Data from November 2024.
Planned article update: November 2025.
Highlights
Total expenditure on social protection benefits in the EU was estimated at €4 583 billion in 2023, equivalent to 26.8% of GDP.
In 2023, total expenditure on social protection benefits across the EU was 6.1% higher than in 2022.
Annual change in expenditure on social protection benefits, 2023
The preliminary data on European Union (EU) expenditure in 2023 show that EU countries spent €4 583 billion on social protection benefits, or 26.8% of gross domestic product (GDP). This was an increase of 6.1% compared with 2022.
There are considerable variations between EU countries when it comes to levels of social protection expenditure relative to GDP. In 2023, this share ranged from 31.3% in France and 31.2% in Finland to 12.0% in Ireland. The largest increases in social protection expenditure were observed in Slovakia (up 18.9% compared with 2022) and Poland (up 18.4%), while Denmark recorded the smallest increase (up 2.3%).
Within the EU, the highest expenditure on social protection benefits was recorded for the old age and survivors’ function (mostly pensions), nearly half (46.7%) of all expenditure on social protection benefits in 2023, followed by the sickness/health care function, which accounted for 29.9%.
This article presents statistics relating to expenditure on social protection benefits in the EU as well as in EFTA and enlargement countries. These statistics are collected through the European system of integrated social protection statistics (ESSPROS). The data for 2023 are early estimates published by Eurostat (on 7 November 2024); these preliminary data were provided by the reporting countries based on the ESS agreement on early estimates for social protection expenditure main indicators and are subject to revision.
Latest annual change in expenditure on social protection benefits
In 2023, the total expenditure on social protection benefits in the EU amounted to €4 583 billion, which was equivalent to 26.8% of GDP. Compared with 2022, this represented an increase of 6.1% (in current price terms).
Among the countries for which data are published (see Figure 1), the annual change in expenditure on social protection benefits has been calculated in national currencies (thereby avoiding the influence of exchange rate fluctuations with respect to the euro). Note that for the EU aggregate and for euro area countries, variations are based on data in euro terms.
- Across the EU countries, the fastest increases in expenditure in 2023 (compared with 2022) were observed in Slovakia (up 18.9%) and Poland (up 18.4%).
- Expenditure on social protection benefits rose at a relatively slow pace in 2023 in Denmark (up 2.3%), Italy (up 3.5%), Estonia (up 3.8%), Latvia (up 4.0%) and France (up 4.1%).
_SPS2024.png)
(%)
Source: Eurostat (spr_exp_func)
Expenditure on social protection benefits relative to GDP
The ratio of expenditure on social protection benefits relative to GDP is influenced not only by the level of expenditure but also by developments in GDP. Between 2022 and 2023, this ratio was almost unchanged in the EU, falling from 26.9% in 2022 to 26.8%, down 0.1 percentage points. This falling ratio resulted from GDP rising at a faster pace (up 6.5% in nominal terms) than expenditure on social protection benefits (up 6.1%).
In 2023, there were considerable variations between EU countries with respect to their levels of expenditure on social protection benefits relative to GDP. The highest ratios were 31.3% in France and 31.2% in Finland. These were followed by Austria, Germany, Belgium, Italy, Denmark and Sweden (with ratios in the range of 27% to 30%). At the other end of the range, the lowest ratios were observed in Ireland (12.0%) and Malta (13.2%).
Across the 26 EU countries for which data are published (no estimates available for Greece), the ratio of expenditure on social protection benefits relative to GDP
- increased in 15 EU countries, most strongly in Finland (up 1.6 points), Poland (up 1.4 points) and Luxembourg (up 1.3 points)
- fell in the remaining 11 EU countries, most strongly in Slovenia (down 1.2 points), Portugal (down 1.0 points), Malta (down 0.9 points), Italy (down 0.8 points) and France (down 0.7 points).
