Social Security Expenditure Continues to Rise

July 31, 2014

Total social security benefits amounted to €412.3 million during the first six months, a 1.7 per cent increase compared to the corresponding period of 2013. This was due to a €10.9 million increase in expenditure on Non-Contributory Benefits. On the other hand Contributory Benefits declined by €4.1 million. 

Contributory Benefits expenditure reached €303.5 million by the end of June, down by 1.3 per cent over 2013. This was due to an €11.0 million drop in the Contributory Bonus outlay, as a result of the change in the COLA payment procedure which, starting from this year is being paid every four weeks instead of as a lump sum at the beginning of the year. 

A decrease was also recorded under Other Benefits €0.3 million. The decrease in Contributory expenses was partially offset by rises in outlay for Pensions in respect of Retirement €4.6 million, Widowhood €2.4 million and Industrial Injuries €0.1 million.  

Non-Contributory Benefits increased by 11.1 per cent in the first six months. A rise in expenditure was recorded under Social Assistance €3.7 million.  

Old Age Pension €2.4 million

Supplementary Assistance €2.0 million

Disability Pension/Allowance €1.8 million

Children’s Allowance €1.4 million

Medical Assistance €0.3 million

Non-contributory Bonus decreased by €0.7 million. In the second quarter, the outlay on social security benefits went up by €11.2 million, to €206.0 million. An increase in expenditure was recorded under both the Contributory €6.3 million and Non-Contributory €5.0 million categories