Fedea warns of rising Social Security costs from disability benefits

The Foundation for Applied Economics Studies (Fedea) reports that spending on temporary disability benefits reached 18,413.3 million euros in 2025, accounting for 10.4% of total social security contribution income. This marks the highest percentage in history. Between 2020 and 2025, the cost of these benefits increased by approximately 6,000 to 6,500 million euros.

According to the study led by Octavio Granado, there is a correlation between unemployment rates and disability claims: spending tends to increase when unemployment falls. The report suggests that during periods of low unemployment, workers may use disability benefits more discretionally to manage stress, family care, or workplace pressure.

Fedea warns that this rising expenditure threatens the financial stability of the Social Security system, potentially offsetting revenue increases from recent pension reforms. To address this, the foundation proposes reforms such as unifying benefit percentages to eliminate disparities between common illness, professional illness, and mutual insurance.