FIRST RELEASE

CROATIAN BUREAU OF STATISTICS
10000 ZAGREB, ILICA 3, PHONE: +385 1 4806-111, P.O.B. 80, CROATIA

ISSN 1334-0565

 

YEAR: XLVI.

ZAGREB, 15 DECEMBER, 2009

NUMBER: 12.1.6.

 

 

OBLIGED TO NOTIFY DATA SOURCE

 

 

EXPENDITURES AND RECEIPTS OF SOCIAL PROTECTION

2003 – 2007 (SATELLITE ACCOUNT)

 

 

This release presents data on social protection in the Republic of Croatia for the period from 2003 to 2007. For the first time, data were collected in accordance with the ESSPROS Manual, on the basis of the Eurostat methodological framework: "ESPROSS Manual and User Guidelines".

 

The aim of collecting data on expenditures and receipts of schemes is to provide a comprehensive analysis of the social protection, to achieve harmonisation with other countries and to enable an international comparability.

 

During the mentioned period, there was a continuous growth of the total expenditures and the total receipts of the social protection recorded in the Republic of Croatia, but their share in the GDP has been diminishing over the years. The largest decrease in the total expenditures was recorded in 2005 (-0.7% as compared to 2004) and the largest decrease in the total receipts was recorded in 2004 (-0.8% as compared to 2003).

 

The greatest part of the total expenditures included the social protection compensations with the share of more than 95%, within which compensations for sickness and health care, disability and old age made 75% of the total compensations.

 

The total number of pension beneficiaries comprised the old-age pension beneficiaries, with the share of more than 50% of all beneficiaries, and the rest of beneficiaries, divided to disability pension beneficiaries and survival pension beneficiaries, who had almost the same ratio.

 

The breakdown of the number of pension beneficiaries by sex leads to the conclusion that old-age pensions were equally distributed between women and men, while among the disability pension beneficiaries there were more men (2:1 ratio). More than 80% of women made the total number of survival pension beneficiaries and they belonged to the category Survivors.

 


1.   EXPENDITURE AND RECEIPTS OF SOCIAL PROTECTION SCHEMES

Thousand kuna

 

2003.

2004.

2005.

2006.

2007.

 

 

 

 

 

 

Total expenditure

44 447 144

47 096 459

48 963 406

51 801 161

54 958 228

 

 

 

 

 

 

Social protection benefits

42 967 291

45 736 410

47 559 983

50 068 053

53 228 573

Non means-tested social benefits

40 178 367

42 906 481

44 687 482

47 299 104

49 957 491

Cash social benefits

26 891 942

28 290 257

29 682 511

31 526 654

33 219 270

Periodic cash social benefits

26 835 991

28 251 916

29 619 866

31 241 678

33 148 894

Lump sum cash social benefits

55 951

38 341

62 644

284 976

70 376

Social benefits in kind

13 286 424

14 616 225

15 004 972

15 772 449

16 738 221

Re-routed social contributions between schemes

317

(77)

(77)

394

630

Means-tested social benefits

2 788 924

2 829 929

2 872 500

2 768 949

3 271 082

Cash social benefits

2 495 898

2 486 358

2 504 297

2 387 241

2 877 092

Periodic cash social benefits

2 436 096

2 416 699

2 441 838

2 323 396

2 826 367

Lump sum cash social benefits

59 802

69 660

62 459

63 846

50 725

Social benefits in kind

293 026

343 571

368 203

381 708

393 991

Re-routed social contributions between schemes

…

…

…

…

…

Administration costs

1 399 165

1 255 893

1 288 013

1 613 130

1 604 886

Transfers to other schemes

…

…

…

…

…

Other expenditure

80 689

104 156

115 410

119 978

124 769

 

 

 

 

 

 

 

 

 

 

 

 

Total receipts

44 324 886

45 996 570

48 376 927

51 358 776

55 668 788

 

 

 

 

 

 

Social contributions

13 845 873

14 873 656

15 714 015

16 919 246

18 543 093

General government contributions

28 995 783

30 139 959

31 480 950

33 006 914

35 897 564

Transfers from other schemes

…

…

685 774

1 111 715

443 740

Other receipts

1 483 230

982 955

1 181 963

1 432 617

1 228 132

 


2.   EXPENDITURE ON SOCIAL BENEFITS, BY SOCIAL PROTECTION FUNCTIONS

Thousand kuna

 

2003.

