Expenditure on social security benefits increased by 6.6 per cent during the first nine months of 2006, due to higher outlays on pensions in respect of retirement, the National Statistics Office said yesterday.

Total expenditure on social security benefits amounted to Lm174.4 million during the first nine months of 2006, up by Lm10.8 million over the same period of last year.

This reflected an increase of Lm9.5 million on the contributory benefits category and an increase of Lm1.3 million on the non-contributory benefits category.

The increase in contributory benefits was driven mainly by a Lm7.4 million increase in pensions in respect of retirement, which amounted to Lm78.8 million during the first nine months of 2006.

This increase was primarily underpinned by outlays on the two-thirds pension, in good part reflecting a rise in the number of beneficiaries. Pensions in respect of widowhood have increased by Lm1.6 million during the survey period.

Pensions in respect of invalidity rose marginally, while benefits in respect of industrial injuries declined.

In the first nine months of 2006, the rise in expenditure on non-contributory benefits was underpinned by higher outlays on Old Age pensions, which increased by Lm0.4 million, and on Social Assistance which rose by Lm0.6 million.