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COM (86) 304 
 
 
 
Vol. 1986/0 147 
  
 
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COMMISSION OF THE EUROPEAN COMMUNITIES
C0M (86) 304 final
Brussels, 30 M a y  1986
R E P O R T  F R O M  T H E  C O M M I S S I O N  T O  T H E  C O U N C I L
M E D I U M - T E R M  P R O J E C T IO N S  O F  
S O C IA L  P R O T E C T IO N  E X P E N D I T U R E  A N D  IT S  F I N A N C I N G
1987 P R O J E C T IO N S  - S U M M A R Y  R E P O R T
CO M Î86) 304 final

C O N T E N T S
1. Introduction
2. Receipts
3. Expenditure1. Share of the receipts in the national product
2. Nature of receipts
3. Social contributions in m ore detail
4. Sector of origin
1. Social protection expenditure and benefits
2. Social expenditure and gross domestic product
3. Functions of social protection benefits
4. Health
5. O ld age and survivors
6. Maternity/Fami ly
7. E m ploym ent
8. Fiscal benefits
9. Capital transactions
Appendices :  A - Detailed tables
B - Economic assumptions
C - "Social benefits" and "
D - Social protection funct
E - Retirement ages used inSocial protection benefits" 
ions - content 
caleu lat i  ons
N O T E
Contents of separate volum e containing national reports :
D ata for 1982 and 1987 :  receipts
expendi ture 
demographics

C H A P T E R  O N E
I N T R O D U C T IO N
O n  2 8  July 1978 the C om m ission sent the Council a report o n  1980 
projections of social expenditure and its financing, together with the national 
reports o n  which it w as based.
T he Council expressed its satisfaction with the w ork accomplished 
and acknowledged the value of the docum ent submitted. T h e Council w ent o n  to 
request the Commission, in cooperation with governmental experts, to evaluate 
the experience gained during the preparation of the report and to c o m e  back with 
proposals for a  further stage of the work.
T he Com m ission services submitted proposals for ^^four-year w ork 
programme, which were accepted b y  the Council in D ecem ber 1982
This program m e is designed to provide those responsible - at 
C om m unity and at national level - with regular information o n  m edium-term trends 
in social expenditure and its financing, particularly its major com ponent :  
social security, including the cost implications of C om m unity proposals in this 
field, especially those designed to improve the em ploym ent situation (such as 
flexible retirement).
T he program m e consists of :
1. Annual sum m ary reports
2. Priority policy analyses
to be draw n u p  by Com m ission services. T h e results of the analyses will be
examined notably in the fram ework of concertation in the social security field, 
set up by Council resolution in January 1974.
...This document consists of the annual sum m ary report o n  1987
projections^ compared to 1982. (The national reports o n  which this docum ent is
based m a y  b e obtained o n  request from  the Commission, subject to budgetary 
constraints). T he economic assumptions underlying the 1987 projections w ere 
developed in 1985 b y  the Commission's econometric m odel (C O M E T ). D em ographic and 
other assumptions were developed at national level. T he projections in this
report d o  not necessarily reflect official national views, which m a y  be based 
for example o n  other economic or social assumptions. Certain differences for 
1982 between the data in this report and those published b y  the Statistical 
Office of the European Communities are largely due to the inclusion of capital 
expenditure or fiscal benefits here. Finally it has not been possible to attempt 
explanations of all the changes noted in this report, for reasons of space.
(1) C O M (81) 6 6 1  final. .
(2) Based o n  legislation at 1st January 1985. T h e use of constant legislation 
implies that the 1987 data are projections rather than attempts at realistic 
forecasts.

C H A P T E R  2
R E C E IP T S
T he continuing high level of unem ploym ent in the C om m unity, the deteriorating 
age pattern of the population, a  trend w hich will continue in the future, and 
the special problems in the area of health care have led in the past to high 
rates of increase in social protection expenditure. This also has repercussions 
o n  social security receipts. If n o  attempt is m ad e  to com bat this development b y  
cutting back benefits then either a  larger proportion of general budget 
resources of a  country m ust be used for this purpose or social security 
contributions m ust be increased.
In this paper, as in the previous projections, a  distinction will be m a d e  o n  the 
one hand according to the nature of the financing (i.e. mainly government funds 
and contributions) and o n  the other according to the sector of origin (enter­
prises, government, private households). A t the sam e time it should be pointed 
out that w hat is presented here are overall figures for all the functions of 
social security. Distinctions are only m ad e  b y  country and not b y  individual 
function. T h e figures quoted therefore represent in each case only an  average 
for the country concerned, while within the individual branches of the social 
security system financing can be organized in very different w ay s (e.g. the 
almost complete financing from  taxation of the health service in the United 
K ingdom  is in n o  w a y  expressed here. It is concealed b y  the financing from  
contributions usual in other sectors).
2.1. Share of the receipts in gross domestic product
T he following table 2.1. show s h o w  the development of expenditure referred to 
at the beginning affects the receipts. T he table expresses the receipts as a  
percentage of the gross domestic product and this show s clearly that part of the 
G D P  used to finance social protection expenditure.
Table 2.1. :  Receipts as percentage of G D P
1 9 8 1
1982 
1987E E C B
29.0 29.7
28.9 30.8
28.8 29.0D K D F G R I R L I L N L U K
32.3 30.6 30.1 16.9 23.9 25.8 29.3 37.9 26.4
32.9 .6 28.6 19.2 24.2 26.8 30.2 39.0 27.3
30.6 29.3 28.1 21.4 23.9 28.6 29.4 39.9 26.4
In order to m ak e the trend clear the (actual) figures for 1 9 8 1  are incLuded. It 
is apparent that from 1 9 8 1  to 1982 in m ost of the M e m b e r States w as a further 
increase in the percentage. O n  the other hand, the projections for 1987, with 
the exception of Greece, Italy and the Netherlands, sh o w  a  fall, in m ost cases 
below the 1 9 8 1  level. However, this fall can also be partially the result of 
m ore optimistic assumptions concerning the future development of the gross 
domestic product.

T hus in 1982 between 19.2%  (G R ) and 3 9 %  (N L ) w as used to finance social pro­
tection, and for 1987 figures ranging between 21.4%  (G R ) and 39.9%  (N L ) are 
expected.
T h e following sections give details of the composition of the financial 
resources involved.
2.2. Nature of receipts
A t the beginning of this section it should once again be pointed out that the 
present projections for 1987 w ere undertaken o n  the basis of constant national 
legislation (reference date: 1st January 1985). This is important, since the 
structure of receipts has recently been increasingly the subject of discussion 
and within the period under review changes could take place which cannot be 
foreseen at present.
a) Structure
A  breakdown of receipts according to their nature show s that in 1982 over the 
average of the C om m unity two-thirds of funds continued to b e obtained in the 
form  of contributions (by employers and insured persons). In 1987 too this will 
have changed very little. A bout 3 0 %  co m es from  government subsidies while the 
rest com es from  various other receipts. M o re informative than these overall 
figures, however, are their national composition as show n in the following chart 
2.1.:

Chart. 2.1.- Nature of receipts: percentage structure
1987
N A T U R E  (1) 
Social
contributions
Funds from 
government
Other receipts 5.1B  O K
59.0
58. ;15.* 74,
75.022,77,8
2.819. 247.4
49.6F  G R  IR L  I 
35.1 73,9
64.0 24,5 35.2L  N L  U K  (3) 
58.3 | 63.2 48.7
19.2
— j..42.6
9.6 3.4 3,0 3.0 0.9 1-6 6.5 17.6 8.7
1982
Social
contributions
F unds from  
government
Other receipts59.5 !  11.7
36.17 1  .7
82.9
-4 -77.2
19.3 19.75 1  .2 35.1
42.67 0 .1
63.657.2 66.6
27.5 33.3
—  —i —I20.248.1
4 3.2
4 - i
5.2 4.4 5.4 9.0 3.2 6.2 1-3  2-4  9.5 13.2 8.7
(1) T h e classifications in this report are defined in the "European system of integrated 
social protection statistics: M ethodolgy - part I", Eurostat, 1 9 8 1
(2) T h e E E C  data is an addition of each country's am ount in E C U s. For 1987 the latest 
available exchange rates were used (August 1985).
< 3 ) U K  data refer to financial not calendar years (eg. 1st April 1982 to 31st M arch 1983).

In 1982 the importance of the other receipts w as slight, and b y  1987 (with the 
exception of D enm ark and the Netherlands) it will tend to reduce further. O n  the 
other hand, well over 9 0 %  of total receipts c o m e  from  either social security 
contributions or government funds. If w e  com pare country with country the 
balance between the tw o varies sharply.
M ost of the countries base themselves primarily o n  social security 
contributions. U p  to 7 5 %  of resources c o m e  from  this quarter (Germ any, France, 
Italy). There are significant differences, however, only in the figures for 
Ireland (35.1%  in 1987) and above all for D en m ark  (15.4%). O ver the period in 
review there will be very little change in these tw o countries in the 
traditionally prevelant m ethod of financing social protection from  general 
budget funds. In 1987 in Ireland, the government subsidies am ount to about 
two-thirds and in D enm ark to about threequarters of total receipts. O nly in 
Greece and the United K ingdom  is social protection financed m ore or less equally 
from  contributions and government subsidies.
O nce again here it m ust be stressed that these figures are in each case national 
averages based o n  the pattern for the whole system of social protection. In 
individual sectors very considerable variations can be found, as sh o w n  b y  the 
example quoted above of the national health service in the United K ingdom .
T he picture given in chart 2.1. show s the final percentage breakdown in 1987, 
but it does not show  whether the change in comparison with 1987 is attributable 
to the fact that one proportion is increasing and another decreasing or whether 
both are increasing or falling, with, at the sam e time, one element stronger 
than the other.
A  complete survey of the likely changes in 1987 is given b y  the following chart 
w hich m akes it possible to com pare the average annual changes during the period 
under projection. In the process the varying rates of inflation in the 
individual countries (using the consum er Drice index) are taken into account. 
Since the yardstick for each receipt com p on en t is the sam e for each country 
comparisons can also be established between individual kinds of receipt.b ) Trends

Chart 2.2 - Nature of receipts - Average yearly changes 1982 - 1987
(adjusted for projected inflation)
0 OK 0 f G« IRL I L ML UK
Soc i  a l
contributions
funds from 
government0.2
Total
receipts0.6 17.1 1.21.5 4.3 2.2 5.0 1.2 1.9!
r ~ s
1.8
- O.f -  1.50.8£ •11 2 .3 1  .51.9 !  :
1.2 '  0.7 ■  1.4 ,_CL5.- 1.3F
5.9 2.  2
l. .  -J3 .9 0.81.41 1.6
For the average of the C om m unity an annual real growth rate of total receipts of 
1.2%  is expected with social contributions at 1.6%  predominating over funds from  
government at 0.2% . However, it is impossible to discern any such uniform trend 
I  at national level. In D enm ark, France, Italy and the United K in g d o m  the growth
in social contributions predominates, thus in both the country where, at 7 7 % , 
total receipts originate from  this source to the greatest extent (F R ) and in the 
country w hich at about 1 5 %  least resorts to this source of funds (D K ). O n  the 
other hand, in Belgium, Greece and Luxem bourg the probable increase in funds 
from  Governm ent predominates.
T he highest average growth is projected for Greece (5.9%), Italy (3.9% ) and 
· ;  Ireland (2.2%). In Greece, the m ain increase stems from  funds from  government,
in Italy from  social contributions while Ireland both types of receipt increase.

