Social protection in EU – 29.0 % of GDP

In 2011, in EU Member States EUR 3 689 thousand million gross, or 29.0 % of their GDP, were spent on social protection benefits[1]. The income provided by some benefits paid in cash is, however, potentially subject to levies imposed through the fiscal system. The deduction of levies, such as income taxes or social contributions, from the gross amounts received by beneficiaries means that some of the original expenditure is returned to the government coffers and that net expenditure on social protection benefits may therefore be considerably lower than the gross amount disbursed. Indeed, in 2011 around 7.6 % of gross expenditure on social protection benefits in the EU was recouped through the fiscal system making the net cost 92.4 % of gross expenditure.

Net expenditure on social protection benefits, 2011 (% of gross expenditure)

Chosen excerpts by Job Market Monitor. Read the whole story at  Social protection statistics – net expenditure on benefits – Statistics Explained.