Current transfers received by households during the income reference period and intended to relieve them from the financial burden of a number of risks or needs, made through collectively organised schemes, or outside such schemes by government units or NPISH.

It includes the value of any social contributions and income tax payable on the benefits by the beneficiary to social insurance schemes or to tax authorities.

In order to be included as a social benefit, the transfer must meet one of two criteria:

- coverage is compulsory (under law, regulation or a collective bargaining agreement) for the group in question,

- it is based on the principle of social solidarity (i.e. if it is an insurance-based pension, the premium and entitlements are not proportional to the individual exposure to risk of the people protected).

Social benefits are broken down into:

1.Family/children-related allowances;

2. Housing allowances;

3. Unemployment benefits;

4. Old-age benefits;

5. Survivors' benefits;

6. Sickness benefits;

7. Disability benefits;

8. Education-related allowances;

9. Social exclusion not elsewhere classified.

Social benefits do not include benefits paid from schemes into which the recipient has made only voluntary payments, independently of his/her employer or government which are included under "Pensions from individual private plans" (other than those covered under ESSPROS).