Pensions

For the second consecutive year, the government will be increasing the pension. As from next January, pensioners will receive an increase of €4 each week or €208 each year. This increase will also be subject to the pro-rata.

Persons 61 years or older will not be paying income tax on their pension unless it exceeds €13,000. This reform will be spread over a period of two years. It is estimated that through this initiative, pensioners will have saved up to €585 each year.

More than 22,000 pensioners are expected to benefit from this measure.

Single pensioners will benefit from tax reductions for those who earn up to €10,500 yearly. This will increase to €13,000 in 2018.

Supplementary help for pensioners

The supplementary help which the government announced for minimum wage earners will be also extended to senior citizens with a low annual income. The measure aims to help more than 9,500 pensioners who are married and live on one pension.

The government will give €300 to those who are 75 years of age or older and who still live in their house. A bonus for those pensioners, especially women, who would not have accumulated enough years in tax contribution for a good pension, will also be given. This bonus will be of €50 a year. 12,000 people are expected to benefit from this measure.

As from next year, the government will add €200 to the service pension in a measure which will help 5,000 people.

Allowance for carers

The benefit for carers or those who take care of their parents will be increased substantially in an attempt to help keep senior citizens residing in their homes. The carer’s benefit will go up to €140 each week, which marks an increase of €35 weekly or €1,820.

The carer’s pension will also be extended to married couples. The Carers Allowance will be givento those who help their elderly in their own residence with a medium level of dependency. This rate will be of €90 per week, which marks an increase of €14 or €728 a year.

Assessment on the level of dependency will be carried out by professionals according to the Barthel Index and the Mini-Mental Score.

Pensions for persons with disability

The Minister said that the government wants to have a total reform in the pensions for persons with disability. This reform will look into the whole spectrum of disability as mentioned in the Barthel Index. Those who fall into the lowest part of the index, meaning they have a severe form of disability, will receive the highest benefit so that gradually, their income will be relative to the minimum wage.

The second level will include those who, thanks to previous initiatives, are now part of the work force. A third level will include those disabilities which so far are not covered by the law. This will include persons under 60 who have undergone an amputation.

Another measure will also have persons with disability entitled to free medicine using the pink card. 

Renting

The government will be doubling the subsidy on rent paid by vulnerable families in a measure which will help 1,400. This subsidy currently varies from €66.67 to €83.33 according to the income and the size of the family. It will now be doubled to €133.34 to 166.66.

The aim of this measure is to double the number of persons benefiting from it to 2,800. Those wishing to benefit from this scheme will need to present their rent contract.

Revised rent of government property

Rent prices of government social housing were liberalised in 2009, with subsequent increases in 2010, 2013 and 2016. The government has proposed to revert prices to what they were in 2009. The increased cost from 2013 until now will be reimbursed.

Preferential rates for certain rent

In order to provide security to families with low incomes, a pilot project involving 100 cases will be launched. Landlordsrenting to low-income families that enter into a contract of at least seven yearswill be paying 5% less tax on the rental income. This does not apply to Special Designated Areas. In the coming weeks, criteria for eligibility will be announced.

Launch of a fund to address complaints of the past

Acknowledging that changes of pension systems from year to year have created a number of anomaly, the government will be launching a scheme to address this. The change of pension systems has led to a lack of peace of mind, affecting former police officers, workers from the Malta Electricity Board, issues of overtime by police officers and former port workers.

With this in mind, workers of Sea Malta have already been paid the amount owed to them.

The 2017 budget will see €8 million allocated for the launch of a fund that will address the complaints and outstanding issues of the abovementioned groups of people. Plans include the launch of a board that will administer the funds to the necessary people.

Subsidies for at-home Care Workers

The government will be dedicating a sum of money to the pre-existing sum for the Carer at Home project. Through this scheme, elderly persons who are waiting to enter a home will be able to choose a care worker to come to their private home, on a full-time or part-time basis against a proportionate financial subsidy. The maximum financial assistance given will be €5,200 per year.

Revision of means test

As promised in the electoral manifesto, the government will be gradually revising upwards the capital limit at which persons with a low income or at risk of poverty may qualify for benefits that are not contributory. In this way, non-contributory benefits will be given to more low-income individuals and in this way the thresholds are more realistic.

As part of this reform in the way means tests are carried out, one threshold for non-contributory assistance has been created, inclusive of pink-slip holders. In this way, the new thresholds will be: €23,300 for married couples and €14,000 for single persons. This means that the limit up to which married couples can apply for non-contributory benefits has gone up by €7,000 while the limit for single persons has gone up by roughly €4,700.

These changes are expected to impact around 1,000 people, many of whom are elderly and pensioners, who now will be eligible for the pink-slip, giving them access to free medicines.