Cost of Living Adjustment (COLA)
Malta Budget 2017
Deloitte Malta presents a summary and analysis of the Malta Budget 2017 speech presented to the House of Representatives by the Hon. Prof. Edward Scicluna, Minister of Finance on 17 October 2016.
Headline inflation: Cost of Living Adjustment (COLA)
- The Consumer Price Index (CPI), which is the national yardstick employed for the calculation of the Cost of Living Adjustment (COLA), is expected to hover at around 0.7% during the course of 2016. A turnaround of the overall decline in prices is expected in 2017, with the CPI measure projecting a headline rate of inflation of approximately 1.5%.
- The EU Harmonised Measure Index of Consumer Prices (HICP), which includes expenditure by tourists during their stay in Malta, is estimated at 1.1% for 2016. This measure is also projecting an inflation rate of approximately 1.5% next year.
- Within this context, the cost of living adjustment agreed with the social partners will be €1.75 per week.
Disclaimer: This publication reflects high level announcements made in the Budget Speech on 17 October 2016, which are typically implemented through detailed legislative amendments and tax guidelines that have yet to be published. Clients are advised to seek appropriate professional advice following the publication of such detailed amendments or guidelines and prior to implementing any actions based on the information given in this publication.
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