In certain countries the growth of receipts is less dependent o n  social 
contributions or funds from  government and m ore o n  "other receipts" (not 
indicated in the chart). This is the case for L uxem bourg and the Netherlands 
where the development of total receipts is less affected b y  the tw o m ain 
headings quoted, but results from  the som ew hat m arked annual real change in 
"other receipts" (Luxem bourg: -6.4%; Netherlands: +7.5%). Details concerning the 
(nominal) level of the different kinds of receipt for 1982 and 1987 can be taken 
from  tables 1  and 2  in the A nnex.
2.3. Social contributions in m ore detail
Social contributions divide into tw o m ain groups depending o n  whether they are 
contributions paid b y  employers or those paid b y  protected persons.  T h e first 
group is further subdivided according to their nature i.e. according to actual 
or imputed contributions, and the second group according to the position of the 
contributor in relation to working life, i.e. according to whether they are 
employees, self-employed or others (pensioners, etc.). In this connection, both 
the private sector and the government are to be regarded as employers.
Actual contributions cover those payments which the insured persons or their 
employers pay directly or via a  collecting point to the institutions w hich grant 
social benefits, in order to obtain entitlement to these social benefits and/or 
to obtain the benefits themselves. Im puted social contributions are the 
counterpart or value of benefits, p a ^ d i rect ly b y  employers to past or present 
employees and other entitled persons. '
O n  average for the C om m unity just over 6 0 %  of social contributions are provided 
b y  the employers and just under 4 0 %  b y  the insured persons. In their turn the 
employers" contributions consist about 3/4 from  actual and 1/4 from  imputed con­
tributions. In the case of the contributions provided b y  the protected persons 
over 3/4 of these are employees.
During the period under review very little change taices place as regards these 
basic figures.
(1) E U R O S :A T : European system of integrated social protection statistics
methodology -  Part 1, chapter 7.

Table 2.2 :  Nature of social contributions - Percentage Structure
1987
E E C  B  D K  D  F
Social contributions %  %  %  %  %G R  IR L  I L  N L  U K
% % % % % %
E m p loyers 
Actual 
Imputed65.0 67.8 
47.8^ 52.8 
16.7B  15.072.3 
38.8
33.457.7
37.6
20.168.0
56.0
12.047.6 64.3 
42.9 
2 1  .478.4 56.5 
56.1 42.0 
22.3 14.546.8 64.6
40.7 47.3
6.1 17.3
Protected persons 
Em ployees 
Self-employed 
Pensioners or 
others35.0 32.2 
26.6^ 25.3 
4.4C  6.0
3.4 0.927.7
27.742.3 
3 1  .6 
1.5
9.232.0
25.4
6.652.4 35.7 21.6 43.5
13.7 37.7
7.9 5.353.2 35.4
38.1 33.3
4.6 1.5
0.5 10.4 0.6
Total 100 100 100 100 100 100 100 100 100 100 100
1982
E E C B D K D F G R IR L I L N L U K
Social contributions % % % % % % % % % % %
E m p loyers 64.7r68..678.757..169.,749.7 66.27 8 ..759.. 149.665.9
Actual 66.853..329.636..557..0 - 43.35 3 ..744..342.947.2
Imputed 17.5B1 5 ..342.22 0 ..6 12..7 22.92 5 ..014..7 6.718.6
Protected persons 35.3r3 1  ..4 2 1  .34 3 ..0 30..3 50.3 33.82 1  ..340..950.434.1
Em ployees 27.°f2 3 ..9 2 1  .33 1  ..7 2 3 ..9 - - 1 5 ,.035..436.932.2
Self-employed 3.8C6 ,.6 - 1 ..5 6..4 - - 6,.3 5 ..0 3.9 1.3
Pensioners or
others' 3.9L 0,.9 9 ..8A0 ,.5 9.6 0.7
Total 100 100 100 100 100 100 100 100 100 100 100
B  Excluding Greece
C  Excluding Greece and Ireland. In the case of France, "pensioners or other 
includes under "self-employed".
A  Included under "self-employed".i  s

This development is once again reflected in the national figures given in table 
2.2, W ith the exception of the Federal Republic of G erm any, in all the countries 
there is a  m ore or less sharp fall in the proportion of the social contributions 
borne b y  employers with a  corresponding increase in the part to be borne b y  the 
protected persons. This shift is m ost m arked in D en m ark  6.4 percentage points. 
A t the sam e time, there is also a  sharp redistribution in the relationship 
between the actual and the imputed employers' contributions. A t the sam e time, 
in the case of D en m ark  in particular, these figures should not be interpreted 
without consulting chart 2.1. In 1982 only 11.7%  and in 1987 probably 15.4%  of 
total social security receipts are financed in D enm ark from  social insurance 
contributions. In absolute terms therefore the changes sh o w n  in table 2.2. 
remain within strict limits.
2.4. JSector of origin
a) Structure
In the following breakdown of receipts according to sector of origin a  
distinction is m ad e between enterprises, general government, private households 
and other sectors (T he enterprise sector in principle includes both private and 
public enterprises, but in certain countries so m e  activities are still 
classified as government). In its turn the government sector is only recorded 
in the form  of a  global figure and m ore detailed information can be found in the 
A n n ex  in tables A -1  and A-2, which subdivides data further into central 
Government, local government and social insurance. U nder other sectors reference 
is primarily to private organizations and the rest of the world. Quantitively 
speaking, they are of slight importance.
T he m ain burden (m ore than 9 9 % ) is borne b y  the three sectors enterprises, 
general government and private households, with the general government 
accounting for about 2/5, the enterprises for 1/3 and the private households 
1/4.
il

Chart. 2.3. - Receipts b y  sector of origin: percentage structure
1987
E E C D K G R  IR L N L  U K
Enterprises
G overnm ent
HousehoIds 
Other sectors33. 9
33.5
26.9
0.732.5
47.0
20.3'4 .1
89.1
4.336. t
30.1
32.840.:
3 1
26.3
0.2 2.5 0.5 1.84.0 32.1 27.3
72.4
12.35.8 46.432.6 29.4
33.0
3 1 .8 1  26.2 33.753.3
17.4
1.1 0.3 0.1 0.6 0
1982
Enterprises
G overnm ent
HousehoIds 
Other sectors3
40.0
25.933.5
45.5
20.63.1 34.9 4 1  .0
93.1
2.5--1--52
.4
32.;52.1
24. 7
0.8 0.4 1.2 0.5 2.214.21 29.9 27.9 32.1 29.7
72.
11.839.3
30.447.6
24.233.4
54.053.8
16.5
1  .5 0.4 0.4 0.6 0

A s  chart 2.3. shows, the national figures, diverge in part considerably. In 
G erm an y  and in the Netherlands for example, the distribution is very even, in 
each case about 1/3 of resources c o m e  from  the sectors quoted. O n  the other hand 
financing b y  the general government dominates in D en m ark  (about 9 0 % ) and in 
Ireland (over 70% ). D enm ark is also the only country where within the government 
sector local authorities play a  considerable role in financing, covering about 
3 6 %  of the share taken by the general government. In the case of other countries 
this share is considerably low er (see tables A -1  and A -2  in the Annex).
b ) Trends
Chart 2.3 show s trends in the sectors of origin of the receipts. T he chart show s 
a  slight increase in the burden o n  enterprises u p  to 1987 with a  clearly 
interproportional increase in the burden in private households. It is the 
general government w hich will profit from  this trend, since its share of 
financing will fall from  40.0%  to 38.5%  or 1.5 percentage points. T h e share of 
the "other sectors" hardly changes. Chart 2.4. m akes this clear o n  the basis of 
average (inflation-adjusted) annual rates of increase over the period under 
review. W hile total receipts within the C om m unity w ill  increase in real terms b y  
a probable 1.2%  annually, for the sector "general government" the figure is only 
0.6%  while for enterprises and private households it is 1.6%  and 2 .0 %  
respectively.

Chart 2.4 - Sector of origin - Average yearly -changes 1982 - 1987
E E C B  D K  D
Enterprises1 .6 0.1 7.2(adjusted for inflation)
F  G R  IR L  I L
r -  -1 .N L  U K
1.4 1.1 1.9 5.40.4î  1-8 1-4
State0.6 1.4 5  -1.0 0.8 2.2 1  .90.3 1  " >  I  · t_ 1.4
H ouseholds0.4s
12.9
0.92.6 i.3 4.9 i  2.4L  !  *1.3 !  !  2.7
Total receipts1 .-2 1.4 0.5.35.92.2 3.93.8 1.4 1.6
This also corresponds to the trend at national level. W ith the exception of 
Belgium  and Ireland the sector "G overnm ent" sh o w s the lowest rates of increase 
in all countries; in G erm an y  a  real annual decrease of 1 %  is to b e  expected. 
This discrepancy is clearest in the development in D en m a rk  w here the burden o n  
enterprises and private households will increase annually b y  7 .2 %  and even 1 2 .9 %  
respectively. A t the sa m e time it should once again b e pointed out b y  w a y  of 
caution that these tw o  sectors together in D en m ark  account for less than 1 0 %  of 
overall financial provision. Nevertheless as a  result the share of the 
G overnm ent in financing social security goes d o w n  from  9 3 .1 %  in 1 9 8 2  to 8 9 .1 %  in 
1987.

Taking all three sectors together the average highest rates of increase are 
show n for Italy and Ireland, w hich at the sam e tim e together with B elgium  is the 
only country in w hich the enterprises sector sh o w s the lowest rate of increase 
of all the sectors analysed here, (in this connection G reece is not taken into 
account since n o  figures are available o n  the sectorial origin of receipts).

