Expenditure on social security benefits rose by 6.7 percent during the first six months of 2009, driven mainly by outlays on retirement pensions, the NSO said today. Spending on unemployment benefits was also up sharply.

Total expenditure on social security benefits between January and June amounted to €354.3 million, up by €22.2 million over the corresponding period last year. (Spending was €293.6 million in the first half of 2007).

The NSO said this year's increase reflected mainly higher expenditure on contributory benefits amounting to €21.1 million. Spending on non-contributory benefits increased by €1.1 million.

The increase in contributory benefits was essentially the result of a €14.8 million growth in retirement pensions, which amounted to €169.4 million for the first six months of 2009. This increase was primarily underpinned by outlays on the two-thirds pension, in part reflecting a rise in the number of beneficiaries. Pensions in respect of invalidity decreased during the period under review by €1.8 million, and so did benefits relating to occupational accidents.

Widows' pensions increased by €2.1 million whilst the Contributory Bonus increased by €5.6 million.

Spending on unemployment benefits reached €1.28 million from €857,000 in the same period last year.