Government spending on pensions and social benefits continued to climb in 2025, reaching an all-time high.

Contributory and non-contributory beneficiaries collectively received around €1.62 billion, accounting for 21% of the Government’s total recurrent expenditure for the year and double the amount paid out in benefits in 2013.

Figures published on April 9 by the National Statistics Office (NSO) show that investment in contributory benefits rose by €106.3 million compared to the previous year, surpassing €1.25 billion. Meanwhile, spending on non-contributory benefits increased by more than €36 million, reaching €362.5 million.

The number of contributory pensioners has now exceeded 100,000. Including those receiving non-contributory old-age pensions, the total number of pension recipients rose to approximately 106,800 last year. Their combined income from pensions and bonus payments increased by €103 million to €1.25 billion, largely driven by a €416 annual increase across all pensions, alongside further improvements to pension schemes.

Widow pensioners also benefited from additional increases through adjustments that will ensure they receive the same pension rate their spouses would have been entitled to as of next year.

Further gains were registered among pensioners born before 1962, as ongoing adjustments aim to reduce disparities in maximum pensionable income between different age cohorts. Additional increases were also granted through cost-of-living bonuses, with reforms set to standardise payments for all pensioners regardless of retirement date, addressing a longstanding anomaly dating back to 2008.

Around 13,800 individuals, mostly women who are not eligible for a pension due to insufficient contributions, also received higher annual bonuses. In total, they were paid €10.5 million, an increase of €3 million over the previous year.

Higher Income Support for Families with Children

NSO data also show that investment in families with children rose by approximately €18 million in 2025, reaching nearly €113 million. This accounted for roughly one-third of total spending on non-contributory benefits.

The increase was mainly driven by higher children’s allowances, improved support for children with disabilities, and enhancements to the in-work benefit for working parents.

The second-largest rise in non-contributory benefits was recorded in the additional COLA supplement, which increased by €9.2 million to nearly €52 million. This benefit supported 107,770 low- and middle-income individuals and families in mitigating the impact of inflation.