CHAPTER THREE
E X P E N D I T U R E
3.1 Social protection expenditure and benefits
Before examining each function covered b y  social protection, it is 
appropriate to note that not all social protection expenditure goes directly o n  
benefits received directly b y  persons. T h e  reasons are, firstly, that 
expenditure o n  capital equipm ent takes place as well as expenditure o n  current 
needs, this s u m  m aking u p  the total of social protection expenditure :
current expenditure 
+  capital expenditure
=  social protection expenditure
The available information on capital expenditure is discussed 
later in this chapter.
Current expenditure may be further subdivided into :
social protection benefits 
administration costs 
other current transactions.
Social protection benefits m a y  be divided into :  
social benefits
other benefits in the form  of goods an d  services 
fiscal benefits.
T h e  difference betw een "social benefits" and "other benefits in 
the form  of goods and services" is discussed in A ppendix C  of this report.
T h e  relative importance of social protection benefits in the 1 9 8 7  
projections is sh o w n  in the following table :
It

Table 3.1 Current expenditure o n social protection :  percentage structure
1 9 8 7
1  —  
1  
11  E E C
!  %B
%D K
%D
%F
%G R
%I R L
%I
%L
%N L
%r
u k | 
%  I
1
|Social protection 
|  benefits j  96.2 94.9 97.3 96.5 95.3 95.3 96.4 93.4 96.1 95.9I
I
96.4 |I1
|  Administration 
j  costs and other 
|  current 
|  expenditure
i1  3.8 
I5.1 2.7 3.5 4.7 4.7 3.6 6.6 3.9 4.1I
I
I
I
3.6 |
I
i
jTotal current 
|  transactions(iT  '  
|100 1 0 0 1 0 0 1 0 0 1 0 C 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0I
I
1 0 0  |  
I
Table 3.1 show s that administrative costs m a d e  u p  around 5  %  of 
total current expenditure, ranging from  6.6 %  to 2.7 %  according to the country. 
It should b e rem em bered that this total of administrative costs m a y  em brace very 
different percentages according to the type of schem e, with social aid schem es 
generally requiring m u c h  greater administrative costs than insurance schemes, as 
a  percentage of benefits.
"Other current expenditure" m ak es u p  a  residual item  of am ounts difficult to 
classify elsewhere, usually less than 1  %  of total current expenditure.
3.2 Social protection expenditure and gross domestic product
Direct comparisons of total expenditure are not very revealing 
because of differences in population size, and in the purchasing pow er of m o n e y  
sum s. These problems can b e partly overcom e b y  expressing social protection 
expenditure as a  ratio of gross domestic product ( G D P )  as in table 3.2 below. 
Fiscal benefits are excluded from  the table, since only certain countries 
provided such data (see table 3.15).
Table 3.2 Social protection expenditure as a  percentage of G D P
EEC B DK D F GR IRL I L NL UK
1987 27.0 28.1 26.4 28.5 29.2 20.9 22.7 25.5 27.2 32.5 22.2
1 9 8 2  27.4 30.5 30.3 29.8 28.5 19.0 22.8 26.1 28.9 33.2 23.5
T h e figures sh o w  that the E E C  percentage of 27.4 %  in 1 9 82 is 
projected for 1 9 87 to fall slightly to 27.0 % .
Appreciable differences occur a m o n g  M e m b e r States. Falls in the 
percentage are projected for all countries except France and Greece. It should 
be noted that expenditure data for Ireland d o  not include occupational pensions 
or sick pay.

T h e above comparisons d o  not separate benefits in cash from  
benefits in kind such as health care and social w ork. S u ch  a  separation is given 
in the following table, w hich indicates considerable differences betw een 
countries :
Table 3.3 Soci al protection benefits in cash and in kind as %  of G D P  
EEC
C ash
1 9 8 7
1 9 8 2
K i n d
1 9 87
1 9 8 2BDKD G R  I R L L N L
18.0
18.0
7.5
8.020.7
22.8
6.0
6.115.4
18.1
10.4
11.518.4
18.5
9.1
9.718.9
18.4
8.9
8.6n/a
n/a
n/a
n/a15.2
14.6
7.4
8.318.2
17.8
5.3
6.419.4
20.2
6.7
6.425.1
25.4
6.1
6.6U K
15.5
15.6
6.4
7.1
T h e table sh o w s that a  fall is projected only in benefits in kind 
for the E E C . France, Italy and Ireland project a  slight increase in the 
percentage of G D P  for cash benefits, with reductions in other countries, 
particularly B elgium  and D enm ark. T h e reduction in the percentage for benefits 
in kind is particularly m arked in D enm ark, Ireland, Italy an d  the United 
K ingdom .
3.3 T h e  functions of social protection benefits
T h e differentiation of benefits into separate "functions" or 
"risks", in insurance terms, is based o n  a  comparable methodological fram ew ork 
w hich serves as the basis for nation^J^statisti cs and projections. Certain over­
all headings m a y  be distinguished :
Health
O ld  age (including survivors)
Maternity/Fami ly
E m ploym ent (incl. promotion of em ploym ent an d
unem ploym ent)
H ousing
Miscellaneous
a. Structure
T h e following chart sh o w s the relative importance of these 
functions in the total of social protection benefits :
(1) See Appendix D  *or. definition of functions.

C  hur L  .5.1 : ;  o  c  i  <  j L  protection benefits by main function :  percent, in «?
structure.
1987
H ealth
O ld age and 
survivors
Maternity/ 
F a m i ly
E m ploym entEEC
35,5
/
9,2
M i  seel laneousi -----
(i
ncl. housing)DK D 6R IRL NL UK
33,3
38,1
< 1 7 ,640,8
48,0
/
7,5
,8 3,1 f 3L0,343,7
/
43,78,1
to742,1
32,0
/ /
10,1
\  \
.12,6
\  \/  
42,3
11,3
11,2
N  1_
■3,2
1 9 82
EEC NL UK
Health
O ld age and |  
survivors i 7  40,9
Maternity/
Fam ily
\ ' '  ~  \ E m ploym ent \  9,6 s ·
M i  seel laneous - - - - -
(i
ncl. housing)

It can be seen that the tw o  functions "Health" and "O ld age" are 
the tw o  m ost important functions of social protection benefits, taking betw een 
just over two-thirds and just over four-fifths of the total depending o n  the 
country.
If the 1987 projections are com pared to 1982, for the E E C  there 
are increases in the share of "O ld age" and "Em ploym ent", with a  fall in that of 
Maternity/Family".  A t national level, certain countries s h o w  larger changes in 
the share of functions between the tw o  years :  for "Health", Ireland, Italy and 
the Netherlands; for "O ld age", D enm ark, Italy and Greece; for "Maternity/ 
Fam ily" Belgium  with a  fall in share and the Netherlands with a  rise; and for 
"E m ploym ent" Belgium , Ireland and the Netherlands with a  rise and D e n m a rk  with a  
fall.
b. Trends
T h e  following chart gives perhaps a  m o re vivid illustration of the 
projected trends b y  attempting to sh o w  rates of change shorn of the differing 
rates of inflation, using constant prices b y  reference to the consum er price 
index. It should be noted that functions having a  relatively sm all share can b e 
influenced m u c h  m o re strongly b y  policy and legislative changes than program m es 
involving a  m u c h  greater com m itm ent of trained personnel and other resources.
T h e advantage of this presentation is that it not only enables 
comparisons between countries, it also sh o w s u p  for the sa m e country the differ­
ences in rates of change a m o n g  the m ain functions.
A n  increase is projected in "Health", a  slightly greater one for 
"O ld age", with the largest increases projected for "Em ploym ent", except in 
D enm ark. Certain countries project decreases for "Maternity/Family", except 
Ireland, Italy, the Netherlands and the United K in g d o m .

Chart 3.2 :  M ain functions of
percentage changesocial protection benefits
(adjusted for inflation)average yearly
E E C
Health 1,0
O ld age and 
survivors1,5B  D K  D G R  IR L  I
0,7 0,2 t  [075- 2,4
0,3
rzizi1,5 3,2N L  U K
■1,1 1,3 •1,2 2,0
2,3 3,6 ■0 ^ 5 ·, -0 t-6i1,8
Maternity/ 
F a m i ly
em ploym ent-0,9 -5,0 -0,3 -3,1 -0,3
2,4<
5,0 -4,1 -1,2 2,52,7 1,1 -1,7 3,5 0,8
7,8 2,5>
10,7 3,5 1,9

3.4 Health
a. T h e  risks covered
This m ain function is subdivided into three categories of
benefit :
sickness
invalidity/di sability 
occupational accidents and diseases.
(For detailed definitions, see A ppendix D ).
Chart 3.1 in Chapter 3.3 sh o w ed  a  marginal decline in the share of 
health benefits from  35.6 %  (in 1982) to 3 5 .5 %  (in 1987) of the total. It is 
perhaps relatively difficult to exercise stricter control over expenditure o n  
invalidity or disability and changes in the larger sickness function are likely 
to occur only slowly, leaving aside the occurrence of epidemics.
Table 3.4 Health benefits :  com ponent functions in %  (1987)
E E C  B  D K  0  F  6 R  IR L  I L  N L  U K
%o/ 0 /  0 /  0 /  0/ 0/ 0/ O/ 0/ 0/
/ e  / o  / e  / e  /o  / e  /o  /o  / o  / s
69.6 65.0 65.3 67.0 75.3 63.3 78.3 48.1 56.9 55.6 66.1
24.3 28.1 32.6 25.0 16.3 26.5 20.0 44.4 33.9 44.4 31.1
6.2 6.9 2.1 8.0 8.4 10.2 1.7 7.5 9.2 2.8
100 100 100 100 100 100 100 100 100 100 100
T h e table sh o w s the larger share of health benefits classified as 
invalidity in Italy and the Netherlands. Relatively m o re is spent o n  
occupational accidents and diseases in the Federal Republic of G erm any, France, 
Greece and L uxem bourg than in other countries.
b. C ash and kind
A n  important distinction to be m a d e  w h e n  looking at health 
benefits is the difference between benefits in cash and those in kind - health 
care. A lm ost two-thirds of health benefits are in kind, and the preponderance of 
benefits in kind for sickness contrasts with the opposite situation for 
invalidity/disability and occupational accidents and diseases w here around 
three-quarters of expenditure goes o n cash benefits.Sickness 
Invalidity/ 
di sability 
Occupational 
accidents 
and diseases

Table 3.5 Health benefit in cash and in kind :  %  structure in E E C , 1987
C ash  K i n d  Total
Sickness 18.8 81.2 1 0 0
Invalidity/disability 74.5 25.5 1 0 0
Occupational accidents
and diseases 74.0 26.0 1 0 0
Total, health 35.5 64.5 1 0 0
c.  A m o u n ts per person
A  comparison of am ounts per person for the different functions can 
give an  indication of the relative levels of coverage provided b y  the social 
security and health schemes. F o r m ore precise comparisons, it is important to 
com pare aspects such as conditions of eligibility, duration of benefits, etc., 
w hich for "general" schem es of social security are given in the C om m ission 
publication "Comparative Tables of Social Security schem es in the M e m b e r
States of the European Com m unities" .  T h e  comparisons are in current prices 
for the year in question.
d. Sickness
F or sickness benefits in cash, the total am o u n t of benefit 
adjusted for differences in purchasing pow er has been com pared to the population 
aged 2 0  to 59, as a n  indicator of am ounts received per person. A  similar 
comparison has been m a d e  for sickness benefits in kind, com pared to the total 
population. Great differences exist in these indicators for different 
countries :  for example, France w ould seem  to pay  out on e of the lowest am ounts
in cash benefits, but is projected in 1987 to spend the highest in benefits in 
kind. T h e Federal Republic of G erm an y  and the Netherlands p ay  out o n  average 
m u c h  higher sickness cash benefits than other countries.
(1) Published every tw o years. Latest edition refers to situation o n  1st July
1984.

