OFFICIAL: COLA Increase to Amount to €12.81 per Week

Oct 30 2023

Finance Minister Clyde Caruana reiterated the Cost of Living Adjustment will amount to €12.81 per week.

Whilst addressing Malta’s economic and fiscal future, Minister Caruana predicted that Malta’s economy is forecasted to grow by 4.2% in real terms, and 7.4% in normal terms.

The Minister went on to highlight that a 4.4% increase in employment is expected over the next year. Caruana also held that unemployment is expected to remain low, at a rate of 2.7%, while inflation is expected to drop to 3.7%.

It was also highlighted that, over the next years, minimum wage will be increased substantially, as agreed by social stakeholders. Until 2027, minimum wage will increase to between €12 and €18 per week, in addition to the statutory Cost of Living Adjustment (COLA).

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Increase For Pensioners At €780 Per Year

Oct 30 2023

During the unveiling of Budget 2024, Finance Minister Clyde Caruana revealed that pensioners will be receiving another increase when it comes to cost of living.

All pensioners will be receiving an increase of €15 per week, or €780 per year, making it the biggest increase that pensioners have received in one year.

The increase will apply to pensioners in retirement, those who lost their spouses, those of invalid pension and those who receive an age pension.

The Minister also revealed that, in 2006, the government had split pensioners between those born before 1962 and those after.

Pensioners born before the aforementioned date had a guaranteed increase to address the cost of living. Those born after the date had a mechanism introduced which would see an increase: 70% of which is based on salary increase and 30% based on inflation.

The current government pledges that, as of next year, the mechanism applied to those born in or after 1962, will also apply to those born prior.

The government will also be introducing exemptions from tax for those over the age of 61 years. As of next year, the pension for widows will no longer be taxable for those who have not yet reached 61 years of age.

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Energy Will Continue To Be Subsidised, Minister Reveals

Lower Energy Bills For 2024, Minister Promises

Oct 30 2023

During the unveiling of Budget 2024, Finance Minister Clyde Caruana revealed that at the cost of another €350 million for Malta, energy will continue to be subsided.

Energy subsidies when it comes to electricity and fuel will be granted, €320 million will be spent by the government, with the total amount climbing up to €350 million.

The Minister highlighted how never in history has there been such a large boost on fuels. Every €5 out of €100 spent by the government will be used to subsidise energy. This makes it the most important measure, the Minister emphasised.

A business in Malta is paying 20c a unit. Compared to Italy or Germany, a unit costs approximately 40c. If these subsidies are not issued, the government forecasts that it will wreck the finances of most businesses.

Meanwhile, a middle income family in possession of 2 cars with a normal consumption of electricity and water will be saving €1,300 yearly on fuel and €700 on electricity.

Minister Caruana also highlighted that there won’t be a tax cut on COLA increase, but the government will help through subsidies aforementioned.

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First Official Look At Finance Minister Ahead Of Budget

Oct 30 2023

Minister for Finance and Employment Clyde Caruana at his office with the Budget 2024 publications in hand moments before he leaves to meet the President and then onto the House of Representatives.

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