Cost of Living Adjustment (COLA)
Deloitte Malta presents a summary and analysis of the Malta Budget 2018 speech presented to the House of Representatives by the Hon. Prof. Edward Scicluna, Minister of Finance on 09 October 2017.
Headline inflation: Cost of Living Adjustment (COLA)
- The national yardstick employed for the calculation of COLA (CPI) is expected to hover around 1.5% during the course of 2017. As the economy is expected to continue reporting robust growth, the headline rate of inflation in 2018 is expected to reach 1.6%.
- Meanwhile, the EU Harmonised Measure Index of Consumer Prices (HICP) is expected to reach 1.5% by the end of 2017, and increase further to 1.8% in 2018.
- The cost of living adjustment agreed with social partners will be €1.75 per week.
- Employees earning a minimum wage during their second year of employment will have their weekly salary revised upwards by €3.00. As from the third year in employment, they will further benefit from an additional increase of €3.00 per week.
- Contributory and non-contributory pensions are set to increase by €2.00 per week.