Table 3.6 Sickness benefits per person (E E C  =  100 % )
In C ash  EEC B DK J >  £ GR JRL 1 _ L NL UK
1 9 87 (1) 2  1 0 0  1 0 3  1 0 0  1 5 5  6 3  n/a 1 0 4  6 0  - 1 6 6  9 1
In K ind
1987 10 0  8 7  1 0 2  1 1 8  1 4 3  n/a 5 6  8 2  - 9 0  6 5
e. Invalidity/Disabi Lity
T h e am ount of benefit w a s adjusted for differences in purchasing 
pow er and com pared to the population aged 20-59, except for Italy, w here such 
benefits rem ain payable after retirement age. A s  with sickness benefits, great 
differences appear from  country to country with the Netherlands an d  L uxem bourg, 
together with Italy to a  lesser extent, paying high cash benefits.
Table 3.7 Invalidity/Disability benefits per person ( E E C  =  1 0 0  % )
In C ash  E E C  B D K
1987 10 0  8 2  1 0 8
In K ind
1987 1 0 0  1 2 1  1 0 7D F GR IRL I L NL UK
7 9  5 9  n/a 2 5  1 9 4  - 1 9 3  5 7
9 4  9 1  n/a 9 3  7 1  - 1 0 0  1 3 8
3.5 O ld  age and survivors
a. T h e risks covered
T h e tw o  separate functions "old age" and "survivors" have been 
com bined, since in certain countries, survivors include not only "young" w id o w s 
but also w ar survivors, m a n y  of w h o m  are older than the norm al retirement age. 
T h e differences can be seen in the following table, where am ounts for survivors 
are particularly high in Belgium, the Federal Republic of G e rm a n y  an d  
L uxem bourg, while being lo w  in D en m ark  and the United K in g d o m .
(1) Adjustment for purchasing pow er based o n  m ost recently available statistics 
(1984).
(2) In view  of the L a r g e  nu m b er of "frontier" workers w h o  are entitled to 
benefits from  L uxem bourg but w h o  live outside it, n o  indicator is provided  
here.

Table 3.8 C opponents of old age and survivors - 1 9 8 7  (In % )
E E C
%B
%D K
%D
%F
%G R
%I R L
%I
%L
%N L U K
%
O ld  age 
.S u rv .iv a  rs80.2
19.869.4
30.699.7
0.367.1
32.983.1
16.993.5
6.577.2
22.877.4
22.662.3
37.788.8
11.295.9
4.1
T O T A L 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0
b. C ash  and kind
O nly in D en m a rk  are benefits in kind over 1 0  %  of the total :  
2 7  %  in 1982, projected to b e 28.5 %  in 1987. (M ainly social w o rk  care in 
special accommodation).
c. A m o u n ts per person
In com paring am ounts per person, the cautionary rem arks m a d e  in 
the previous section o n  health benefits should be borne in m ind.
T h e am ounts discussed here are the addition of old age bei^|its 
and survivors benefits, com pared to the population of legal retirement age
T h e  table below  indicates m ajor differences betw een countries, 
m u c h  less how ever than the differences seer, for sickness an d  invalidity benefits 
in cash. O ld  age benefits in D enm ark, France, G reece and the Netherlands w ould 
seem  to b e greater than in other countries, with Belgium, Ireland, Italy and the 
United K in g d o m  significantly low er (although the Irish figures om it private 
occupational pensions).
A  further report is planned w hich exam ines the net am ounts of old 
age pensions received b y  "m odel" household types, com pared to previous net 
earnings.
Table 3.9 O ld age and survivors benefits per person ( E E C  =  100 % )
EEC B DK D F GR IRL I L NL UK
1987 1 Ö 0  8 5  1 2 4  1 0 3  1 2 5  1 2 3  8 1  8 8  - 1 2 6  8 6
(1) A s  given in the "Comparative Tables of the Social Security S chem es in the 
M e m b e r States of the European Communities", 13th edition. S ee A ppendix E .
(2) S ee note 2 to Table 3.6.
(3) S ee note 1  to Table 3.6.
z s

3.6 Maternity/Family
a. the ri sks covered
Maternity benefits include both benefits in cash and in kind, 
although it could b e argued that the latter are m o re appropriately classified 
under health benefits (as is the case for Italy). Fam ily benefits are in m o st 
countries child benefits, the exception being Italy w here paym ents are also m a d e  
for a  spouse, dependent parents and grandparents.
T h e table below  sh o w s the relative share of maternity benefits 
com pared to family benefits projected for 1987.
Table 3.10 Maternity and family benefits :  percentage in 1 9 87
E E C
%B
%D K
%D
%F
%G R
%I R L
%I
%L
%N L
%U K
%
Maternity 12.7 4.9 16.2 15.3 15.6 15.6 18.7 9.5 20.0 3.7 12.0
Fam ily 87.3 95.1 83.8 84.7 84.4 84.4 81.3 90.5 80.0 96.3 88.0
T O T A L 1 0 0 1 0 0 10 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0
T h e differences between countries m a y  b e explained either b y  
different birth rates or different levels of maternity benefits in cash, or 
different levels of child benefit, as will be exam ined further below .
b. C ash  and kind
F or maternity benefits, three patterns can be seen: in o ne group
of countries, cash benefits predominate (D K , D , F , I, L), in another group 
benefits in kind d o  so (IR L, B , U K ), while in the Netherlands the split is about 
equa l.
Table 3.11 Maternity benefits in cash and kind :  %  in 1 9 8 7
E E C
%B
%D K
%D
%F
%G R
%I R L
%I
%lL _T 7/ oN L
%U K
%
C ash
K ind53.0
47.035.9
64.184.4
15.663.6
36.457.8
42.2n/a
n/a19.3
80.71 0 0
075.6
24.45 0
5 025.8
74.2
T O T A L 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0
Fam ily benefits are mainly cash benefits except in D en m a rk  an d
Italy.

Table 3.12 Family benefits in cash and kind :  %  in 1987
Cash 
K i n d
TOTALE E C
%B
%D K
%D
%F
%G R
%I R L
%I
%L
%N L
%U K
%
82.7 94.1 22.3 87.8 83.8 n/a 97.3 61.3 85.7 95.5 76.4
17.3 5.9 77.7 12.2 16.2 n/a 2.7 38.7 14.3 4.5 23.6
1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0
c. A m o u n ts per person
T h e following comparisons are based o n  the num ber of children aged
1 9  or under.
Table 3.13 Fam ily ( E E C  =100%)
E E C  B DK 6R IRL(1)N L  U K
C ash  +  kind
1987 1 0 0  1 1 1  1 3 5  9 3  1 2 5  1 6 5 5 8 2 1 2 9  1 0 6
T h e very lo w  figure for Greece should b e contrasted with D enm ark, 
France and the Netherlands. T h e  inclusion of tax benefits in such a  comparison 
w ould increase the figures for certain countries :  for example, the French 
figure w ould g o  u p  b y  around a  quarter, m u c h  higher than the E E C  average.
3.7 E m p loym en t
a. T h e  risks covered
This function is almost entirely m a d e  u p  of expenditure o n  cash 
benefits received b y  the unem ployed (including social aid benefits). Exceptions 
are the Federal Republic of G erm an y  and Ireland, w hich spend around a  fifth of 
em ploym ent benefits o n  job promotion and vocational guidance, an d  to a  lesser 
extent B elgium  and the United K in g d o m  w hich spend just under o ne fifth of the 
total in this w ay . S o m e  countries provided n o  data o n  promotion of em ploym ent.
(1) See note 2  to Table 3.6.
1 1

Table 3.14 E m ploym ent benefits :  com ponents (1987)
E E C B D K D F G R I R L I L N L U K
Promotion of 
em ploym ent 10.0 16.3 5.0(2) 20.9 4.2 -20.8 3.1 4.0 -17.4
U nem ploym ent 90.0 83.7 95.0 79.1 95.8 1 0 0 79.2 96.9 96.0 1 0 0 82.6
T O T A L 1 0 0 10 0 10 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0
b. C a sh  and kind
C ash  benefits count for practically all benefits under these
headings.
c. A m o u n ts per person
In view  of the differences from  country to country in defining the 
registered unem ployed, an  analysis of am ounts per person runs the risk of 
providing quite misleading comparisons. It w a s therefore not attempted, 
particularly since w o rk  at the Statistical Office is proceeding o n  the 
recipients of unem p o y m en t benefits, com pared to the num bers unem ployed.
3.8 Fiscal benefits
In order to obtain comparable data for the different countries of 
the C om m unity, it is important to take account of the different w a y s in w hich 
social protection benefits are delivered to beneficiaries. Previous sections 
have referred to social protection benefits in cash and kind (including other 
benefits in the form  of goods and services, essential if a  worthwhile com parison 
is to be m a d e  in particular betw een countries with a  national health service an d  
those w here consum ers pay first before reimbursement). Taking cash benefits, it 
is only benefits directly paid w hich are included, but a  person w h o  pays taxes 
m a y  have his or her disposable incom e increased via a  "fiscal" benefit, w hich 
allows a  reduction in the am o u n t of taxes paid. Since this represents a  loss in 
receipts for the State rather than extra expenditure, it w ould not b e included 
in data o n  expenditure and receipts. It w a s therefore necessary to create a n  
extra heading in order to include such m ean s of increasing the disposable incom e 
for reasons of social policy of certain persons or households.
It is how ever a  difficult matter to obtain an  accurate idea of the 
am ounts involved and there is m u c h  debate about the correct assumptions to use 
in estimating individual fiscal benefits, as well as whether o n e can  ad d  an y  
such am ounts to give a  total picture. Certain countries have provided estimates 
(including totals) for m a n y  years w here others are not prepared at present to 
give a  single indication. Further research w ould undoubtedly b e useful an d  is 
continuing at the Statistical Office of the European Com m unities.
(2)A round 2 0  %  of total em ploym ent benefits m a y  be considered as promoting 
em ploym ent, using D anish national classifications.

T h e present report can only give a  patchy indication of the 
am ounts likely to b e involved. N o  data w as provided b y  Belgium , D enm ark, Greece, 
L u x em b o u rg  and the Netherlands; the United K ingdom , Italy, the Federal Republic 
of G erm an y  and Ireland provided both individual items and a  total. Italy and the 
United K in g d o m  felt unable to give 19 8 7  projection for the items estimated for 
1982.
The available data is presented below, but should be considered 
very much an approximate guide to the probable amounts involved. Even so, it 
would seem that any comparison between countries as regards the "Family" 
function should attempt to include fiscal benefits and the same may apply to the 
"Housing" function.

Table 3.15 Fiscal benefits expressed as a  %  of all types of social protection
benefits for each function
Country 1 9 8 7 1 9 8 2
Federal Republic of G erm an y
H e a  1th 
Sickness 
Invalidity 
O ld  A g e  
F a m i ly
Promotion of em ploym ent 
H ousing
Total Social Protection Benefits0.8
0.1
3.0 
1.6 
8.5
13.8
20.5
3.00.8 
0.1 
3.0 
1.6 
9.5 
2 1  .9 
24.6 
3.2
France
Fam ily 26.3 23.5
Ireland
Sickness 
O ld A g e  
Fam ily
U nem ploym ent
Housing
Total Social Protection Benefits3.7
5.5
18.7
4.5
37.7 
8.00.8
4.2
23.9
0.9
25.5
5.4
Italy
Health
Sickness
Invalidity
Occupational accidents
Maternity and family
Total Social Protection Benefitsn.a. 
n. a. 
n.a. 
n.a. 
n.a. 
n.a.2.0
0.4
1.7 
22.1 
35.0
3.7
United K in g d o m
Health n.a. 
Sickness n.a. 
Invalidity n.a. 
Occupational accidents and diseases n.a. 
O ld A g e  n.a. 
Survivors n.a. 
Maternity n.a. 
Fam ily n.a. 
Promotion of em ploym ent n.a. 
U nem ploym ent n.a. 
H ousing n.a. 
Total Social Protection Benefits n.a.2.3 
1.7
2.9
10.0
7.1
2.4
4.2
15.1
3.5
6.5
82.2
6.9
(1) Qualifiying interest o n  loans for purchase of owner-occupied property 
am ounted to £2.15 billion in financial year 1982/1983, com pared with £2.74 
billion in housing benefit.

