Social Measures
The Malta Budget 2025 has a number of Social Measures.
- COLA to increase by €5.24 per week and minimum wage to increase by €8.24 per week.
Pensions to increase by €8 per week. - Whilst employers need not make contributions to an occupational pension plan for their employees,
they will have the obligation to offer to their employees the possibility to invest in such a plan. Opt-in by the employees is however optional. - Public sector workers who opt to take out a private pension plan will have contributions of up to €100 a month matched by the government.
- Government shall keep on subsidizing fuel, cereals, flour and animal fodder.
- Further amendments to the Wage Regulation Ordinance shall be implemented so as to ensure equality in social benefits (overtime rate, sick leave) in various economic sectors.
- In the upcoming year funds of around €25 million will be allocated to more than 50 public social partnerships which the government has with various voluntary organizations.
- A one-stop-shop will open in the South of Malta which will serve as the first centre for training, resources and research for the voluntary sector.
- Children’s allowance to increase by €250 for every child.
- A number of weekly monetary increases to pensioners, parents having children with disabilities were also proposed in the Budget Speech.
- Individuals who were born in 1976 or after have to contribute an additional year of social security contributions in order to receive a full pension. Thus, whereas the retirement age and the rate of social security contributions shall not increase, a total of 42 years of contributions would be needed (rather than 41 years) to receive a full pension.
- Benefits to parents, newlyweds and prospective parents and their spouses undergoing IVF treatment were proposed by the Minister in the Budget Speech.
- With effect from 1st January 2025, every person over 75 years of age who benefits from supplementary assistance shall be automatically eligible for free medication through community pharmacies by presenting their “Kartuna r-Roza” without the need to satisfy a test of means.
- Persons who have overcome a drug addiction problem and start to work shall be eligible to two years of accredited social security contributions.
Want to know more?
Ruth Farrugia Tax Director - Birkirkara
Elaine Marie Debono Tax senior manager - Birkirkara
