€500 For Parents Whose Kids Continue Studying Beyond Compulsory Age

Oct 28 2024

Starting in 2023, the government introduced a special financial allowance aimed at supporting families with children who continue their education beyond compulsory school age.

This initiative provides parents with €500 annually for three years, supporting both state and private school students who pursue post-secondary education until the age of 16

In 2024, the allowance was extended to cover post-secondary students in recognition of the financial burden families often face during these additional years of education. This benefit is distributed to parents of children in post-secondary programs, helping to alleviate expenses related to their studies.

In 2025, approximately 10,500 families will receive their second allowance payment. Meanwhile, parents whose children began their post-secondary education in September 2024 will receive their first installment.

With an estimated expenditure of €6 million, this program highlights the government’s commitment to supporting the educational advancement of young people and easing the financial responsibilities on families as students transition to higher levels of learning.

#MaltaDaily

€8 Weekly Pension Increase to Benefit Over 100,000 Pensioners

Oct 28 2024

The 2024 Budget includes an €8 weekly pension increase, totaling €416 annually with the cost-of-living adjustment, benefiting over 100,000 pensioners—including retirees, people with disabilities, widows, and other eligible recipients.

This increase underscores the government’s commitment to placing pensioners at the forefront of social spending.

In addition, pensioners born before 1962 will see adjustments aimed at closing the gap in Maximum Pensionable Income, a disparity originating from the 2006 reform.

This measure will affect approximately 26,000 individuals whose notional working salary would exceed the current Maximum Pensionable Income of €23,500, promoting greater pension equality among generations.

Since 2013, regular annual increases have brought average annual pensions to €3,583, equivalent to almost €70 per week—significantly shortening the time it takes pensioners today to receive what they once did in a full year.

Further tax exemptions for pensioners over 61 ensure these increases remain within tax-free thresholds, while widows continue to benefit from full exemptions introduced this year.

#MaltaDaily

Further Improvement For Pensioners Born Before 1962

Oct 28 2024

In the 2025 Budget, Finance Minister Clyde Caruana announced further financial enhancements for pensioners born before 1962.

Beginning next year, the government will address the gap in Maximum Pensionable Income (MPI) between individuals born before 1962 and those born later.

The initiative involves adjusting pensions for pensioners whose hypothetical salary, if they were still working, would exceed the MPI threshold of €23,500. This adjustment is expected to positively impact around 26,000 pensioners.

Starting next year, pensioners will also receive an increase of €8 per week, totaling €416 annually, including the cost-of-living adjustment.

Minister Caruana highlighted that, over the past decade, pensioners have seen a steady series of annual raises, bringing their total pensions to at least €3,583, or nearly €70 per week.

These measures underscore the government’s commitment to improving the financial security of the retired population, keeping pace with rising living costs and income disparities.

#MaltaDaily

0% Tax For Singles Earning Below €12,000

Oct 28 2024

In Budget 2025, Finance Minister Clyde Caruana announced tax reliefs and financial support for workers, families, and pensioners, following a temporary pause due to the 2022 energy crisis, which cost Malta €350 million to shield households and businesses.

With energy subsidies reduced and the national deficit shrinking, the government is now fulfilling its tax reduction pledge, benefiting single individuals, married couples, and parents.

Single taxpayers will see their tax-free income threshold rise from €9,100 to €12,000, saving them between €435 and €675 annually. For married couples, the non-taxable income increases from €12,700 to €15,000, offering savings from €345 to €645.

Parents, whose tax-free threshold will rise from €10,500 to €13,000, will save between €375 and €650 per year.

Families will receive further support, with two-child families at middle-income levels seeing total benefits up to €1,800 through tax cuts and an increased children’s allowance.

Pensioners working post-retirement will also benefit, with a 20% increase in tax-exempt income on additional earnings, allowing them to retain more of their income.

These measures aim to ease financial burdens, strengthen household finances, and sustain economic growth across Malta, reflecting the government’s focus on social welfare and stability.

#MaltaDaily