Expenditure on social security benefits rose by 5.9 per cent during 2009, driven mainly by outlays on Retirement Pensions and the Contributory Bonus.
Expenditure on Social Security Benefits:
Total expenditure on social security benefits during 2009 amounted to €661.8 million, up by €37.0 million over the previous year. This reflected mainly higher expenditure of €33.1 million on Contributory Benefits. Non-Contributory Benefits rose by €4.0 million. In 2009 the outlay on social security benefits made up 11.6 per cent of the GDP at current market prices, an increase of 0.6 percentage points over 2008.
The increase in Contributory Benefits was essentially the result of a €25.5 million growth in Pensions in respect of Retirement, which amounted to €319.5 million. This increase was underpinned by the outlay on the Two-thirds Pension, in part reflecting a rise in the number of beneficiaries. Pensions in respect of Invalidity declined by €3.3 million during the year under review, while benefits relating to Industrial Injuries declined by €0.2 million. Pensions in respect of Widowhood increased by €3.7 million while the Other Benefits went up by €1.2 million.
Non-Contributory Benefits increased by €4.0 million over the outlay in 2008. Most of the increase in this category was attributed to a €4.3 million rise in outlays on Social Assistance. Old Age Pension, Disability Pensions/Allowance, and Medical Assistance rose by €0.5 million, €0.1 million, and €0.4 million respectively. During the course of 2009 Children’s Allowance and Supplementary Assistance declined by €1.2 million and €0.4 million respectively.
Expenditure on social security benefits during the fourth quarter amounted to €159.8 million, an increase of €6.7 million compared to the December quarter of 2008. This increase was brought about by an increase of €6.2 million in Contributory Benefits and €0.5 million in Non-Contributory Benefits.
A glossary at the end of this release defines the major pensions, grants and other benefits.