Social security benefits up by 3.2%

Total social security benefits amounted to €668.5 million during the first three quarters of 2016, reflecting a 3.2% rise from the corresponding period in 2015. The increase in expenditure was due to a €31.1 million rise in contributory benefits outlay. On the other hand, non-contributory Benefits expenditure declined by €10.6 million.

Contributory benefits 2016 outlay totalled €527 million by the end of September, 6.3% higher than the same period in 2015. The rise in outlay was mainly due to a €26.4 million rise in pensions in respect of retirement. Further increases in expenditure were registered under Pensions in respect of widowhood (€4 million), contributory bonus (€2 million) and benefits in respect of industrial injuries and gratuities (€0.2 million). Conversely, declines were recorded under both pensions in respect of invalidity (€0.8 million) and other benefits (€0.6 million).

Non-contributory benefits expenditure decreased by 7% during the first nine months of 2016, amounting to €141.5 million. The main reason behind the decline was due to the one-time child supplementary benefit paid in September 2015, accounting for €7.7 million of the non-contributory outlay for the third quarter of that year. Further decreases were recorded under social assistance (€4.4 million), child allowance (€0.8 million) and non-contributory bonus (€0.4 million). The decline in outlay was slightly offset by increases being recorded under disability pension/allowance (€1.4 million), in-work benefit (€0.6 million), supplementary allowance (€0.4 million), old age pension (€0.3 million) and medical assistance (€0.1 million).

During the third quarter of 2016, social security benefits expenditure totalled €245.4 million, reflecting a 2.2% increase when compared to the corresponding quarter in 2015. The rise in outlay was due to a €13.4 million rise in contributory benefits expenditure, mainly due to a €11.6 million increase in pensions in respect of retirement. Non-contributory outlay declined by €8.2 million in the third quarter of 2016.

Social security beneficiaries

During the first nine months of 2016, the largest cohort of social security contributory beneficiaries was registered under the two-thirds pension (44,753). In comparison to the corresponding period in 2015, the largest increase in beneficiaries was also recorded under the two-thirds pension (2,053) while the biggest decline was registered under the unemployment benefit with 339 fewer recipients.

Non-contributory benefits mainly consisted of children’s allowance and supplementary allowance with 42,542 and 23,779 recipients respectively. Unemployment assistance taper recorded the largest rise in beneficiaries, with 999 more recipients than 2015, while unemployment assistance registered the largest decline with 1,179 less beneficiaries.