Taiwan’s social protection expenditure (SPE) last year picked up 3.1 percent to NT$2.63 trillion (US$80.89 billion), with social benefits comprising 98.6 percent, as the population ages, the Directorate-General of Budget, Accounting and Statistics said on Monday.
Social protection, or social security, provides benefits to people on the basis of risks faced across a life cycle — including unemployment, disability and maternity — and to those suffering general poverty and social exclusion, the statistics agency said, adding that it arrived at the figures based on the International Labour Organization and Social Security Inquiry.
SPE rose as more people claimed retirement benefits, health insurance coverage grew more expensive and demand for long-term care services expanded, the DGBAS said.
Photo courtesy of New Taipei City Department of Health
At the same time, the government spent more money to finance benefits for education, housing and childcare, as well as stepped up rent subsidy for people who cannot afford to buy their own house, it said.
SPE constituted 11.2 percent of GDP, holding steady from a year earlier, although per capita expenditure climbed by NT$3,268, the DGBAS said.
Cash rose 1.1 percent to NT$1.39 trillion, accounting for 53.6 percent of overall social benefits, while social transfers in kind (education, healthcare, transportation and other services) gained 5.4 percent to 46.4 percent at NT$1.2 trillion, it said.
Old-age benefits accounted for the biggest chunk of the expenditure at 46.9 percent (NT$1.22 trillion), followed by benefits to support illness and healthcare at 34.8 percent (NT$903.7 billion), benefits for family and children at 7.4 percent and other benefits at 3 percent, the DGBAS said.
These were largely due to more people retiring from work and demand for long-term care services increasing, it said.
By measure of increase, housing benefits nearly doubled, or up NT$22.7 billion, as the government lowered the criteria for rent subsidy, the agency said.
Further, the government expanded transportation benefits to more commuters, it said.
Social benefits for older people are bound to surge, as Taiwan would become a super-aged society next year, when more than 20 percent of the population is aged 65 or older, according to the National Development Council.
The trend means a larger number of people would retire and claim retirement benefits and a bigger portion would need long-term care services, the DGBAS said.
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