3.9 Capital transactions
Difficulties in calculation also se em  to have prevented m o st 
countries from  giving an y  data o n  capital transactions - although they w ere 
requested not to d o  so if the am ounts w ere less than 1  %  of total expenditure. 
It w a s originally expected that countries with a  national health service w ould 
have significant am ounts under this heading, reflecting for exam ple the 
construction of hospitals or other social welfare facilities. In m ost other 
countries relying o n  reimbursement of costs or "prices" paid b y  the consumer, 
such prices cover all costs incurred in providing the care, both current an d  
capital costs. It T s  possible that the present need to L im it expenditure o n  
health care has greatly reduced the am ount of capital expenditure, but it is 
also likely that this heading, again a  relatively recently introduced item, has 
not yet been fully defined in m ost countries.
A s  with fiscal benefits, the data available are presented below  :
Table 3.16 Capital transactions expressed as a  %  of current transactions
Country 1987 1 9 8 2
Federal Republic of G erm an y  
Ireland 
Italy1.3
1.4i.» 
1.5 
1.2
In the previous annual report (giving projections for 1 9 86 an d  
statistics for 1981) also the United K in g d o m  provided estimates.
T h e figures for Ireland and Italy above represent the am ounts 
spent o n  the hospital building and development program m e. T hose for the Federal 
Republic of G erm an y  m a y  be split as follows :
D M  million
Health-related expenditure 6  1 8 0
Social security 2  5 50
of w hich:
Sickness, maternity 330
O ld  A ge, invalidity, survivors 360
U nem ploym ent 370
Fam ily
Other 1  490
Total 8  730

APPENDIX A
DETAILED TABLES

Table A - 1 :  Receipts - 1982 (mrd. nat. currency)
NATUREEEC
(ECU)
1. social contribution
1.1. employers
1.1.1. actual
1.1.2. imputed
1.2. protected persons
1.2.1. employers
1.2.2. self-employed
1.2.3. pensioners or  
others
2. general government funds
3. other receipts
A. total receiptsA 59.11
297.14 
214.76 1)  
80.46 1)
161.97 
123.78 2)  
17.64 2) 
18.12 25
208.97
36.82704.9
483.6
375.6 
108.0
221.3
168.5
46.2
6.6
428.2
52.8
704.83
SECTORS OF ORIGIN
1. enterprises
2. general government
2.1. central govt.
2.2. local govt.
2.3. social security funds232.22 1)
3. households
4. other sectors
5. total receipts279.13 1)  
230.06 1)  
45.55 1) 
3.47 1)1185.9
397.7
180.60 1)
5.55 1)539.2
489.0
47.3
2.9OK
244.7
704.834.3
1185.98.87
8.33GR IRL
18.04 339.6
14.20 193.6
5.33 123.8
69.8
3.84 146.0
3.84 107.5
5.2
33.3
127.55 116.7
17.2
4.83 165.2
51.73 
8.94I L
(1000 Mrd)NL UK
787.7 247.2
549.1 122.9
448.8 
100.3
238.6
188.0
)
) 50.6 
)124.31.10
0.73
0.48
0.25
0.3788.5
69.6 
47.5 
22.1326.53 95.7 37.13
15.,67 47..524.46
11..76 41..0 17.54
3..91 6.4 6.91
18.9 10.85 48.2 12.67
13.3 9.38 35.3 11.95
5.6 1.34 3.7 0.48
0.14 9.2 0.25
201.7 205.6 2.00 34.8 15.47 29.0 33.34
33.3 30.2 0.04 3.1 4.39 18.9 6.72
153.92 473.6 1022.7 483.0 3.15126.4 46.39 143.5 77.19
419.0 0.45 37.8 12.92 46.1 22.92
153..5 328.4 2.28 49.7 22.08 47.9 41.55
120..9 285..8 2.16 43.2 19.91 39.3 34.98 ;
i
31..5 35..5 0.12 5.9 1.86 8.2 6.46 j
1.2 7.1 0 0.6 0.31 0.4 0.11 ;i
3.84 152.4 252.9 0.37 38.4 11.21 48.8 12.73
1.90 2.4 22.4 0.05 0.5 0.17 0.8
153.92 473.5 1022.7 483.0 3.15 126.446.39 143.5 77.19
1> Except óreece 2> Except Ireland and Greece

Table A - 2: Receipts - 1987 (mrd. nat. currency)
EEC
(E C U )C DK D F GR IRL I
(1000 Mrd)L NL UK
" nature""’
1. social contributions 656.06 943.7 32.01413.412045630.0 175188.1 37681101 5' .24
1.1. employers 426.45 639.5 23132384 8196300.0 112147.4 2128 516 33.10
1.1.1. actual 313.851)497.8 12431556 6754 075105.5 1582 448 24.23
1.1.2. imputed 109.721)1417 1070 828 1442 037 42.0 546 67 8.87
1.2. protected persons 229.65 3042 8871750 3849330.0 062 40.7 1641 586 13.15
1.2.1. employees 174.253)2391 8871309 3056 25.9 1420 420 IT.06
1.2.2. self-  
employed
1.2.3. pensioners  
or others29.00
22.413)
3)56
84
7 -6
382
0)
) 79 
)314.8 2
001
205
111
53.76
■3.33
2. general government funds 276.51 6099155971241 2976660.0 319 62.2 2279 334 44.77
3. other receipts 50.22 449 1990 187 46240.0 004 4.1 423 307 Ç.18
4. total receipts 982.83 15985207885563154831330.0 498254.5 6470174.3 105.19
SECTORS OF ORIGIN  
1. enterprises 328.741)5192 8.61 2035 6268 070 81.7 1765 568 33.88
2. general government 373.521)751.5 185.20 1675 4856 360 91.0 3004 576 56.06
2.1. central govt. 251.442)683.0 97.71 1250 4182 342 2786 461 47.46
2.2. local govt. 55.982)66.2 66.70 411 569 018 198 110 8.45
2.3. social security funds 5.232)2.3 20.78 14 105 0 020 05 C. 14
3. households 260.911)324.5 8.87 182.5 4074 062 81.0 1693 588 18.26
4. other sectors 7.111)3.3 5.20 27 285005 0.7 008 11 -t
5. total receipts 982.83 1598.5 207.88 556.3 154831330.0 498254.5 6470174.3103.19i
U >
1) Except Greece '2) Except Italy and Greece 3) Except Ireland and Greece

Table A - 3 :  SOCIAL PROTECTION EXPENDITURE O) - 1982 (mrd. nat. currency)
EEC
(ECU)B OK 0 F GR IRL I
(1000 Mrd)L nl UK
I. CURRENT TRANSACTIONS 669.1 1174.0 141.73 467.6 1015.6 479.4 3.099 121.4 44.4 66.56
Ac  Social protection benefits 639.5 1113.6 138.08 451.2 963.7 454.3 2.965 113.9 40.9 117.9 6 4 . 2 4
1. Health 235.3 364.5 45.20 178.7 321 „3 85.5 1,125 50.5 17.6 53.9 19.12
1.1. Sickness 154.6 232.6 3.3.21 119.8 237.6 47.6 0.915 26.5 9.7 3' .5 13.07
1.2. Invalidity, disability 66.0 100.7 11.09 44.6 54.2 27.7 0.195 21.6 6.2 22.4 5.42
1.3. Occupational accidents  
and diseases15.0 31.3 0.90 14.3 29.5 10.2 0.015 2.4 1.7 - 0.63
2. Old age 210.8 292.9 46.92 129.6 325.1 291.5 0.751 38.8 11.4 32.1 25.75
3. Survivors 53.5 135.7 0.61 62.5 66.2 24.8 0.205 11.6 7.0 3.3 1.21
4. Maternity/Family 61.4 120.4 14.51 34.4 111,6 13.8 0.359 9.0 3.7 1C.2 7.60
4,1. Maternity7.6 3.3 1.64 4.2 18.6 2.0 0.076 0.9 0.6 C.4 0.92
4 F a t n i  l y53.9 117.1 12.86 30.2 93.0 11.8 0.283 8.1 3.1 9.8 6.63
5 «  tmoioyment56.1 171.6 23.38 32.6 93.3 9.7 0.379 3.8 1.0 12.8 7.15
5.1. Placement, vocational  
guidance, resettlement5.4 20.4 1.05 5.5 3.7 - 0.034 0.1 0.1 - 1.09
5.2. Unemployment 50.6 151.2 22.33 27.2 89.6 9.7 0.345 3.7 1.0 12.3 6.06
6. Housing 11.6 - 1.99 3.9 25.8 2.6 0.102 0.1 0.0 1.4 2.74
7. Miscellaneous 10.6 3.8 5.48 9.5 20.4 26.4 0.044 0.2 0.0 2.2 0.67
B.Administration costs 23.4 55.8 3.66 12.7 42.4 17.1 0.129 4.2 1.3 4.0 2.59
C.Other current expenditure 6.0 4.6 - 3.7 9.5 8.0 0.005 3.3 2.2 G .3 0.03
II. CAPITAL TRANSACTIONS n.a n.a 8.7 n.a n.a 0.050 1.4 n.a-n.a
III. SOCIAL PROTECTION EXPENDITURE
___________________476.4 3.149 122.8 126.9
Ci) Excluding fiscal benefits
C->4 T

Table A - 4 :  SOCIAL PROTECTION EXPENDITURE ( f )  - 1987 (mrd. nat. currency)
EEC
(ECU)B DK D F GR IRL I
(1000 Mrd)L NL UK
I.CURRENT TRANSACTIONS 922.3 1550.9 179.8 541.1 1611.4 1300.0 4.911 223.3 59.8 91.27
A. Social protection benefits 881.4 1471.4 175.0 522.4 1533.9 1239.0 4.716 208.7 57.5 136.2 87.89
1. Health 317.6 490.1 57.3 210.6 512.9 245.0 1.512 85.2 25.1 57.4 26.59
1.1. Sickness 318.2 37.4 141.3 386.1 155.0 1.184 41.0 14.3 31.9 17.59
1.2. Invalidity,, disability 88.6 137.9 18.7 52.5 83.7 65.0 0.302 37.8 8.5 25.5 8.26
1.3. Occupational accidents and  
diseases  
2. Old age20.4
298.834.0
395.81.2 
64.116.8 
151.043.1
540.425.0
840.00.026
1.1776.4
77.62.3
15.7 38.70.74
35.63
3. Survivors 74.1 174.3 0.2 74.1 110.0 58.0 0.347 22.6 9.5 4.9 1.51
4„ Maternity/Family 77.8 129.6 18.0 33.7 156.2 36.0 0.583 15.8 4.7 13.7 9.97
4.1. Maternity 8.9 6.4 2.9 5.1 24.4 6.0 0.109 1.5 0.9 0.5 1.20
4.2. Family 67.9 123.2 15.1 28.5 131.8 30.0 0.474 14.3 3.8 13.2 8.76
5. Employment 80.5 258.7 23.9 35.2 149.9 22.0 0.784 7.2 2.3 17.1 9.88
5.1. Placement, vocational  
guidance, resettlement
5.2. Unemployment10.4
70.142.2
216.51.2
22.77.4
27.96.3
143.6 22.00.163
0.6210.2
6.90.1
2.2 17.11.72
8.16
6. Housing 14.9 - 4.9 4.8 35.3 10.0 0.241 0.1 0 .0 2.1 3.23
7. Miscellaneous 10.4 22.9 6.7 13.1 29.2 28.0 0.072 0.4 0.2 2.2 1.07
B. Administration costs 32.4 73.0 4.8 14.4 62.6 38.0 0.189 8.9 1.9 5.33.32
C. Other current expenditure8.66.5 - 4.3 14.9 23.0 0.006 5.7 0.4 0.40.06
IICAPITAL TRANSACTIONS n.a n.a n.a n.a n.a 0.068 3.3 n.a - n.a
IIISOCIAL PROTECTION EXPENDITURE 4.979 226.6 147.7
(i) Excluding fiscal benefits
C3
tn

