Expenditure on social security benefits rose by 13.1 percent during the first six months of 2008, driven mainly by outlays on pensions in respect of retirement, contributory bonuses and children's allowances, the National Statistics Office said.

Total expenditure on social security benefits during the first six months this year amounted to €332.1 million, an increase of €38.5 million compared to the same period last year.

"This increase reflected higher outlays of €27.1 million and €11.4 million on contributory and non-contributory benefits respectively. The increase in contributory benefits was essentially the result of an €18.8 million growth in pensions in respect of retirement, which amounted to €154.6 million during the first six months of 2008. This increase was primarily underpinned by additional outlays amounting to €12.3 million on the two-thirds pension, in part reflecting a rise in the number of beneficiaries"

Invalidity pensions increased during the period under review , as did benefits relating to industrial injuries.

Pensions in respect of widowhood increased by €1.9 million whilst the Contributory Bonus increased by €3.7 million. Non-contributory benefits increased by €11.4 million over the same period last year. Within this category there was an €8.5 million rise in Children's Allowances resulting from a one-time payment to new beneficiaries. This expenditure was made during the first quarter of the year.

Other increases were recorded under Social Assistance, up by €0.9 million and under the Non-Contributory Bonus, which increased by €1.0 million, expenditure on social security benefits during the second quarter of the year amounted to €158.2 million.

"This outlay represents an increase of €10.5 million, or 7.1 per cent, when compared to the June quarter of 2007, and was brought about by an increase of €11.2 million in pensions in respect of retirement. During the second quarter this year pensions in respect of widowhood declined by €5.4 million, mainly because during the same quarter of 2007, four payments were made compared to three this year."