2004.

2005.

2006.

2007.

 

 

 

 

 

 

Total

42 967 291

45 736 410

47 559 983

50 068 053

53 228 573

 

 

 

 

 

 

Sickness/Health care

13 326 962

14 774 211

15 106 029

16 009 667

17 101 534

Disability

6 168 046

6 657 001

7 102 505

7 633 101

8 311 524

Old age

13 437 549

13 991 037

14 617 397

15 366 918

16 000 749

Survivors

4 918 602

5 191 620

5 524 824

5 840 581

6 113 363

Family/Children

2 973 965

2 727 758

2 720 640

2 752 428

3 263 299

Unemployment

1 142 218

1 271 676

1 325 012

1 297 230

1 275 677

Housing

82 619

87 488

91 883

92 796

96 615

Social exclusion not elsewhere classified

917 330

1 035 619

1 071 691

1 075 331

1 065 813

 

 

3.   SOCIAL PROTECTION EXPENDITURE AND EXPENDITURE ON SOCIAL BENEFITS, BY SOCIAL PROTECTION FUNCTIONS,
      SHARE IN GDP1)2)

Share in GDP, %

 

2003.

2004.

2005.

2006.

2007.

 

 

 

 

 

 

Total social protection expenditure

19,6

19,2

18,5

18,1

17,5

Total expenditure for social benefits,
by functions

18,9

18,6

18,0

17,5

16,9

Sickness/Health care

5,9

6,0

5,7

5,6

5,4

Disability

2,7

2,7

2,7

2,7

2,6

Old age

5,9

5,7

5,5

5,4

5,1

Survivors

2,2

2,1

2,1

2,0

1,9

Family/Children

1,3

1,1

1,0

1,0

1,0

Unemployment

0,5

0,5

0,5

0,5

0,4

Housing

0,0

0,0

0,0

0,0

0,0

Social exclusion not elsewhere classified

0,4

0,4

0,4

0,4

0,3

 

 

1)    Data on the gross domestic product have been revised according to new, improved data sources and calculation methods.

2)    Data on the gross domestic product for 2003, 2004 and 2005 are final, while for 2006 and 2007 they are provisional (sum of quarterly data).

 


4.   TOTAL NUMBER OF PENSION BENEFICIARIES WITHOUT DOUBLE COUNTING, BY SOCIAL PROTECTION FUNCTIONS

 

2003.

2004.

2005.

2006.

2007.

 

 

 

 

 

 

Total number of pension beneficiaries

1 062 075

1 071 616

1 086 246

1 105 571

1 121 540

Total number of pension beneficiaries in function Disability

269 966

273 460

277 337

284 936

293 148

Disability pension beneficiaries

269 966

273 460

277 337

284 936

293 148

Beneficiaries receiving early retirement benefits due to reduced
capacity to work

-

-

-

-

-

Total number of pension beneficiaries in function Old age

555 402

558 357

565 753

574 414

580 518

Old-age pension beneficiaries

518 986

516 124

517 211

519 401

525 505

Anticipated old-age pension beneficiaries

36 416

42 233

48 542

55 013

55 013

Partial pension beneficiaries

-

-

-

-

-

Total number of pension beneficiaries in function Survivors

236 707

239 799

243 156

246 221

247 874

 

 

Source: the Croatian Institute for Pension Insurance

 

 

5.   TOTAL NUMBER OF PENSION BENEFICIARIES, BY SOCIAL PROTECTION FUNCTIONS AND BY SEX

 

Total

Disability

Old age

Survivors

Total

Women

Men

Total

Women

Men

Total

Women

Men

 

 

 

 

 

 

 

 

 

 

 

2003.

