Social Measures

Cost of Living

• The cost of living adjustment for 2022 amounts to €1.75 per week. This adjustment will be granted to all employees, to pensioners and to those receiving social benefits. Students’ stipends shall be increased pro-rata.

• Additional cost-of-living mechanism to be set up for low-income families.

• Social security pensions shall be increased by €3.25 per week. Thus, together with the cost of living adjustment of €1.75, the increase for pensioners should be €5 per week (€260 per year).

• Furthermore pensioners who retired after 2008 will also benefit from a maximum increase of €2.50 per week (€130 per year) to their cost of living bonus.

• Pensioners benefitting from the widow’s pension, whose income does not exceed €10,221 per year, shall receive an increase of between €520 and €780 per annum.

• An increase of €150 per annum to the annual bonus will be granted to persons who have reached their retirement age but do not qualify for a retirement pension due to lack of contributions.

• Similar to previous years, the portion of any service pension which is not to be reduced from the social security pension is being increased by a further €200. Furthermore, in certain instances, the commuted part of the service pension shall not be taken into consideration for the purposes of the reduction in the social security pension.

• Individuals who have paid at least 10 years of social security contributions prior to January 1979 and none after such date, will now qualify for the equivalent of the minimum rate of the two-thirds pension, amounting to around €50 per week.

• Increase in applicability thresholds for the in-work benefit. For couples in gainful employment the applicability threshold will increase further from €35,000 to €50,000, for single parents from €23,000 to €35,000, and for a couple where only one person is in gainful employment the threshold will increase further from €26,000 to €35,000. The minimum annual in-work benefit will increase to €200 per family, together with an additional €100 for every child. 

• A new in-work benefit of €150 for eligible workers working irregular hours and earning less than €20,000 a year will be introduced. 

• Discussions with MCESD to implement the EU Work-Life Balance Directive on parental leave and work life balance. 

• Part time workers will be given the possibility to pay social security contributions on more than one part time job, up to a maximum of 40 hours per week.
  

• Married persons and/or couples whose income for 2022 does not exceed €14,318, will benefit from an increase in their supplementary allowance ranging from €3.47 to €6.50 per week, based on their income. Single persons including widowers whose income for 2022 does not exceed €10,221, shall benefit from an increase in their supplementary allowance ranging from €4.10 to €5.00 per week.

• An increase of €50, resulting in a €400 grant for those aged 80 years and over, and who live in their home or a private residential home.

• Increase in the Carer’s Allowance from €6,000 to €7,000 per year.

• An increase to the “Home Helper of Your Choice” scheme subsidy from €5.50 per hour to €7.00 per hour.

• Legal amendments to be introduced with respect to those who receive an inheritance whilst being entitled to a non-contributory pension and have been in receipt of such pension for at least 5 years. The capital means threshold for eligibility to such pension shall increase from €23,300 to €50,000 for married couples and from €14,000 to €30,000 for single persons.

• As from January 2022, eligible individuals for severe disabilities assistance will no longer be capital means tested. 

• An increase of €5 per week to the disabled child allowance resulting in a yearly allowance of €1,560.

• An increase of €300 per year for parents who stop working in order to care for children with severe disabilities, resulting in an annual benefit of €500.

• Allocation of €11 million for the continuation of the fund created to cater for inequalities suffered by certain persons in the past.

• An increase of €100 granted upon a child’s birth or adoption resulting in a total grant of €400 per child.

• Funds will be made available to all state schools to provide basic food and other resources to vulnerable children. 

• Numerous additions to the list of free medication and treatment offered by the Government.

• People aged 80 and over who benefit from a supplementary allowance shall be automatically eligible for free medical assistance (pink form).