_SPS2024.png)
(% of GDP)
Source: Eurostat (spr_exp_func)
Expenditure on social protection benefits analysed by function
An analysis by function reveals that, within the EU, the highest expenditure on social protection benefits was recorded for the old age and survivors’ function (largely composed of pensions), which accounted for close to half (46.7%) of all expenditure on social protection benefits in 2023. The next highest share was for the sickness/health care function, which accounted for 29.9% of the EU’s expenditure on social protection benefits, while each of the remaining 4 functions (shown in Table 1) accounted for single-digit shares. Among these, the highest proportion was recorded for the family/children function (8.6% of total expenditure on social protection benefits), followed by the disability function (7.1%), the unemployment function (3.9%) and the housing and social exclusion function (3.8%).
Source: Eurostat (spr_exp_func)
As noted above, benefits for old age and survivors accounted for the highest share of EU expenditure on social protection benefits in 2023, at 46.7%. This pattern of the old age and survivors’ function recording the highest share of total expenditure was repeated in nearly all of the EU countries. The only exception was Ireland, where the sickness/health care function was the largest.
- There were 9 countries where more than half of their total expenditure on social protection benefits was directed to the old age and survivors’ function, with a peak of 59.2% in Italy, followed by Portugal (54.8%), Romania (53.2%) and Poland (52.7%). In some cases, relatively high shares of expenditure on benefits for old age and survivors may be linked to population ageing (and its related costs).
- Apart from in Ireland, the 2nd highest level of expenditure on social protection benefits across the countries was for sickness/health care. Its share ranged from highs of 45.0% in Ireland and 37.8% in Cyprus down to lows of 23.1% in Finland, 22.2% in Denmark and 22.1% in Italy.
- The share of social protection benefits for family/children ranged from highs of 14.7% in Luxembourg and 13.5% in Poland down to a low of 4.4% in Cyprus. In a majority (17) of the countries, the family/children function accounted for the 3rd highest level of benefits; in Italy the family/children function accounted for the joint 3rd highest level of benefits (with the disability function).
- The highest shares of benefits for the disability function were recorded in Denmark (18.2%) and Luxembourg (10.9%). There were much smaller shares recorded in Cyprus (3.0%), Malta (4.0%) and Poland (4.4%). The disability function accounted for the 3rd highest level of benefits in 6 countries; it was also the joint 3rd highest in Italy (with the family/children function) and in Spain (with the unemployment function).
- The share of expenditure for unemployment benefits generally ranged from 1.7% in Czechia and Hungary up to 5.2% in Lithuania. Malta (0.9%), Poland (0.8%) and Romania (0.2%) were below this range, while France (5.6%) and Spain (6.2%) were above it. Spain was the only country where expenditure on the unemployment function accounted for the 3rd highest level of social protection benefits, jointly with the disability function.
- Expenditure on housing and social exclusion as a share of total social protection benefits was highest in the Netherlands (7.4%), followed by Ireland and Finland (both 6.5%). By contrast, it was lowest in Romania (0.9%), Estonia (1.0%) and Bulgaria (1.3%). The housing and social exclusion function accounted for the 3rd highest level of benefits in Cyprus (6.0%).
Source data for tables and graphs
Data sources
The statistics presented in this article were collected from national statistical authorities and/or ministries of social affairs. For more information about the data sources, please refer to the methodological notes available on CIRCABC.
In February 2024, an ESS agreement on early estimates for social protection expenditure main indicators was endorsed by the European Statistical System Committee (ESSC) with the purpose to improve the timeliness of a subset of social protection indicators.
Context
The main policy framework in the field of EU social protection is the European pillar of social rights.
Explore further
Other articles
Database
- Social protection expenditure (spr_exp)
- For the early estimates, see
Thematic section
Publications
Methodology
- Social protection methodology
- Social protection (ESMS metadata file – spr_esms)
External links
Legislation
- Regulation (EC) No 458/2007 of the European Parliament and of the Council of 25 April 2007 on the European system of integrated social protection statistics (ESSPROS).