Article

Social measures

#MaltaBudget18

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.

Additional one day leave

An additional day of leave is to be added to the current leave entitlement of employees.

In-work benefit

The current ‘in-work benefit’ applicable to parents where only one parent is employed, will increase from €350 to a maximum of €450 per child per year, depending on the annual income of the family.  This benefit is applicable to families with an annual income of between €6,600 and €16,500 as follows:

Annual Income In-work benefit in 2017 In-work benefit in 2018
EUR EUR EUR
6,600 – 9,499 € 350 € 450
9,500 – 11,999 € 300 € 400
12,000 – 12,999 € 250 € 350
13,000 – 13,999 € 150 € 200
14,000 – 14,999 € 100 € 140
15,000 – 16,500 € 52 € 75

Increase in pensions

Both contributory pensions and non-contributory pensions shall be increased by €2 per week as from 2018.

Service pension

Service pensions shall increase by €200 per year.

Senior Citizens Grant

The €300 annual grant for persons over the age of 75 who still reside in their personal home, will continue to apply next year.

Pensioners

Currently, individuals who continue working beyond pensionable age are required to continue paying social security contributions until the age of 65. As of 2018, pensioners missing social security contributions, and not earning a full pension will be subject to a new pension assessment upon reaching the age of 65, which will take into consideration any social security contributions made between pensionable age and the age of 65.

Furthermore, self-employed pensioners who have not reached the age of 65 may opt to pay social security contributions at the rate of 15% on their net income rather than the full social security contributions as is currently applicable.

Government savings bond for pensioners 62+

Government savings bonds 62+ for pensioners will be issued again, with attractive interest rates.

Public transport

The Government will be implementing various measures to improve and strengthen the means of public transport.

Free Tal-Linja card

In 2018, persons aged between 16 and 20 will be entitled to free public transport.

School transport

The Ministry of Education will be working with school transport providers to set-up a plan whereby students attending Independent and church schools will benefit from free school transport with effect from the 2018/2019 scholastic year.

Social loans to acquire a residence

The Government has come into an agreement with APS Bank for the granting of social loans to 100 prospective property buyers. This initiative will be extended through an agreement with Bank of Valletta plc for another 300 social loans.

Equity release facilities

A working group shall be set up with the aim of introducing  a regulatory framework for equity release facilities to allow property owners  to continue residing in that property while receiving either a one-time payment or else monthly instalments from a financial institution, in exchange for the assignment of the right over the property or a portion thereof. Upon the demise of the person living in the property, the financial institution will be entitled to recover the amount originally paid to the property owner, together with any accrued interest.

Social housing incentives

The scheme "Nikru biex Nassistu", introduced to increase social housing will be extended to next year. Under this scheme, landlords rent their property to the housing authority for a 10 year period.

The Housing Authority will launch a scheme to offer financial assistance of up to €25,000 for restoration of properties to be used as social housing.

Did you find this useful?