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    Home » EU social benefits spending rises 4.9% to €5,183 billion
    Business

    EU social benefits spending rises 4.9% to €5,183 billion

    November 7, 2026
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    BRUSSELS, Belgium / EuroWire.IO / – Total expenditure on social protection benefits in the European Union reached €5,183 billion in 2025, an increase of 4.9% compared with 2024, according to Eurostat. Social protection benefits represented 27.5% of the EU’s gross domestic product, down 0.2 percentage points from the previous year. The EU statistical office published the preliminary figures on November 6. Spending rose by about €240 billion in a year.

    Giant euro sign sculpture with yellow stars beside glass towers, illustrating EU social benefits
    EU social benefits reach €5,183bn in 2025. (AI-generated image)

    Among EU countries, social protection benefits expenditure as a share of GDP was highest in Austria, at 32.4%, followed by Finland at 32.2% and France at 32.1%. It was lowest in Ireland, at 11.7%, Malta at 13.8% and Hungary at 16.7%. Ireland’s figure partly reflects its high GDP, which is boosted by the activities of multinational companies. The gap between the highest and lowest spenders was more than 20 percentage points.

    Old-age benefits accounted for the largest share of spending, at €2,152 billion, or 41.5% of the total. Sickness and health care benefits followed with €1,556 billion, or 30.0%. Together, these two categories made up more than 70% of all social protection benefits in the EU. They totalled €3,708 billion. Other categories included disability, survivors, family and children, unemployment, housing and social exclusion not classified elsewhere.

    Spending rises in every member state

    Social protection benefits expenditure in euro terms increased in all EU countries in 2025. No member state recorded a decline. The largest increases compared with 2024 were recorded in Croatia, at 15.4%, Bulgaria, at 12.1%, and Lithuania, at 11.6%. The smallest increases were in Greece, at 0.6%, Romania, at 0.7%, and Finland, at 1.3%. Cyprus increased spending by 5.1% to €6.59 billion, or 18.07% of GDP, Cyprus Mail reported.

    Because total spending rose by 4.9% while its share of GDP fell, nominal economic output in the EU grew faster than social benefits expenditure in 2025. The figures are preliminary estimates and may be revised. An earlier Eurostat estimate had put 2024 spending at about €4,925 billion before revisions. The 2024 base has since been revised. Euro area GDP grew by 0.4% in the third quarter of 2026, a recent flash estimate showed.

    Old-age benefits dominate spending

    Old-age benefits, mainly pensions, remain the biggest item in social protection budgets across the EU. Sickness and health care spending covers benefits such as medical treatment and paid sick leave. Family and child benefits, unemployment support and housing assistance account for smaller shares. Disability benefits support people unable to work because of illness or impairment. Eurostat compiles the data under the European system of integrated social protection statistics, known as ESSPROS.

    The European Commission has pledged to strengthen Europe’s social model in its 2027 work programme, adopted on November 4. The programme also focuses on competitiveness, simplification and support for Ukraine. Austria, Finland and France have consistently been among the EU’s highest spenders on social protection. Spending on social benefits varies widely across the bloc. Social protection systems are funded by social contributions from employers and workers as well as general government revenues.

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