Living Standards Measurements Study - Serbia 2002 - 2007

6.1.4. Amounts of benefit received
Examining the average amounts of benefits
received in 2007 compared to 2002, it is clear that
there was an increase in all benefits but at different
rates.
The largest increases in amounts were in
parents allowance, alimony, veterans and disabled
veterans allowance and humanitarian aid. For
humanitarian aid there was an increase in the
amount per household but a decline in the number
of households that received it demonstrating
increased efficiency as it was directed only to
people who really needed help. The amount of child
allowance doubled for all beneficiaries. Attendance
and assistance allowance increased by 2.7 times on
average. One-off municipal cash subsidies and
MOP are not received on a continuous basis.
For some benefits the amounts received are
higher for households above the poverty line than
those below it. This is the case for attendance and
assistance allowance and MOP (in 2007) and onetime
municipal cash subsidies (in both 2002 and
2007). This could be explained by the following:
• In 2006 the Law on Social Welfare introduced
the right to increased attendance and assistance
allowance for some levels of disability. The
additional funds are based on 70 percent of the
average monthly net income of that household.
People who receive pension and disability
insurance also have the right to this increased
allowance. In their case, the amount is equal to
the difference between the allowance they
receive through pension and disability insurance
and the amount of attendance and assistance
allowance.
• In relation to MOP, the regulations of the Law
on Social Welfare and Social Welfare Provision
of Citizens (Article 12a), provide benefits to a
family member who is unable to work, if, as the
owner of property, they entail the CSW to sell or
lease their property (or part of it) and receive
funds from this source. Or they entail the
property, without receiving payment, to the
Republic. In the latter case, the CSW signs a
contract with the individual, and the funds
received from the sale, or lease of the property,
are used to provide financial support of the
beneficiary whose property has been sold or
leased, in accordance with the contract.
6.1.5. Targeting and efficiency of the
benefit system
Results from 2002 and 2007 show that, on the
whole, social benefits were primarily targeted
towards poor households. Social assistance
programs mostly covered households living below
the poverty line in both years.
Graph 6.1. Targeting of benefits by poverty
thresholds
Below the
poverty line
Poorest
quintile
Above the
poverty line
16.2%
13.2%
2002 2007
29.1%
25.1%
33.1%
37.2%
Benefits were better targeted in 2007
compared to 2002. Benefits were received by more
(37.2 percent) of households living below the
poverty line in 2007 compared to 2002 (33.1
percent). The poorest quintile (containing 20% of
the distribution, quite a lot more than the 6.6%
living below the poverty line) shows a small
reduction in the proportion receiving benefits,
suggesting that benefits are being targeted more
towards those who really need it – the worse off
financially. As you would expect there were fewer
beneficiaries living above the poverty line in 2007.
According to the type of settlement for both
years, benefits were more likely to be received by
rural households. The reduction in overall take up of
benefits mentioned above was more prevalent in
urban settlements, suggesting that urban Serbia is
moving out of poverty at a faster rate (as confirmed
in other chapters).
LSMS 2007 shows that, on average, almost one
quarter of total expenditure of poor households is
covered by the benefits they receive. Compared to
20 % in 2002 this further shows an improvement in
2007.
Social welfare in Serbia
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