Incoming funds or contributions to the financing of social expenditure are presented by source i.e., public authorities, employers and insured individuals or households. In some cases, financing is also used to establish funds with the purpose of guaranteeing future payments. Where necessary, and depending on the rules laid down, such funds may also cover ongoing payments.
Return on investment as a form of funding mainly relates to pension funds. Where transfers to funds are made, and where money from funds has been used to finance ongoing expenditure, the net amounts are listed in the expenditure statistics.
Benefits from public authorities that are payable only to their own employees are considered benefits payable by an employer. Certain benefits payable by employers to their employees (e.g., benefits for part of a period of sickness absence) are regarded as being financed by the employer, even though in other contexts such benefits would be considered part of an employee’s salary.
The social expenditure data do not include user charges for healthcare and social services. According to the ESSPROS method of calculation, return on property investments is considered part of the financing.
In expenditure calculations administration costs is treated as a single entry. In principle, only expenditure on the direct administration of social expenditure is included. However, it is not always possible to separate administration costs from other payroll or running costs.