APPENDIX B
ECONOMIC ASSUMPTIONS

table B  - 1  i E conom ic Assumptions 1 9 8 2  - 198?
E U RB DK D F GR IRL I L NL UK
t J D P( M r d .  n a t -  c u r r e n c y )
. 1982 2455.0 3849.5 467 1597.9 3569.3 2517.9 12.989 471390 154 368.86 283.6
.  1987 3413.2 5509.7 6801 8 9 6 .35513.9 6223.3 20.798 889041 220 436.5 398.5
E x c h a n g e  r a t e s  ( E C U )
. 1982 44.711 8.1569 2.3760 6.4312 65.342 0.6896 1323.8 44.711 2.6139 0.5605
. .  1985 
(Aug-28)45.090 8.1013 2.2261 6.7974 105.985 0.7150 1495.95 45.090 2.5069 0.5733
P u r c h a s i n g  P a r i t y  S t a n ­d a r d s
. 1982 40.011 8.833 2.506 6.404 51.077 0.615 1018.130 39.534 2.746 0.567
, 1987 
(1984)40.064 8.830 2.367 6.791 64.595 '0.650 1179.674 40.519 2.547 0.559
P r i c e  d e f l a t o r  G D P  ( a n n u a l  a v e r a g e  . 1 9 8 2-1 9 8 7) 5.5 4.7 2.8 8.0 15.8 8.0 11.6 6.3 2.5 5.1
U n e m p l o y m e n t  r a t e
..1982 13.0 9.5 6.8 8.7 (1.4) 12.2 9.7 1.3 11.7 10.6 j
. 1987 16.3 8.5 8.0 12.2 9.7 19.3 13.7 1 .716.8 11.5 J
O
- ’P

APPENDIX C
"Social benefits" and "Social protection benefits"
Is there a  difference?
T h e term  "Social benefits" in C o m m u n ity  statistics of national 
accounts is a  heading in the "Distribution of Incom e Account" of the European 
system of integrated econom ic accounts (E SA ), w hich records all transactions 
relating to the production process an d  the generation of incom e, the
distribution an d  redistribution of incom e an d  its allocation betw een final
consumption a t ^ t j l ^  saving, as well as capital formation and lending or borrowing 
the C o m m u n ity
In national accounts, goods and services are recorded in widely 
differing w ay s depending o n  the type of econom ic unit w hich co n su m e them . In a
given country, if a  private individual consi^l^s a  doctor, buys medicines o n  a
prescription and then claims reimbursement for his expenditure from  the 
responsible social security institution, the service provided b y  the doctor an d  
the goods represented b y  the medicines are described as "market" goods an d  
services, and as such are regarded as having been consum ed b y  th^^sick person; 
accordingly, they c o m e  under the aggregates "Social benefits" and "Final 
consumption of households". O n  the other hand, in a  neighbouring country with a  
national health service w hich provides the sick person with a  medical consult­
ation and medicines free of charge, the reasoning adopted is as follows :  
since the doctor is remunerated and the medicines are purchased b y  a  general 
governm ent department, the latter becom es the consum er of the goods an d  the 
service, the cost of w hich then co m es under the aggregate "general governm ent 
consumption" :  at the sam e time, these general governm ent departments set them ­
selves u p  as producers of "Health services" w hich in the final analysis accrue 
to the sick person but which, since they are "non-market" services, cannot b e 
regarded as "Social benefits".
O f course, for the sick person these accounting distinctions are 
meaningless :  he is treated b y  the sam e m eans - a  doctor an d  medicines - regard­
less of the m anner in w hich the former is remunerated or the latter purchased.
T h e  fact that goods are always of the "market" type m ean s that :
(a) social benefits other than cash benefits include goods, and market services 
only;
(1) See E U R O S T A T  "National Accounts E S A "  for definitions.
(2) It does net matter whether the reimbursement is total or partial (i.e. 
whether or not the insured person pays part of the cost of treatment).
(3) In order to be classified under "Social benefits", benefits in kind (goods 
and services) m ust always be of the "market" type.
(4) In fact, in all countries - even those without a  national health service -
there are goods and services w hich belong to both categories. T h e
distinction m a d e  betw een these categories is justified solely b y  the 
classification, definition, relations betw een sectors, etc. used b y  econom ic 
accounting systems as needs dictate.

(b) other benefits in the fo rm  of goods and services provided b y  the social 
protection system  include goods, m arket services an d  all non-m arket 
servi ces.
"Social protection benefits", o n  the other hand, are defined to 
m easure w hat the person or beneficiary receives - for example, medical care or 
medicines - irrespective of the conventional econom ic description of the m ethods 
in w hich such goods or services are delivered. It covers a  w ider field than the 
narrow definition of "Social benefits", b y  including "Other benefits in the fo rm  
of goods and services". It will thus result in higher figures than those in a n  
apparently similar heading in the econom ic accounts.
T h e  definition, even though it m a y  seem  open to the accusation of 
"exaggerating" the am ounts spent o n  the social services, does have the advantage 
of providing m o re com parable figures, in particular betw een countries with a  
national health service and those without.

APPENDIX D
Extract from  "  European system of integrated social protection 
statistics "  M ethodology - Part 1, published in 1 9 8 1  b y E U R O S T A T
B -SO C IA L  P R O T E C T IO N  F U N C T IO N S  -  C O N T E N T
Sickness function
5 1 1 . Sickness  m u st b e  u n d ersto o d  i n  th e  s tric t sen se a s a  m o re  o r le s s  d e e p -se a te d  a lte ra tio n  i n  th e
h e a lth  o f th e  in d iv id u a l, a ffe c tin g  h is  p h y s ic a l o r m e n ta l h e a lth  i n  g e n e ra l.
5 1 2 . T h is  fu n c tio n  in c lu d e s :
( a )  a llo w a n c e s in te n d e d  a s to ta l o r p a r tia l c o m p en satio n  fo r th e  lo s s  o f in c o m e  re s u ltin g  fro m  th e  
su sp e n sio n  o f a n  o c c u p a tio n ;
( b )  p ay m e n ts to  a l l  p ro te c te d  p e rso n s e q u iv a le n t to  a l l  o r p a rt o f th e co st o f m e d ic a l care1  o r a  p re ­
v e n tiv e  o r th e ra p e u tic  n a tu re ; w ith  re g a rd  to  p re v e n tio n , th e m a in  a re a s c o v e re d  a re  m e d ic a l 
c h e c k -u p s, v a c c in a tio n  ca m p a ig n s, h e a lth  e d u c a tio n , p re v e n tiv e  m e a su re s, e tc .;
( c )  e x p e n d itu re  o f p u b lic  h e a lth  s e rv ic e s , in s o fa r a s i t  re la te s  to  a llo w a n c e s o r m e d ic a l c a re ;
( d )  o th e r fo rm s o f s o c ia l assista n c e  r e la te d  to  s ic k n e s s .
5 1 3 . T h e  f o llo w in g  a re  e x c lu d e d :
( a )  m e d ic a l c a re  g iv e n  to  a n  in v a lid  o r a  d is a b le d  p e rso n  (h a n d ic a p p e d  p e rso n , e tc .) a s s p e c if ic  
treatm en t fo r th e ir in v a lid ity  o r d is a b ility , i.e . i n  d ire c t r e la tio n  to  th e p a rtic u la r c o n d itio n  o f  th e  
p e rso n  co n cern ed ;2
( b )  m e d ic a l c a re  g iv e n  to  v ic tim s  o f  o c c u p a tio n a l ac c id e n ts o r w o rk e rs s u ffe rin g  fro m  o c c u p a tio n a l 
d ise a se s, i n  so  f a r a s th is  c a re  i s  d ir e c tly  re la te d  to  th e  in ju r y  o r d ise a se  i n  q u e stio n ;3
( c )  p re n a ta l, o b s te tric a l an d  p o stn a ta l m e d ic a l c a re ;4
( d  )  m e d ic a l c a re  g iv e n  to  c o n sc rip te d  m ilita r y  p e rso n n e l d u rin g  th e ir c o m p u lso ry  m ilita r y  se rv ic e ;5
( e  )  a n y  p a y m e n ts m ad e to  su p p lem en t a llo w a n c e s g ra n te d  o n  acco u n t o f f a m ily  re s p o n s ib ilitie s .6
1  Medical care includes the following goods and services:
(a) services provided by doctors (general practitioners or specialists) and other medical personnel, within or outside establishments (in out-patients'  
departments, surgeries, and at home);
(b) stays in hospitals: medical treatment and maintenance;
(c) dental care;
(d) medicines and prostheses: medicines and pharmaceutical products, optical appliances (spectacles, lenses) and hearing aids, orthopaedic pro­
ducts and prostheses, dental products and prostheses;
le) other medical services: laboratory analyses, radiological and electro-physical examinations, hydrotherapy, salt-water and sea-air cures, functional  
rehabilitation, transport o* sick persons, health education and disease prevention campaigns, vaccinations and immunizations, etc.
2 These benefits are classified under the 'Invalidity/disability' function.
3 These benefits are classified under the function 'Occupational accidents and diseases'.
4 These benefits are classified under the function 'Maternity''.
5 The cost of this care is not regarded as expenditure by the social protection system.
6 These payments are classified under the function 'Family'.

