Social security bill up 10.5%

Expenditure on social security benefits rose by 10.5 per cent last year, driven mainly by outlays on retirement pensions, contributory bonus and social assistance.

The National Statistics Office said total expenditure on social security benefits last year amounted to €731.4 million, up by €69.5 million over the comparative period in 2009.

This reflected mainly a higher expenditure of €60.5 million on contributory benefits. Non-contributory benefits rose by €9 million.

The outlay on social security benefits made up 11.7 per cent of the GDP at current market prices, 0.4 percentage points over 2009.

On a cash basis there were 14 payments in calendar year 2010 compared to 13 in the previous years.

The increase in contributory benefits was essentially the result of a €50.4 million growth in retirement pensions, which amounted to €369.9 million. This was underpinned by the outlay on the two-thirds pension, in part reflecting a rise in the number of beneficiaries.

Invalidity pensions in respect of declined by €2 million, while benefits relating to industrial injuries declined by 9.1 per cent.

Widowhood pensions increased by €4.8 million while other benefits went down by €0.5 million.

Non-contributory benefits advanced by €9 million over the outlay in 2009.

Most of the increase in this category was attributed to a €6.6 million rise in outlays on social assistance.

Old age pension, disability pensions/allowance, and medical assistance added by €1.2 million, €0.6 million, and €0.9 million respectively.

During the period under review children's allowance and supplementary assistance declined by €0.8 million and €0.2 million, respectively.

Expenditure on social security benefits during the fourth quarter last year amounted to €197.6 million, an increase of €37.8 million compared to the December quarter of 2009.

This was brought about by increases of €32.4 million in contributory benefits and of €5.4 million in non-contributory benefits.