COVID-19 impact on Pensionable Income

On 19 February 2021, the Government of Malta published The Pensionable Income in accordance with the Thirteenth Schedule for persons born from 1st January 1956 to 31st December 1961 Regulations, 2021, (the ‘Regulations’).

The Regulations apply to persons, born between 1st January 1956 and 31st December 1961, who are employed in the private sector, or who are self-occupied persons, and their sector of employment has been adversely hit by the COVID-19 pandemic and were assisted accordingly by Malta Enterprise.

Through the Regulations, employed persons shall enjoy a step-up in their basic wage for pensionable income purposes, whereby their basic wage for January and February 2020 shall be annualised for the whole year, due to the fact that their basic wage was adversely impacted and decreased in any period from March to December 2020 due to the Covid-19 pandemic. Meanwhile, self-occupied persons whose net earnings have decreased in 2020 when compared to 2019, their net earnings for the year 2020 for Pensionable Income purposes shall be considered to have been equal to those net earnings declared in the year 2019.

The full text of the Regulations may be accessed here.