514-518
Invalidity / Disability function
5 1 4 . In v a tid ity /d isa b ility  (p h y sic a l o r m en tal) is  the in a b ility  to  engage i n  an y  a c tiv ity  to  an  ex ten t p re­
scrib ed , orto lead  a  n o rm al so c ia l l i f e , w h ich  in a b ility  i s  lik e ly  to  b e perm anent o r p ersists beyond 
a  lim ite d  p erio d , such as m ay be d efin ed  in  le g isla tio n  co v erin g  insu ran ce against sic k n ess. I t  can  
b e  co n g en ital o r the resu lt o f a  disease (w ith  the ex cep tio n  o f o ccu p atio n al d iseases), o f an  
accid en t (w ith  the ex cep tio n  o f o ccupational accid en ts), o r o f a  p o litic a l e v e n t.
Comment
T h e  ab o v e  e x c lu s io n s  (o c c u p a tio n a l a c c id e n ts a n d  d ise a se s) a p p ly  o n ly  to  c a se s w h e re  th e b e n e fit 
i s  g ra n te d  u n d e r c o n d itio n s  ( le g a l o r o th e r k in d s ) w h ic h  m a k e  e x p lic it re fe re n c e  to  th ese tw o  r is k s .
5 1 5 . T h is  fu n c tio n  c o v e rs th e fo llo w in g :
( a )  p e n sio n s, a llo w a n c e s a n d  o th er c a sh  b e n e fits g ra n te d  to  in v a lid s  a n d  d is a b le d  p e rso n s b e c a u se  
o f th e ir c o n d itio n ;
( b )  re m u n e ra tio n  p a id  to  d is a b le d  p e rso n s w h en  th e y  en g ag e i n  a n  o c c u p a tio n  ad a p te d  to  th e ir  
h a n d ic a p  i n  s h e lte re d  w o rk sh o p s;
( c )  th e  s p e c ific  m e d ic a l c a re  g ra n te d  to  in v a lid s  o r d is a b le d  p e rso n s a s a  re s u lt o f th e ir c o n d itio n ;
( d  )  th e fu n c tio n a l, o c c u p a tio n a l a n d  s o c ia l r e h a b ilita tio n  o f  in v a lid s  a n d  d is a b le d  p e rs o n s ;
( e )  o th e r fo rm s o f s o c ia l assista n c e  p ro v id e d  fo r in v a lid s  a n d  d is a b le d  p e rso n s.
5 1 6 . T h e  fo llo w in g  a re  e x c lu d e d :
( a  )  th e  m e d ic a l care1  g ra n te d  to  m em b ers o f  th e f a m ily  o f  in v a lid s  a n d  d is a b le d  p e rso n s;2  3
( b )  th e p e n s io n s, a llo w a n c e s, fu n e ra l ex p e n ses a n d  d e a th  g ra n ts p a id  to  th e  s u r v iv in g  d ep en d an ts 
o f in v a lid s  a n d  d is a b le d  p erso n s*
( c )  a l l  in c re a se s i n  p e n sio n s, a llo w a n c e s , e tc ., g ra n te d  o n  acco u n t o f f a m ily  r e s p o n s ib ilitie s .4  
Occupational Accidents and diseases function
5 1 7 . A n  occupational accident  i s  a n  ac c id e n t w h ic h  o c c u rs i n  th e  p ro c e ss o r w o rk , o r d u rin g  w o rk , o r  
w h ile  tr a v e llin g  b etw e en  h o m e an d  w o rk .
A n  occupational disease  i s  o n e so  d e fin e d  b y  n a tio n a l le g is la tio n .
5 1 8 . T h is  fu n c tio n  c o v e rs th e fo llo w in g  c a te g o rie s :
( a )  p e n sio n s, a llo w a n c e s, co m p e n sa tio n  p ay m en ts an d  o th e r ca sh  b e n e fits  g ra n te d  to  th e  v ic tim s ;
( b )  th e  s p e c ific  m e d ic a l care1  g ra n te d  to  v ic tim s  o n  acco u n t o f th e ir  c o n d itio n ; th is  in c lu d e s  i n  p a r ti­
c u la r th e s u p p ly , re p a ir an d  re p la c e m e n t o f p ro sth eses o r o rth o p a e d ic  a p p lia n c e s  re q u ire d  a s a  
re s u lt o f th e a c c id e n t;
( c )  th e  fu n c tio n a l, o c c u p a tio n a l a n d  s o c ia l r e h a b ilita tio n  o f v ic tim s ;
1  See the first footnote under the function 'Sickness'.
2 These benefits are classified under the function 'Sickness'.
3 These benefits are classified under the function 'Survivors'.
4 These increases are Classified under the function 'Family'.

519-524
td ) a c c id e n t p re v e n tio n  ( lim ite d  to  e x p e n d itu re  m ad e b y  th e  in s u ra n c e , p ro v id e n t a n d  s o c ia l s e c u rity  
o rg a n iz a tio n s );
(e )  o th e r fo rm s o f s o c ia l a ssista n c e  fo r v ic tim s .
5 1 9 .  The following are excluded:
( a )  th e m e d ic a l care1  g ra n te d  to  m em b ers o f th e f a m ilie s  o f v ic tim s ;2
( b )  p e n s io n s, a llo w a n c e s , fu n e ra l ex p en ses a n d  d e a th  g ra n ts p a id  to  th e  s u r v iv in g  d ep en d an ts o f  
th e  v ic tim s ;3
( c )  a l l  in c re a s e s  i n  p e n sio n s, a llo w a n c e s , e tc ., g ra n te d  o n  acco u n t o f f a m ily  re s p o n s ib ilitie s .4  5  
O ld-age function
5 2 0 . Old age  i s  d e fin e d  a s th e  sta te  o f h a v in g  re a c h e d  a  c e rta in  m in im u m  a g e , b e y o n d  w h ic h , a s a  r u le , 
o n e's m a in  o c c u p a tio n  m a y  c e a se .
5 2 1 . T h is  fu n c tio n  c o v e rs th e f o llo w in g :
( a )  p e n sio n s, a llo w a n c e s, co m p en satio n  p ay m en ts a n d  o th e r ca sh  b e n e fits p a id  i n  th e  case o f  su r­
v i v a l  b e y o n d  a  p re s c rib e d  a g e ;
(b)  th e  co st o f  s ta y in g  i n  n u rs in g  h o m es fo r th e ag e d  a n d  o ld -p e o p le 's h o m e s;
( c )  p ay m e n ts d e sc rib e d  a s e a r ly  re tire m e n t p e n sio n s a n d  e ffe c te d  i n  acco rd an ce w ith  la w s  o r reg u ­
la tio n s , i n  so  fa r a s th e c r ite r ia  fo r g ra n tin g  th e b e n e fits  in d ic a te  th at th e o b je c tiv e  i s  c o m p le te  
a n d  f in a l re tire m e n t fo r re a so n s o f a g e , i.e . th at th e  m e a su re  ta k e n  m a y  b e  in te rp re te d  a s p a rt 
o f  a  g e n e ra l ten d en cy  to w ard s re d u c in g  th e  u p p e r a g e -lim it fo r e m p lo y m e n t;6
(d)  o th e r fo rm s o f s o c ia l a ssista n c e  fo r o ld  p e o p le : h o m e h e lp s , b e n e fits  i n  k in d , e tc .
5 2 2 . T h is  fu n c tio n  e x c lu d e s:
( a )  m e d ic a l care1  g iv e n  to  o ld  p e o p le ;2
(b)  a l l  in c re a s e s  i n  p e n sio n s, e tc . g ra n te d  o n  acco u n t o f f a m ily  re s p o n s ib ilitie s .4  
S urvivors function
5 2 3 . A  s u rv iv o r's  b e n e fit i s  a  b e n e fit g ran ted  o n  th e  b a s is  o f a  d e riv e d  r ig h t, i.e . a  rig h t o r ig in a lly  a c q u ir­
e d  b y  an o th er p e rso n  w h o se d eath  i s  a  c o n d itio n  fo r g ra n tin g  th e b e n e fit. H o w e v e r, c e rta in  in s u r­
an c e o rg a n iz a tio n s  treat th is  rig h t as a  d ire c t o n e , i.e . th e re  i s  n o  c o n n e c tio n  b etw een  th e  b e n e fit 
re c e iv e d  a n d  th at w h ic h  th e d eceased  m em b er o f th e f a m ily  w o u ld  h a v e  b ee n  a b le  to  c la im .
5 2 4 . S u rv iv o rs  i n  re c e ip t o f b e n e fit m a y  b e  th e sp o u se o r e x -sp o u se  o f th e d eceased  p e rso n , h is  o r h e r 
c h ild re n , g ra n d c h ild re n , ascen d an ts o r r e la tiv e s . I n  e x c e p tio n a l cases (e .g . fu n e ra l e x p e n se s), th e  
b e n e fit m ay  b e  p a id  to  a  p e rso n  o u tsid e  th e  f a m ily .
1  See the first footnote under the function 'Sickness'.
2 These benefits are classified under the function 'Sickness'.
3 These benefits are classified under the function 'Survivors'.
4 These increases are classified under the function 'Family'.
5 These remarks are designed so that benefits may be classified under the functions 'Old age' or 'Unemployment' as appropriate.

525-530
5 2 5 . T h is  fu n c tio n  c o v e rs :
( a )  p e n sio n s, c o m p en satio n  p ay m en ts a n d  o th e r ca sh  b e n e fits  p a id  o u t to  s u rv iv o rs  in  th e ir c a p a c ity  
a s r e la tiv e s  o f  th e  d eceased  p e rs o n ;
( b  )  p e n sio n s re v e rtin g  to  n e x t- o f -k in ;
( c  )  d ea th  g ra n ts, fu n e ra l e x p e n ses, e tc .
5 2 6 . T h e  f o llo w in g  a re  e x c lu d e d :
( a )  m e d ic a l care1  g iv e n  to  s u rv iv o rs ;2
( b  )  a n y  in c re a se s i n  p e n sio n s, e tc ., g ra n te d  o n  acco u n t o f f a m ily  re s p o n s ib ilitie s .3  
M aternity function
5 2 7 . T h e  maternity  fu n c tio n  in c lu d e s  a l l  b e n e fits  aw a rd ed  to  c o v e r e x p e n d itu re  r e s u ltin g  fro m  p re g n a n c y  
an d  c h ild b ir th  ( l i v e  o r s t i l l  b irth s ), as w e ll as th o se o f a  s im ila r  n a tu re  w h ic h  a re  g ra n te d  i n  th e  c a se  
e ith e r o f a b o rtio n  o r o f a d o p tio n .
5 2 8 . T h is  fu n c tio n  in c lu d e s :
( a )  a llo w a n c e s ( in c lu d in g , w h ere a p p ro p ria te , c o n tin u e d  p a y m e n t o f w ag es a n d  s a la r ie s )  in te n d e d  
to  o ffs e t i n  w h o le  o r i n  p a rt th e  lo s s  o f in c o m e  re s u ltin g  fro m  th e su sp e n sio n  o f  o n e's o ccupa­
tio n  a s a  re s u lt o f p re g n an c y  an d  c o n fin e m e n t;
( b )  s p e c ia l a llo w a n c e s w h ic h  m ay  b e  g ra n te d  e ith e r d u rin g  p re g n a n c y  o r a fte r c h ild b ir th , i n  so  fa r a s 
th ey  a re  co n n ected  w ith  th is  ev en t ( e . g . fo r p re n a ta l o r p o stn a ta l e x a m in a tio n s );
( c )  fla t-ra te  a llo w a n c e s p a id  o n  th e  b ir th  o f th e c h ild ;
( d  )  th e m e d ic a l care1  g iv e n :
1  )  to  th e ex p ectan t m o th er d u rin g  p re g n a n c y ,
2 ) d u rin g  c o n fin e m e n t,
3 )  to  th e m o th er an d  c h ild  a fte r th e b ir th  a n d  u p  to  th e  tim e  th e y  le a v e  th e  c lin ic , i n  so  fa r a s 
th e c a re  h as b ee n  g iv e n  i n  an  e s ta b lish m e n t, o r fo r an  e q u iv a le n t p e rio d  ( a p p ro x im a te ly  o n e  
w eek  i n  m o st c a se s) w h en  th e c o n fin e m e n t ta k e s p la c e  at h o m e ;
( e )  o th er fo rm s o f s o c ia l a ssista n c e  g iv e n  to  ex p ectan t m o th e rs o r m o th ers o f  n ew b o rn  c h ild r e n .
5 2 9 . T h is  fu n c tio n  d o es n o t in c lu d e  m e d ic a l care1  g iv e n  b e y o n d  th e p e rio d  in d ic a te d  ab o v e .2  
F am ily  function
5 3 0 . T h e  family  fu n c tio n  in c lu d e s  a l l  b e n e fits g ra n te d  w ith  a  v ie w  to  c o v e rin g  c o sts in c u rre d  i n  th e  
b rin g in g -u p  o f c h ild re n , a n d  p o s s ib ly , i f  re le v a n t p ro v is io n s  a re  c o n ta in e d  i n  n a tio n a l le g is la tio n , c a re  
o f o th e r m em b ers o f th e f a m ily  (sp o u s e , ascen d an t, e tc .) .
1 See the first footnote u n d e r the function 'Sickness'.
2 These benefits are classified under the function 'Sickness'.
3 These increases are classified under the function 'Family'.

