Social security in Sweden 1993–2017

Expenditure on social protection decreased in relation to GDP

Statistical news from Statistics Sweden 2019-03-29 9.30

Social protection expenditures as a share of GDP decreased from 29.6 percent in 2016 to 29.1 percent in 2017. Social protection expenditures in current prices increased, but less compared to the increase of GDP.

In 2017, total expenditures on social protection increased by SEK 31.8 billion, which corresponds to roughly 2.4 percent. The increase in 2017 is smaller than the increase in the previous two years. The corresponding increase in 2015 and 2016 was around 5 percent each year. Total expenditures on social protection amounted to SEK 1 332 billion in 2017.

Expenditures on social protection as a share of GDP has varied from year to year. The share fell from 36.1 percent in 1993 to 29.1 percent in 2017. Between 1993 and 2000, the share decreased steadily, and amounted to 28.3 percent in 2000. In the 2000s, the share varied between 27.4 percent (in 2007) and 30.4 percent (in 2003).

Expenditure on the elderly was the largest expenditure item

The largest expenditure item was the elderly, which amounted to 43 percent of social benefits in 2017. The second largest expenditure item was health and medical care, which accounted for 26 percent of total social benefits. This was followed by expenditure on disability and family/children, which accounted for 11 percent and 10 percent of total social benefits respectively.

Graph: Percentage distribution of expenditure on social protection by function, 2017 — Percentage distribution of expenditure on social protection by function, 2017

Expenditures on the elderly increased by SEK 26.0 billion, an increase of 4.8 percent between 2016 and 2017. Old age pension, which is the largest item of expenditure on old age, increased by SEK 20.9 billion, which corresponds to 5.1 percent.

Expenditures on health and medical care increased by SEK 10.7 billion, which corresponds to roughly 3.2 percent. Expenditures on both inpatient and outpatient care increased. Inpatient care increased by SEK 5.5 billion, which corresponds to 5.2 percent compared with the previous year. A major part of outpatient care refers to other direct provision, which increased by SEK 5.4 billion and corresponds to 4.2 percent. Expenditures on paid sick leave decreased by SEK 0.9 billion in the same period.

Expenditures on disability increased in 2017, following a decrease in 2016. The increase in 2017 was SEK 3.5 billion, which corresponds to 2.5 percent. The item comprising assistance in carrying out daily tasks increased by SEK 3.6 billion, which corresponds to 9.6 percent, in 2017, following a decrease in 2016. Cash benefits in the form of disability pension continued to decrease and in 2017 this decrease amounted to SEK 1.5 billion.

Expenditures on family and children remained relatively unchanged compared with the previous year and only increased by SEK 1.1 billion, which corresponds to 0.8 percent, between 2016 and 2017.

Expenditures on other social exclusion decreased sharply in 2017, following two years of relatively large increases due to a high level of immigration. The decrease in 2017 was mainly related to decreased expenditures on accommodation as a result of fewer asylum seekers. Expenditures on accommodation decreased by SEK 8.4 billion, which corresponds to roughly 36 percent, between 2016 and 2017. Total expenditures on social exclusion decreased by SEK 11.0 billion, which corresponds to approximately 18 percent.

Social protection expenditure by function in relation to (%) GDP. Million SEK - current prices

Function	2012	2013	2014	2015	2016	2017
1. Sickness/Health care	270,422	281,976	296,911	314,925	330,146	340,813
2. Disability	132,783	135,249	136,398	140,216	138,579	142,072
3. Old Age	449,982	479,200	489,960	513,489	537,424	563,459
4. Survivors	16,131	15,632	14,681	14,081	13,685	13,375
5. Family/Children	111,726	116,673	120,697	125,590	131,455	132,539
6. Unemployment	43,633	47,184	43,765	44,108	45,159	45,633
7. Housing	16,869	17,317	18,291	18,614	18,307	18,269
8. Social exclusion nec.	24,519	26,592	29,824	39,799	60,100	49,086
Expenditures for social protection benefits	1,066,065	1,119,823	1,150,527	1,210,822	1,274,855	1,305,246
As a % of GDP	28.9	29.7	29.2	28.8	29.1	28.5
Administration costs/Other expenditures	20,815	21,215	22,412	24,468	25,160	26,529
Social protection expenditure	1,086,880	1,141,038	1,172,939	1,235,290	1,300,015	1,331,775
As a % of GDP	29.5	30.2	29.8	29.4	29.6	29.1

