95,000 pensioners, 53,000 workers and 15,000 students among them have started to benefit from an increase of more than € 56 million in measures announced in the 2022 Budget, said the Minister of Finance and Labor Clyde Caruana during a press conference, during which took a look at the budgetary measures that have entered into force since the first of January this year.
Minister Caruana said that, “These increases, amounting to no less than € 56 million, will be going directly into the pockets of Maltese and Gozitan families. The prudence of this government has led to the continued growth of our country’s economy during the months of the pandemic. The government has managed to keep the structure of the economy going and so we have been in a position to distribute these increases for this year. I look forward so that through the measures that are being put in place, the Maltese economy will remain on a solid footing so that what we have done this year is not one-off but repeated in every budget “.
Minister Caruana explained that all those workers who work overtime hours, whose basic salary does not exceed € 20,000 per year and who do not have a managerial position, have started to be taxed at a rate of 15 % on their first € 10,000 of overtime income. This measure is being enjoyed by over 30,000 workers and will leave around € 6 million in the pockets of Maltese and Gozitan families.
In addition, all those workers, including the self-employed, who work part-time, began to be taxed at an income rate of 10% instead of 15%. With this measure, the government will be repaying workers € 5 million in income tax deductions. About 23,000 workers are benefiting from this measure.
Minister Caruana also explained that those working parents, who have children under the age of 23 and who benefit from the In-Work Benefit, have also started to benefit from improvements in this scheme.
Couples working both, the income limit has been raised from € 35,000 to € 50,000 a year
Couples where one parent works, the income limit has been raised from € 26,000 to € 35,000 per year
Working as single parents, the income limit has been raised from € 23,000 to € 35,000.
The new minimum rates for around 7,000 families who will start benefiting from the widening of the limits of this scheme is € 200 per year, while all existing rates have been increased by € 100. per year per child. Thus, the government will be giving an increase of € 2 million to these families for a total expenditure of € 12.5 million per year.
Also from the first of January, all pensioners receiving a retirement, widow’s, invalidity and non-contributory old-age pension have started to benefit from an increase of € 24 million. In addition, an increase has also been granted to all recipients of supplementary allowance and service pension, while widows will be gradually adjusted to their pensions. The cost-of-living bonus for pensioners will also start to be paid in full to all those who have retired after 2008. Thus, the total increase on these measures for pensioners exceeds € 38 million.
Minister Caruana also explained that since the beginning of the year, about 15,000 students have started to benefit from a 10% increase in their stipend. In addition, the stipend will also be given to those students who work up to a maximum of 25 hours per week. The government will be giving students a total increase of € 5 million.
