Government Social Security Expenditure Rises In First Quarter of 2026

Government expenditure on social security benefits in Malta reached €491.3 million between January and March 2026, marking an 11.2% increase over the same period in 2025. The rise was driven by higher spending on both contributory and non-contributory benefits, reflecting growing demand for pensions, family support measures and assistance schemes.

Spending on contributory benefits totalled €390.3 million, up by 9.9 per cent compared to the previous year. Retirement pensions accounted for the largest increase, with expenditure rising by €25.2 million. This was mainly due to a €32.5 million increase in payments under the Two-Thirds Pension scheme. Additional increases were registered in pensions related to widowhood, contributory bonuses, invalidity pensions and other benefits.

Non-contributory benefits reached €101 million, representing a significant 16.6 per cent increase year-on-year. Child Allowance recorded the largest rise, increasing by €5.4 million, largely due to the introduction of grants for families with children in Years 10 and 11, which added €3.9 million in payments. Other notable increases were seen in assistance aimed at helping elderly people live independently and in disability pensions and allowances. Small declines were reported in social and medical assistance spending.

The number of beneficiaries also increased across several schemes. Two-Thirds pensioners rose to 62,670, an increase of 4,050 beneficiaries over 2025, making it the largest rise among contributory benefits. Meanwhile, the Assistance to Help the Elderly Live Independently scheme remained the largest non-contributory programme, supporting 44,338 people during the first quarter of 2026.

Updated with Minister's comments: Minister for Social Policy and Children’s Rights Michael Falzon described the figures as evidence of the government’s “massive investment and unprecedented strong social commitment,” noting that the announcement coincided with the 70th anniversary of Malta’s social security system.

Falzon said coordinated efforts between the Department of Social Security and other entities ensured that most of the social measures announced in the Budget were implemented within the first weeks of the year, allowing pensioners and families to begin benefiting immediately.

He added that almost all of the Budget’s social measures are now in force and that citizens are already experiencing their impact.

Photo source: Pexels (Andrea Piacquadio)/ Malta Statistics Office

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