1 062 075

269 966

90 919

179 047

555 402

268 532

286 870

236 707

195 795

40 912

2004.

1 071 616

273 460

90 628

182 832

558 357

272 047

286 310

239 799

200 539

39 260

2005.

1 086 246

277 337

91 074

186 263

565 753

276 617

289 136

243 156

205 477

37 679

2006.

1 105 571

284 936

92 227

192 709

574 414

281 960

292 454

246 221

213 567

32 654

2007.

1 121 540

293 148

93 557

199 591

580 518

286 830

293 688

247 874

216 821

31 053

 

 

Source: the Croatian Institute for Pension Insurance

 


NOTES ON METHODOLOGY

 

Sources and data collection methods

 

Data on social protection in the Republic of Croatia were collected for the period from 2003 to 2007 in accordance with the ESSPROS Manual.

 

The European System of integrated Social PROtection Statistics (ESSPROS) was developed in the Eurostat jointly with representatives of the EU Member States. The legal basis was proposed as a Regulation of the European Parliament and the Council1), supplemented by Commission Regulations2) implementing the ESSPROS core system, the module on pension beneficiaries and the pilot data collection on net social protection benefits.

 

Coverage and comparability

 

The ESSPROS is a harmonised system that provides a tool for analysis and comparison of financial flows of social protection. The objectives of the ESSPROS are to provide a comprehensive and coherent description of the social protection in the EU Member States and candidate countries for the EU membership, financing of social benefits and creating a system appropriate for international comparability and harmonisation with other statistics.

 

The core system of the ESSPROS consists of a stable, annually collected set of data on the receipts and expenditure of social protection schemes in certain countries.

 

The ESSPROS core system values transactions at current exchange value, that is, the value at which flows and stocks are, or could be, exchanged for cash. Totals for all categories, by years, represent the sum of the values of all individual schemes of social protection.

 

The expenditure of social protection schemes are classified by type, which indicates the nature of, or reason for, the expenditure. At the first level, the ESSPROS distinguishes social protection benefits, administration costs, transfers to other schemes and other expenditures. The social protection benefits are divided into non means-tested social protection benefits and means-tested social protection benefits. Moreover, social protection benefits are classified to cash benefits, benefits in kind and social contributions re-routed between schemes. Cash benefits and benefits in kind can be periodic or lump-sum.

 

The receipts of social protection schemes are classified by type to social contributions, general government contributions, transfers from other schemes and other receipts.

 

Financial flows of some schemes refer to transfers from other schemes. Values of such transfers are recorded as expenditures of a scheme in which they have arisen, that is, as receipts of a scheme which they are paid to, and, therefore, they are not included in the calculation of the total value.

 

The social protection encompasses all interventions from public or private bodies intended to relieve households and individuals of the burden of a defined set of risks or needs, provided that there is neither a simultaneous reciprocal nor an individual arrangement involved.

 

The list of risks or needs that may give rise to social protection is as follows:

            Sickness/Health Care

            Disability

            Old age

            Survivors

            Family/Children

            Unemployment

            Housing

            Social exclusion not elsewhere classified

 

The ESSPROS applies the functional breakdown exclusively to social protection benefits, not to receipts.

 

In addition to the core system, ESSPROS contains a module on pension beneficiaries as well.

 

The module on pension beneficiaries shows the total number of pension beneficiaries throughout the three functions: disability, old-age and survivors as well as by sex.

 

According to the European Parliament and the Council Regulation No. 458/20071), pension beneficiaries are defined as recipients of one or more periodic cash benefits of a social protection scheme without double counting.

 

Each of the pension categories is further divided to non means-tested and means-tested pensions.

 

Definitions and explanations

 

Social protection encompasses all interventions from public or private bodies intended to relieve households and individuals of the burden of a defined set of risks or needs, provided that there is neither a simultaneous reciprocal nor an individual arrangement involved.

