According to the activity report of the Institute for the Financial Management of Social Security (IGFSS), published on August 5, forced collection of social security debt fell to EUR 434.2 million in 2021, the lowest value in the past 10 years. However, the number of herds reached the highest level since 2011: 641,948.
For the reduction of debt collection, “the contraction of the economy, the difficulties experienced by economic agents as a result of the pandemic experienced”, made a fundamental contribution, “which had a direct and immediate impact on the achievement of the collection target , insofar as it directly affected the income of the economic operators concerned, whether they were individuals or employers,” explains the institute. “As a result, compared to previous years, there was a reversal of the trend in the global indices of recovery of values, with the result obtained being recorded for an amount of 434.2 million euros, a decrease of 7.7% compared to the previous year”, adds the same report.
The collection reduction in 2021 corresponds to “a trend reversal in global indices of recovery of values” compared to previous years, the IGFSS points out. Nevertheless, the net debt to social security amounted to 2,109.32 million euros last year, a decrease of 17% compared to 2020.
Businesses are the largest social security debtors as measured by the amount charged, accounting for 82% of the total, followed by the self-employed (13%) and beneficiaries of social benefits (4.6%).
In terms of payment types, the report shows that forward contracts remain more relevant (58.5%) in total debt reclaimed, followed by voluntary payments (24%) and, finally, mandatory payments. (17.2%).
Installments and voluntary payments decreased compared to the previous year, but forced collection increased by 6% in relative terms and by 29% in absolute terms.
Despite debt collected falling to the lowest level of 10 years ago, garnishments have risen to a new maximum since 2011. Last year, “641,948 seizures were ordered (from bank accounts, IRS, VAT, credits, among others),” reveals the IGFSS.
Dinheiro Vivo journalist
Source: El heraldo
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