In the first half of 2016, the outlay on social security benefits increased by €15.3 million when compared to 2015 outlay, the NSO said.
Total social security benefits amounted to €423.2 million during the first six months of 2016, 3.8 per cent higher than the corresponding period in 2015. The increase in expenditure was due to a €17.7 million rise in Contributory Benefits outlay. On the other hand, Non- Contributory Benefits expenditure declined by €2.4 million.
Contributory Benefits outlay totalled €330.0 million, 5.7 per cent higher than the first half of 2015. The rise in outlay was mainly due to a €14.7 million rise in Pensions in respect of Retirement. Further increases in expenditure were registered under Pensions in respect of Widowhood (€2.5 million), Contributory Bonus (€1.2 million) and Benefits in respect of Industrial Injuries and Gratuities (€0.1 million). Conversely, declines were recorded under both Pensions in respect of Invalidity (€0.5 million) and Other Benefits (€0.3 million).
Non-Contributory Benefits expenditure decreased by 2.5 per cent during the first six months of 2016, totalling €93.2 million. A €3.1 million decline in Social Assistance was the main reason behind such a decrease, followed by drops in outlay for Child Allowance (€0.9 million) and Non-Contributory Bonus (€0.2 million). On the other hand, a rise in outlay was recorded under Disability Pension/Allowance (€1.0 million), In-Work Benefit (€0.4 million), Old Age Pension and Supplementary Allowance (both €0.2 million).
During the second quarter of 2016, social security benefits expenditure totalled €216.6 million, reflecting a 2.7 per cent increase from the second quarter of 2015. The rise in outlay was due to a €7.3 million rise in Contributory benefits expenditure, mainly due to a €7.7 million increase in Pensions in respect of Retirement. Non-Contributory declined by €1.7 million in the second quarter of 2016, following a €1.8 million decline in Social Assistance outlay.
Social Security Beneficiaries
During the first half of 2016, the largest cohort of Social Security Contributory Beneficiaries was recorded under the Two-Thirds Pension (43,893). In comparison to the corresponding period in 2015, the largest increase in beneficiaries was also registered under the Two-Thirds Pension (2,063) while the biggest decline was registered under the Unemployment Benefit with 318 less recipients.
Non-Contributory Benefits mainly consisted of Children’s Allowance (41,589) and Supplementary Assistance (23,460) recipients. The largest rise in beneficiaries was recorded under Unemployment Assistance Taper (1,094) while Unemployment Assistance registered the largest decline with 1,161 less recipients.