Social Measures

Malta Budget 2024

Similar to previous years, the portion of any service pension which is not to be reduced from the social security pension will be increased by a further €200. Furthermore, in certain instances, the commuted part of the service pension will not be taken into consideration for the purposes of the reduction in the social security pension.
Adjustments to the widows’ pension rate so that over time this becomes equal to the deceased spouse’s pension.
A bonus increase of €50 per year to persons who have reached retirement age but who do not qualify for a pension since they lack sufficient social security contributions. In 2023, the bonus for those who have paid less than 5 years’ worth of social security contributions will increase to €450 per year, whilst for persons who have paid more than 5 years but less than 10 years of contributions, will receive an increased bonus of €550 per year.

The cost of living adjustment for 2023 amounts to €9.90 per week with students’ stipends increasing pro rata. An additional amount of €2.60 per week will be granted to pensioners.
Pensioners who retired after 2008 will be paid the full bonus in connection to the cost of living amounting to a maximum of €1.50 per week.

Introduction of an entitlement to unemployment, illness or injury at work benefits to workers who are in receipt of a widow’s pension. Entitlement will depend on the individual’s needs and on the amount of social security contributions that are paid up.
Also as of next year, persons who suffer from mental health issues and who have not worked for any period between the age of 18 - 30 years will receive 2 years’ worth of social security contribution credits.
Increase in the children’s allowance of €90 per child. This will come into effect from 2023.

Parents who adopt the child they are fostering locally will continue to receive part of the Foster Care Allowance, which will decrease gradually over a period of 4 years or until the child turns 21 years, whichever is earlier. This will come into effect from 2023 and is in addition to the reimbursement of expenses related to local adoptions and the payment of children’s allowance in the case of adopted children under 16 years.
Increase of €20 per month to the grant awarded to persons suffering from celiac disease.
Schools that receive the largest number of students coming from a difficult background will receive increased allocation of funds. This is in addition to the €10,000 grant per year which schools already receive.
As from next year, beneficiaries who become employed or self-occupied (as long as they earn the national minimum wage or more)will continue to receive 75% of social assistance in the first year of work, 55% in the second year, and 35% in the third year.
With effect from 2023, persons who are not in employment and who are receiving the contributory unemployment or sickness benefit may also be entitled to the non-contributory Medical Assistance.

With effect from 2023, the annual benefit paid to eligible parents who take care of their adult children suffering from severe disabilities will increase from €500 to just over €4,500.
An annual tax credit of €200 per child with disability to provide assistance to parents for therapy costs.
Subsidy of not more than 20% on the price of a ‘Drive from Wheelchair’ vehicle to persons who buy such a vehicle, and a subsidy of not more than 10% on the price of a purchased second hand modified vehicle (including cars equipped with lifts or ramps for wheelchair access).
With effect from 2023, persons who leave their employment to take care of elderly family members and who have paid on average at least 15 contributions per year from 18 years of age (down from at least 20 contributions per year), will qualify for social security contribution credits.

Any person in receipt of one of the carers’ allowance will be given the opportunity to pay up to 5 years of missing contributions when reaching 59 years of age.
Couples who cannot register as co-habitants but who can prove that they have lived together for a period of at least ten years or more will now be considered as registered co-habitants and may accordingly be eligible to register for any related carers’ allowances.
Unmarried individuals receiving social benefits and who live with and take care of an elderly relative will not lose any entitlement to such social benefits.

First-time buyers are provided with a grant of €10,000 over a period of ten years to buy a property the value of which does not exceed €500k.This is effective for acquisition of properties as from 1 January 2022
Interest free loans will be provided to whoever buys a property costing a maximum of €225k (increased by €50k) but who cannot afford to pay the 10% deposit.
Workers who work in particular sectors during atypical hours and have a basic pay that does not exceed €20,000 will receive a grant of €150.
A Therapeutic Centre will be offered to people who suffer from mental health issues. In the upcoming years a new Psychiatric Care Hospital will be built for patients who require constant care, to complement the care provided at Mount Carmel Hospital.
Prevention and Support mental health services will be promoted on a macro level in order to increase mental health awareness in work environments.
A number of incentives will be extended / introduced for Disciplined Corps, Police Corps, Armed Forces and the Civil Protection.
In 2023, a national helpline will be operating 24/7 to assist victims who are exposed to criminal acts such as fraud, violence and hate crime.
Disability social benefits will no longer be included in means testing in relation to housing benefits.