The Malta Independent 28 July 2026, Tuesday
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MPs’ remuneration

Sunday, 11 January 2015, 08:00 Last update: about 13 years ago

The three-page feature (TMIS, 4 January) on the proposed escalation of parliamentarians' remuneration omits any reference to their pension system. Service (occupational/second pillar) pensions were "outlawed" in 1979 for all workers in Malta, with the exception of members of parliament and the police. This special category of workers still enjoys an uncapped service pension. Furthermore, in the case of parliamentarians, their service pension is index-linked to future increases in MPs' honoraria (if they serve, if I'm not mistaken, during at least two administrative periods). 

The rest of the local working population has to make do with a capped contributory Social Security (first pillar) pension. What does this mean? It means that, however high your salary or declared self-employed income, your maximum permissible annual pension can only be (currently, and before tax) two-thirds of around €20,000, which is not index-linked to future salary increases, but only subject to cost-of-living increases. Furthermore, you are not entitled to a second pension organised and partly funded by your employer and if you have such a second pension (also called a service/occupational/second pillar pension), you will be made to suffer corresponding deductions from the Social Security pension to which you contributed.

The last budget has permitted fiscal incentives for workers to establish their own private (third pillar) pension. This is obviously only open to well-off workers and not to those who are financially-stressed.

Nobody denies that parliamentarians have responsible jobs, but so do many other workers. Our MPs have, however, done very little to remove the above glaring injustices. Our two parties in parliament describe themselves as Christian Democrats and Social Democrats - yes, you've got it: it sounds like more political empty rhetoric.

 

Prof. Albert Cilia-Vincenti

President, National Association of Service Pensioners

 

 

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