Pensions have been increased for a fourth year, up to €2.17 per week, or €4.50 per week when considering the COLA. The measure is expected to cost a total of €10 million. Due to the increase, the first €13,434 of pensions will now be tax exempt.

Service pensions will also increase by €200, benefitting around 4,500 persons.

Bonuses given to persons who did not pay enough contributions to qualify for a minimum pension will increase by €50; while those who paid contributions between one and five years will increase by €200; and those who paid contributions for more than five years will increase by €300. Around 12,500 people will benefit from the measure.

The incentive granted to private sectors workers to continue on beyond retirement age (65) will now be extended to the public sector.  This extension can only be approved upon request of the worker and the consent on the employer.

Fiscal tax incentives extended towards private pensions, known as third pillar Pensions schemes, and voluntary occupational pension schemes will be improved; specifically, a tax emption on the first €2000 per annum, and an increase in the tax reduction rate on pensions from 15% to 25%.

In a measure designed to target pensioners, benefits for medical assistance will also increase by €5.14 per week for those married persons where there are two adults who suffer from chronic illnesses.

Those turning 75 years old and continue to live in their home will be given a €300 grant, in a measure that will cost €9 million and benefit around 29,000 persons.

Government savings bonds for pensions will be reissued, after seeing 14,000 pensions participate over the last two years. The government expects 6,300 pensioners to be eligible for this issue.

The Finance Minister also announced that the working group focusing on Home Equity Release has been completed, which will allow pensioners to improve their annual revenues. More details will be announced in the coming weeks.

Home-carers allowance will no longer be subject to means testing

The Budget proposed more measures aimed at improving the assistance will be provided to persons with disability. Beyond other initiatives, the payment given to those who assist persons with a disability who are not in the labour market will be €150 per week, up by €10.

The allowance given to parents with children who suffer from disability will also be increased by €5, up to €25, with indications that around 1,400 children will benefit.

Individuals and their home-carers will no longer be subject to means testing in the issuance of the Carers Allowance, while those above 85 years will no longer need to be evaluated. The measures are geared to ensure that more persons can remain within their homes and communities, while also addressing the burden and pressure placed upon the elderly homes.

New benefits for social security forces who are injured during a work incident will also be introduced in the coming weeks.

Children allowance up to €96 per child

There will also be an increase in Children's Allowances for families who earn less than €20,000 per year. The rate will be increased to a maximum of €96 per child. The initiative will affect 24,600 children and 16,500 families, costing a total of €2 million per year.

Extra day of leave granted; Self-employed can now claim unemployment benefits

Workers will also be granted an extra day of leave beyond the day added last year, as part of the government's pledge to return holidays which fall on a weekend to the workforce.

As part of the government's agreement with social partners, the minimum wage has also been increased by €3 per week.

Another tax refund will be issued next year, costing the government a further €11.5 million.

Single part-time workers who earn above €9,100 but do not reach the minimum wage will no longer be taxed.

The budget has also proposed that self-employed workers who are required to stop their practice and register for employment will be able to earn unemployment benefits according to the contributions they had provided.

The VAT rebate on weddings will also be increased by € 250 up to € 2000.