531-534
531. T h is  fu n c tio n  in c lu d e s :
( a )  fa m ily  a llo w a n c e s ;
( b )  a llo w a n c e s , co m p e n sa tio n  p ay m e n ts a n d  o th e r ca sh  b e n e fits  g ra n te d  f o r d ep en d en t c h ild r e n  o r , 
i f  re le v a n t p ro v is io n s  a re  c o n ta in e d  i n  n a tio n a l le g is la tio n , fo r o th e r m em b ers o f  th e fa m i y ,
( c )  su p p le m e n ta ry  p ay m en ts fo r c h ild r e n  w h ere th e le g a l b a s is  fo r th ese b e n e fits  i s  th e c o v e r o f  
a n o th e r r i s k  (s ic k n e s s , i n v a lid ity , e tc .) ;
( d )  su p p ly  o f  fo o d , c lo th in g , h o lid a y  ac co m m o d atio n  a n d  a ssista n c e , i n  p a rtic u la r h o u se h o ld  a s s i­
sta n ce ( u n le s s  i t  i s  d ir e c tly  r e la te d  to  th e  'E d u c a tio n ' fu n c tio n );
( e )  e x p e n d itu re  i n  th e  f ie ld  o f f a m ily  p la n n in g ;
( f  )  o th e r fo rm s o f  s o c ia l a ssista n c e  fo r c h ild re n  a n d  th e  f a m ily .
P la c e m e n t, v o c a t io n a l g u id a n c e  a n d  r e s e t t le m e n t  fu n c tio n  (now : "Promotion of
em ploym ent")5 3 2 . T h is  fu n c tio n  in c lu d e s :
( a )  a d m in is tra tiv e  co sts (c o m p e n sa tio n  o f e m p lo y e e s, p u rch ases o f g o o d s a n d  s e rv ic e s ) in c u rre d  b y  
p la c e m e n t o r  v o c a tio n a l g u id a n c e  o f f ic e s ;
( b )  re m o v a l a n d  in s ta lla tio n  a llo w a n c e s fo r u n e m p lo y e d  p e rso n s w h o  h a v e  a g re e d  to  m o v e  h o u se  
a n d  w o rk  i n  an o th er re g io n ;
( c )  p ay m en ts c o m p en satin g  fo r lo s s  o f e a rn in g s d u e to  ab sen ce fro m  w o rk  i n  o rd e r to  r e c e iv e  v o ca­
tio n a l tra in in g .1  2
533. This function excludes:
( a )  th e  a d m in is tra tiv e  c o sts o f  th e  a g e n c ie s s u p e rv is in g  p la c e m e n t o f f ic e s ;
( b )  d ire c t p ay m en ts fro m  e m p lo y e rs n o t g iv in g  r is e  to  a  g e n e ra l g o v ern m en t su b s id y  i n  com p en sa­
tio n ;
( c )  th e d ire c t co st o f  v o c a tio n a l tra in in g  (re m u n e ra tio n  o f tra in in g  s ta ff, su p p ly  o f te a c h in g  m ate­
r i a l s , e tc .) ;
( d )  s u b s id ie s  p a id  b y  th e  p u b lic  a u th o ritie s  to  e n te rp rise s i n  o rd e r to  en c o u ra g e th e la tte r to  r e ta in  
th e ir e m p lo y e e s.
Unem ploym ent function ___  —
53
4· T his function includes all benefits designed to provide s o m e  in co m e for 
protected persons w h o  have lost part or all of their w ag es or salary as 
a  result of u n em ploym ent \
1  These payments may be made directly to beneficiaries by a general government agency. They may also be made by the employer himself (in an
enterprise) but in this case there must be a compensatory payment from the public authorities given in the form of a subsidy.
2 With the exception of removal and installation allowances for unemployed persons who have agreed to move house and work in another region. 
These benefits are classified under the function 'Placement, vocational guidance, resettlement’.

535-538
535. This function includes:
a) basic or com pensatory unem p lo y m en t benefits;
b ) allowances for short-time w o rk in g ^  for operational, technical or
econom ic reason:;; /
c) allowances f o r -  short-time w orking resulting fro m  b ad  weather;
d ) redundancy paym ents;
e) other expenditure to the benefit of unem ployed persons.
535a. This function does not include:
a) m edical sja re given to unem ployed persons an d  -m e m b e rs  of their 
families
b ) rem oval expenses a n d  installation allowance for unem ployed ^
persons w h o  have agreed to m o v e  house an d  w o rk  in another region
c) various paym ents m ad e, under specific conditions, to the elderly 
unem ployed
Housing function
5 3 6 . T h is  fu n c tio n  in c lu d e s  p ay m en ts m ad e b y  g e n e ra l g o v ern m en t o n  b e h a lf o f c e rta in  c a te g o rie s o f  
h o u se h o ld s —  i n  p a r tic u la r , th o se w ith  lim ite d  m ean s —  i n  o rd e r to  h e lp  to  p a y  f o r th e  u s e  o f  th e ir  
a c c o m m o d atio n .
I t  c o v e rs :
( a )  c a sh  b e n e fits  p a id  d ir e c tly  to  h o u se h o ld s (te n a n ts o r  o w n e rs );
( b )  su b s id ie s  p a id  to  p r iv a te  o w n ers o r to  p u b lic  b o d ie s  w h ic h  o w n  h o u sin g , i n  so  fa r  a s th e y  a re  
e x p re s s ly  in te n d e d  to  co m p en sate fo r a  lo s s  o f in c o m e  d u e to  th e im p o s itio n  o f re d u c e d  re n ts  
o n  b e h a lf o f ten an t h o u se h o ld s.
5 3 7 . T h is  fu n c tio n  d o es n o t in c lu d e  a l l  th o se g e n e ra l m easu res (e v e n  i f  th ey  a re  o rg a n iz e d  b y  g e n e ra l 
g o v ern m en t b o d ie s ) a im e d  p r in c ip a lly  at e n c o u ra g in g  b u ild in g  c o n stru c tio n , su c h  a s b u ild in g  su b si­
d ie s , b o n u s p ay m en ts o n  s a v in g s fo r h o u sin g  p u rp o se s, su b s id ie s in te n d e d  to  co m p e n sa te  f o r  
re d u c tio n s i n  th e  in te re s t ra te s o n  b u ild in g  lo a n s , e tc .
Miscellaneous function
5 3 8 . T h is  fu n c tio n  in c lu d e s :
( a )  b e n e fits  w h ic h , a s th e y  a re  lin k e d  to  s e v e ra l o th e r fu n c tio n s at th e sam e tim e , c a n n o t b e  a llo c a t­
e d  to  a n y  o n e o f  th ese fu n c tio n s, e v e n  a s e s tim a te s;
These benefits are classified under the Sickness function
These benefits are classified under the Promotion of employment function
These benefits are classified under the Old Age function

539
( b )  b e n e fits  r e la tin g  to  a re a s o th e r th an  th o se c o v e re d  b y  th e o th e r fu n c tio n s b u t w h o se p u rp o se s
a re  s im ila r  to  th o se o f  s o c ia l p ro te c tio n  i n  th e  w id e  s e n se :
1  )  a ssista n c e  fo r d e stitu te  p e rso n s, i n  so  f a r a s th e  c o n tin g e n c y  re s p o n s ib le  f o r th e ir  la c k  o f  
re so u rc e s can n o t b e  c la s s if ie d  u n d e r a n o th er fu n c tio n  ( o l d  a g e , f a m ily , e tc .) ;
2 )  e x p e n d itu re  e ffe c te d  i n  th e  co n te x t o f s o c ia l a ssista n c e  m e a su re s a im e d  at c o m b a tin g  
p o v e rty ;
3 )  e x p e n d itu re  o n  b e h a lf o f  c h ild r e n  a n d  o f ju v e n ile  d e lin q u e n ts ( re in te g r a tio n , e tc .) , w ith  th e  
e x c e p tio n  o f e d u c a tio n a l m e a su re s;
4 )  c o m p e n sa tio n  p ay m en ts a n d  o th e r b e n e fits  i n  cash  o r i n  k in d  n o t c la s s if ie d  e ls e w h e re , f o r 
v ic tim s  o f  p o litic a l ev e n ts o r n a tu ra l d is a s te rs ;
5) legal aid and assistance to victims of criminal violence;
6 )  o th e r fo rm s o f  s o c ia l a ssista n c e  f o r p e rso n s w ith o u t m e a n s, th e  h o m e le ss a n d  th e s o c ia lly  
h a n d ic a p p e d  (d ru g  a d d ic ts , e tc .) .
N. B. —  This is a limitative enumeration.
C -G R O U P IN G  O F  F U N C T IO N S
5 3 9 . I n  th e  case o f  c e rta in  n ee d s th e re  m a y  b e  n o  p o in t i n  m a k in g  tw o -d ig it b re a k d o w n  o f  th e  b e n e fits , 
a s ap p e a rs i n  T a b le  D .  A  le s s  d e ta ile d  s u b d iv is io n  i s  a c c o rd in g ly  p ro v id e d  f o r , u s in g  th e o n e -d ig it 
h e a d in g s a n d  c o n ta in in g  o n ly  th e  fo llo w in g  b ro a d  a re a s : h e a lth , o ld  ag e , s u r v iv o rs , m a te rn ity /fa m i- 
....... |y ,  e m p lo y m e n t, h o u sin g  an d  m is c e lla n e o u s  ite m s .
L|
 b

APPENDIX E
R E T I R E M E N T  A G E S  used in the calculation of 
benefits per person (Table 3.9)
M e n  W o m e n
B elgium  6 5  6 0
D en m a rk  (legal age 67) 6 5  6 5
Federal Republic of G erm an y  6 5  6 5
France 6 0  6 0
Greece 6 5  6 0
Ireland 6 5  6 5
Italy 6 0  5 5
L uxem bourg 6 5  6 5
Netherlands 6 5  6 5
United K in g d o m  6 5  6 0