In a news conference with the theme Malta, Certainty and Stability, the Minister for Social Policy and Children’s Rights Michael Falzon said, “I am proud to be part of this government, which understands the realities of -people, addresses and fulfills people’s needs and desires. Committed to giving a better quality of life and this budget is precisely proof of all this, so that we can see everyone living a suitable standard of living. Especially our pensioners, who will see a €50 increase in each payment, every 4 weeks.”
Minister Michael Falzon said that all retirement, widow, invalidity pensioners, and those who receive the non-contributory old age pension will be enjoying the full increase in the cost of living of €9.90 per week.
In addition, they will receive an additional increase of another €2.60 per week, so that in total each pensioner will increase €12.50 per week in 2023.
This means an investment that reaches €70 million and which pensioners will benefit from.
Minister Michael Falzon listed a series of other measures that will be improving the quality of life of all pensioners. Among others, he mentioned how pension increases will not be taxed as the limit of the pension tax exemption will rise again so that those who earn up to the equivalent of the maximum pension will no longer be taxed .
Thus this amount next year will rise to €14,968 while those with a married calculation will continue to enjoy a tax exemption on any other income up to €3,600 per year.
A cost of living bonus is paid in full to all pensioners
Minister Michael Falzon explained that the process that started this year will be continued, meaning that gradually, the bonus for the cost of living will begin to be paid in full to all pensioners who retired after 2008.
Thus in 2023, 56,000 pensioners will enjoy a variable increase up to a maximum of €1.50 per week, with an expenditure of almost €1.7 million.
Additional addition to widows
A similar process that started this year will continue in 2023 as well, whereby we are gradually adjusting the rate of widows’ pension so that by the end of the legislature it will be equivalent to the full pension of their spouses who has been missing.
With this adjustment it is estimated that almost 9,000 widows will benefit from additional increases in their pension which can cover up to another €3.54 per week, with an expenditure of around €1.6 million.
Increase in service pension
As is done every year, the amount of service pension that is ignored in the social security pension assessment will be increased once again by €200. Thus during 2023 the sum exempted for this purpose will rise to €3,266.
Service pensioners who are over 72 years of age or older will continue to benefit from the improvements we have introduced in the last two years concerning the part of the service pension they have calculated to get the sum, which is now being all exempted.
Increase to the elderly who do not qualify for the contributory pension
Minister Michael Falzon explained that approximately 15,000 seniors and seniors who do not qualify for a pension will receive €50 more in the bonus each year. Most of those who will benefit are women. In fact, in 2023, the bonus for those who have paid less than five years of contributions will rise to €450 per year, while for people who have paid more than five years but less than ten years of stamps, the bonus it will rise to €550 per year.
Justice on past anomalies
The process by which a number of past anomalies are being addressed will also be continued. Until now, the cases of police overtime that had not been paid by the previous government and the case of the Malta Electricity Board have been closed. This year also the payments due to the former workers of Xatt will be closed.
The Minister Michael Falzon said that next year another €8 million will be voted in order to address injustices of the past such as making the payments due to former Corps workers who later entered the public service, apprentices and student workers. With this next year’s payment, they will also be closed.
They will also continue payments due to former Corps workers who later joined the public sector, former Gas Board workers and former MEB trainees.
This is apart from another €2 million voted to address past anomalies.
“This is another continuity Budget that puts the social soul at the forefront, which has always distinguished this administration. We believe in creating wealth, so we are attracting more investment to our country, to continue investing in the small. We want to create wealth so that everyone can benefit from it, especially those who need to be weighed the most,” concluded Minister Michael Falzon.
