Early estimates by Eurostat, the statistical service of the EU, show that total expenditure on social protection benefits in the EU reached 4.307 trillion in 2022, a 3% increase compared with 2021, while in Cyprus there was an 18% increase during the same period. Meanwhile in Cyprus expenditure on social protection benefits also increased as a percentage of the country’s GDP.

Social protection benefits expenditure increased in almost all EU countries for which 2022 estimates are published (member states report data on a voluntary basis). The exceptions were Malta, where it decreased by 5% and Ireland, where there was no percentage change compared with 2021.

The largest increases between 2021 and 2022 (measured in national currencies) were recorded in Bulgaria (+28% compared with 2021), Cyprus (+18%) and Hungary (+10%), while the smallest increases were registered in Austria (+1%), and France, Denmark, Slovakia, Finland and Germany (all with +2%).

While social protection expenditure in national currencies rose in most EU countries, when analysing expenditure as a percentage of the GDP, data shows a decrease in 2022. This is because GDP increased more than the expenditure on social benefits in a rebound effect from the negative effects of the COVID-19 pandemic.

Overall, social protection benefits expenditure represented 27.2% of the EU’s GDP, a 1.5 percentage point (pp) drop compared with 2021.

Between 2021 and 2022, social protection benefits expenditure as a percentage of GDP decreased in all EU countries (with available early estimates), except in Cyprus, Bulgaria and Luxembourg.

In these cases, there was an increase in social protection benefits expenditure as a percentage of GDP: +1.4 pp for Cyprus to 23.2% of GDP, +1.2 pp for Bulgaria to 19.5% of GDP and +0.1 pp for Luxembourg to 21.6% of GDP.

The largest decreases were observed in Malta (-2.8 pp), Austria (-2.6 pp) and Denmark (-2.2 pp).

Among EU countries for which 2022 estimates are published, social protection benefits expenditure as a percentage of GDP was highest in France (32% of GDP), Austria and Italy (both 30%), while it was lowest in Ireland (11%), Malta (15%), as well as Estonia, Lithuania and Hungary (all 16%).  

Old age and sickness/health care benefits accounted for the main part of social protection benefits in all EU countries for which data are published. Other categories included disability, survivors, family/children, unemployment, housing and social exclusion not classified elsewhere.