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

Cost of Living Adjustment for 2025: Extra €5.24 Per Week

Oct 28 2024

The cost-of-living adjustment (COLA) for next year will be €5.24 per week, which will also apply pro-rata to student stipends.

Additionally, as a result of a historic agreement between the Government and social partners, the National Minimum Wage will increase by €8.24 per week, reaching €221.78 per week. Importantly, the minimum wage in Malta will continue to remain untaxed.

#MaltaDaily

Moviment Graffitti Protest Minister During Budget 25 Speech

Oct 28 2024

During the 2025 Budget speech delivered by Finance Minister Clyde Caruana, a significant and unprecedented protest took place in Parliament. Moviment Graffitti, seated in the strangers’ gallery, began chanting, “We dance to the developers’ tune,” accusing the government of catering to developers’ interests. Their protest was so disruptive that it was picked up on the live television broadcast, causing the Minister to momentarily stop his speech. This led the Speaker of the House to intervene, suspending Parliament until order could be restored and the protesters were removed.

View this post on Instagram

A post shared by Malta Daily (@maltadaily.mt)

Such an event is historic, as it’s the first time in Malta’s parliamentary history that a protest has disrupted the Budget speech, a day typically marked by careful attention to the country’s economic and financial plans. The chant itself was a direct critique of the perceived influence developers have on government policies, reflecting growing public frustration around development and construction projects. The fact that this protest occurred on Budget day underscores the deep concerns some members of the public feel about the direction of these policies.

#MaltaDaily