until June

The Ministry of Labor published this Monday the data on unemployment benefits paid in June, which updates the data on workers in ERTE and the disbursement of public money in this formula for temporary employment regulation that has functioned as the main tool to endure these months of crisis due to the coronavirus pandemic. Work reports that the cost of ERTE benefits amounts to 8,091.7 million euros in the months of April, May and June. To this public expenditure it must be remembered that the cost of exoneration of social contributions to companies in ERTE should be added, which translates into money not entered by the Social Security coffers.

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The Labor data reflects the decrease in the number of workers who received unemployment benefits from ERTE in June, compared to the May maximum of almost 3.4 million people (3,387,280). In June, that figure decreased by more than half a million workers (546,545 people), to 2,840,735 people affected by ERTE who received unemployment benefits. In total, 5,129,620 workers received a SEPE benefit in June, 14.3% less than the 5,986,864 workers in May, taking into account people in ERTE and those unemployed.

Total expenditure on benefits from the Public State Employment Service (SEPE) amounted to 4,115.2 million euros in June, 3,300.6 million euros in net wages for workers and 814.6 million euros in social contributions and deductions in concept of Personal Income Tax (Personal Income Tax).

Thus, spending has been reduced by 1,392.5 million euros, 25% less than the maximum set in May (5,507.7 million euros), as reported by the Ministry of Labor and Social Economy.

The Minister of Inclusion, Social Security and Migration, José Luis Escrivá, has reported on Twitter how the de-escalation of the ERTE is progressing until the first week of July. “Since the highs in May, 60% have already returned to work,” he pointed out and warned that “the activation of workers under ERTE has a different sector pattern,” with some having already removed 75% of the employees who were affected by this tool, such as specialized construction, sanitary activities, sale and repair of vehicles, and other sectors that have not yet reached “20%” of de-integration of their ERTE, such as accommodation services, air transport and travel agencies .

The differences in the de-escalation of the ERTE are also seen depending on the Autonomous Communities, with the delay of those most marked by tourism, such as the Balearic and Canary Islands.


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