International comparisons

In the early 1990s, Sweden had the highest level of social protection expenditure in relation to GDP compared with other countries in the EU. In recent years, Sweden’s expenditures lie just below the EU average. In 2016, France had the highest level of expenditure on social protection as a share of GDP, at 34.3 percent. Finland and Denmark had the second and third highest levels of expenditure on social protection, at 31.8 percent and 31.6 percent of GDP respectively. Romania was the EU country with the smallest share, 14.6 percent, and the only one with a share smaller than 15 percent.

Social protection expenditure in the European Union, Iceland, Norway, Switzerland, Serbia and Turkey in relation to (%) GDP

Country	2012		2013		2014		2015		2016
Belgium	29.6		30.1		30.2		30.3		29.8
Denmark	32.0		32.5		32.8		32.3		31.6
Finland	30.1		31.1		31.9		32.1		31.8
France	33.8		34.2		34.5		34.2		34.3
Greece	28.1		26.4		26.0		26.2		26.6
Ireland	23.6		22.6		20.6		15.8		15.8
Italy	29.3		29.8		29.9	p	29.9	p	29.7	p
Luxembourg	22.7		23.1		22.4		22.1		22.0
Netherlands	30.6		30.8		30.6		29.9		29.5
Portugal	26.4		27.6		26.9		25.7		25.2
Spain	25.5		25.8		25.4		24.6	p	24.3	p
United Kingdom	28.9		28.3		27.5		27.6		26.2	p
Sweden	29.5		30.2		29.8		29.4		29.6
Germany	28.8		29.1		29.0		29.2	p	29.4	p
Austria	29.2		29.6		29.8		29.8		30.3
Total for the EU15	29.6	p	29.8	p	29.5	p	29.3	p	29.0	p
Bulgaria	16.6		17.6		18.5		17.9		17.5
Cyprus	20.9		22.8		20.0		19.9		19.1
Estonia	15.0		14.8		14.9		16.1		16.6
Latvia	14.4		14.6		14.5		14.9	p	15.2	p
Lithuania	16.3		15.4		15.3		15.6		15.4	p
Malta	19.2		18.9		18.3		17.1		16.7
Poland	18.9		19.4		19.1		:		20.3
Romania	15.4		14.9		14.7		14.6		14.6
Slovakia	18.0		18.3		18.5		18.2		18.4	p
Slovenia	24.9		24.7		23.9		23.7		23.3	p
Czech Republic	20.4		20.2		19.7		19.0		18.9
Hungary	21.3		20.8		19.8		19.4	b	19.2	p
Total for the EU27	28.7	p	28.9	p	28.7	p	:		28.1	p
Croatia	21.6		21.4		21.8		21.8		21.3
Total for the EU28	28.7	p	28.9	p	28.7	p	:		28.1	p
Iceland	22.9		22.6		23.1		22.3		:
Norway	24.6		25.1		26.0		27.9		29.0
Switzerland	26.6		27.4		27.2		27.8		28.1	p
Serbia	24.0		23.3		23.4		22.1		21.5
Turkey	12.5	b	12.2		12.1		12.0		:

p) Provisional data. b) Break in time series. :) not available. Sweden has been updated with the latest figures.

The different taxation regulations pose a major problem for international comparisons. Some countries regulate taxes on certain benefits, while others do not. In addition, some benefits in certain countries consist of tax deductions, while other countries pay the benefit directly. Slightly more than half of the social protection benefits in Sweden are cash benefits. Most of these cash benefits are taxable. If taxation is taken into account, the percentage of GDP from benefits in 2017, excluding administration costs, fell from 28.5 percent including tax to 25.1 percent excluding tax.

More information

This data is also available in a database on Eurostat’s website under Population and social conditions – Social protection.

Definitions and explanations

Social protection is defined here as all services from public or private organisations with the purpose of reducing the burden on households and individuals from specially defined risks or meeting specially defined needs. A prerequisite is that these services do not require a return of services and that they are not based on individual arrangements. The benefits may be either in cash or in kind.

Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.