2012 social security benefits up by €54.6 million

Last year, total expenditure on social security benefits amounted to €782.6 million, reflecting an increase of €54.6 million, or 7.5%, when compared to 2011.

According to the National Statistics Office, this was attributable to a €43.8 million rise in expenditure on contributory benefits. Non-contributory benefits' expenditure also increased by €10.8 million. The 2012 outlay on social security benefits accounted for 11.6% of the GDP at current market prices, 0.5 percentage points more than 2011.

Expenditure on contributory benefits' totalled €604.9 million in 2012, a 7.8% rise over the previous year. Pensions in respect of retirement contributed mostly due to a €30.4 million rise in the spend on two-thirds pensions.

Higher expenditure was also recorded on pensions in respect of widowhood (+€10.5 million), other benefits (+€1.1 million) and pensions in respect of industrial injuries and gratuities (+€0.1 million). On the other hand, pensions in respect of invalidity declined by €1.7 million.

Non-contributory benefits amounted to €177.6 million, a 6.5% increase from 2011.

This rise was mostly attributed to higher expenditure on Social Assistance (+€4.4 million), children's allowance (+€3.0 million) and medical assistance (+€1.9 million). Outlays in disability pensions (+€0.7 million) and old age pension (+€0.5 million) both advanced, while supplementary assistance decreased by €0.1 million.

In the fourth quarter last year expenditure on social security benefits totalled €221.4 million, recording an increase of €18.6 million, or 9.2%, over the corresponding quarter in 2011.

Contributory benefits increased by €16.3 million, mostly due to significant increases in pensions in respect of widowhood (+€8.2 million) and retirement (+€7.4 million). Non-contributory benefits' expenditure also rose by €2.3 million, with social assistance (+€1.6 million) and medical assistance (+€1.4 million) registering the largest additions in outlay.