Social security spending increased by €37 million last year over the previous one, bringing the tally for 2009 up to €661.8 million, according to the latest official figures.

The total spend represents 11.6 per cent of Malta's gross domestic product, a 0.6 per cent increase over 2008, according to the National Statistics Office.

The increase was mostly the result of a €33.1 million increase in contributory benefit spending, of which €25.5 million were increases in retirement pension payouts. Overall, in fact, at €319.5 million, retirement pensions accounted for almost half of the spending on social security.

The statistics confirm the trend of Malta's ageing population, accompanied by more money being spent on pensions.

One of the social benefits that saw a decline was children's allowance, which dropped by €1.2 million.

Invalidity pension spending, on the other hand, declined by €3.3 million while benefit spending related to industrial injuries declined by €200,000.