Momentum Proposes Raising The Minimum Wage To €360 & 15% Income Tax For Fresh Graduates

Momentum has called on the government to use Budget 2027 to reduce the tax burden on workers and local businesses, proposing changes to minimum wages, income tax and corporate taxation.

The party is proposing a gradual increase in the minimum wage to €360 a week over four years, alongside making annual cost-of-living adjustments (COLA) fully exempt from income tax.

To encourage graduates to remain in Malta, Momentum wants fresh graduates to pay a flat 15% income tax rate for their first five years after graduating. Level 7 and 8 graduates, as well as professionals returning after at least five years abroad, would qualify for the same rate for their first ten years back.

On corporate tax, the party proposes gradually increasing the effective rate paid by foreign corporations from 5% to 20% over five years, while reducing the domestic rate to 20% over the same period. Businesses with a proven record of tax compliance would qualify for a reduced rate.

Other proposals include a 0% tax rate on intellectual property income for five years for companies investing more than 10% of their annual turnover in research, followed by a 10% rate. Momentum also wants employee share option schemes exempt from capital gains tax and incentives for investment in renewable energy, battery storage and young farmers.

Momentum Treasurer Carmel Asciak said Malta’s tax system places a disproportionate burden on workers and local businesses, while graduates leave the country in search of better opportunities.

The party said its proposals aim to create a fairer tax system, encourage innovation and help retain talent in Malta.

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