 

Social protection benefits are means allocated to users either in cash or kind and services. They comprise of transfers, in cash or in kind, from social protection schemes to households or individuals.

 

 

1)   Regulation (EC) No. 458/2007 of the European Parliament and of the Council of 25 April 2007 on the European system of integrated social protection statistics
      (ESSPROS), published in OJ L113 on 30 April 2007, p. 3.

2)   Commission Regulation (EC) No. 1322/2007 of 12 November 2007 implementing Regulation (EC) No. 458/2007 of the European Parliament and of the Council on the       ESSPROS as regards the appropriate formats for transmission, results to be transmitted and criteria for measuring the quality of the ESSPROS core system and the module on pension beneficiaries, published in OJ L294 on 13 November 2007, p. 5.

      Commission Regulation (EC) No. 10/2008 of 8 January 2008 implementing Regulation (EC) No. 458/2007 of the European Parliament and of the Council on the ESSPROS as regards definitions, detailed classifications and updating of the rules for dissemination for the ESSPROS core system and the module on pension beneficiaries, published in OJ L5 on 9 January 2008, p. 3.


Means-tested social benefits are social benefits which are explicitly or implicitly conditional on the beneficiary's income and/or wealth falling below a specified level.

 

Cash benefits are benefits paid off in cash that do not require evidence of actual expenditure by beneficiaries.

 

Periodic cash benefits are cash benefits paid at regular intervals, such as each week, month or quarter.

 

Lump-sum benefits are cash benefits paid on a single occasion or in the form of a lump sum.

 

Benefits in kind are benefits granted in the form of goods or services that require evidence of actual expenditure by the beneficiaries.

 

Re-routed social contributions are payments that a social protection scheme makes to another scheme in order to maintain or accrue the rights of its protected people to social protection from the recipient scheme.

 

Administration costs means the costs charged to the scheme for management and administration thereof.

 

Transfers to other schemes include unrequited payments made to other social protection schemes.

 

Other expenditure includes miscellaneous expenditure by social protection schemes.

 

Employers' actual social contributions are payments made by employers to insurers to secure entitlement to social benefits for their employees, former employees and their dependants.

 

General government contributions consist of the cost to general government of running government-controlled non-contributory schemes and financial support provided by general government to other resident social protection schemes.

Transfers from other schemes include unrequited payments received from other social protection schemes.

 

Other receipts include miscellaneous current receipts of social protection schemes.

 

Sickness/Health care – means income maintenance and support in cash in connection with physical or mental illness, excluding disability. Health care covers maintenance, restoration or improvement of the health of the people protected, irrespective of the origin of the disorder.

 

Disability – covers income maintenance and support in cash or kind (except health care) in connection with the inability of physically or mentally disabled people to engage in economic and social activities.

 

Old age – includes income maintenance and support in cash or kind (except health care) in connection with old age.

 

Survivors – implies income maintenance and support in cash or kind in connection with the death of a family member.

 

Family/Children – includes support in cash or kind (except health care) in connection with the costs of pregnancy, childbirth and adoption, bringing up children and caring for other family members.

 

Unemployment – implies income maintenance and support in cash or kind in connection with unemployment.

 

Housing – includes help towards the cost of housing.

 

Social exclusion not elsewhere classified includes benefits in cash or kind (except health care) specifically intended to combat social exclusion where they are not covered by one of the other functions.

 

Pension beneficiaries are defined as recipients of one or more periodic cash benefits, but person who receives more than one pension is counted only once – double counting is to be avoided.

 

 

Abbreviations

 

EC                European Commission

ESSPROS    European System of Integrated Social Protection Statistics

EU                European Union

Eurostat       Statistical Office of the European Communities

OJ                Official Journal of the European Communities

 

Symbols

 

-          no occurrence

…        data not available

()         incomplete, inaccurate data

0.0      value not zero but less than 0.5 of the unit of measure used

 

 

This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of the Croatian Bureau of Statistics and can under no circumstances be regarded as reflecting the position of the European Union.