Government Expenditure on Social Security Benefits

July 31, 2013

During the first half of 2013, expenditure on Social Security Benefits went up by €15.1 million, mostly due to increases in the outlay on Pensions in respect of Retirement. expenditure on Social Security Benefits amounted to €405.5 million in the first half of 2013, a 3.9 per cent increase over the corresponding period last year. As shown in Table 1, higher outlays on both Contributory Benefits (+€8.9 million) and Non-Contributory Benefits (+€6.2million) accounted for the rise in expenditure.

The growth in Contributory Benefits’ expenditure was essentially due to significant increases in outlays on Pensions in respect of Retirement (+€8.9 million) and on the Contributory Bonus (+€4.9 million). Further increases were also recorded under Other Benefits (+€0.6million) and Pensions in respect of Invalidity (+€0.2 million). This rise was partially offset by declines in expenditure for Pensions in respect of Widowhood (-€5.7 million) and Industrial Injuries (-€0.1 million).

Non-Contributory Benefits’ increased by 6.8 per cent when compared to the corresponding period last year. This was mostly due to significantly higher outlays in Children’s Allowance (+€3.9 million) and Social Assistance (+€2.1 million). Additional increases were also recorded under Old Age Pension (+€0.5 million), Non-Contributory Bonus (+€0.5 million) and Disability Pensions/Allowance (+€0.4 million). Medical Assistance decreased by €1.2 million.

The Social Security Benefits’ expenditure amounted to €194.7 million in the second quarter this year, a 6.1 per cent rise over last year. This was due to a rise of €5.8 million in Contributory Benefits and €5.4 million in Non-Contributory Benefits. The rise in Contributory Benefits was brought about by a €4.3 million increase in Pensions in respect of Retirement, while a €3.4 million rise in Children’s Allowance mainly led to the increase in Non-Contributory Benefits.