The Office of the Prime Minister has remained mum on Joseph Muscat’s termination package, but workings by this newspaper put the figure at around €135,000 over three years.

Muscat had announced he would resign in December of last year, in the wake of the scandal surrounding the murder of journalist Daphne Caruana Galizia. He officially stepped down on Monday 13 January, and was replaced on the same day by Robert Abela, who had just won the Labour leadership election.

The Malta Independent on Sunday asked the OPM to confirm that the Cabinet had approved Muscat’s termination package and to state what it includes. A spokesperson for PM Robert Abela simply said that, “As was the case with previous outgoing Prime Ministers and Ministers since 2004, Dr Joseph Muscat was entitled to termination benefits, which were approved by Cabinet last year.”

Pressed to say what amount had been given to Muscat, the OPM failed to reply.

Prime Ministers, Ministers, Parliamentary Secretaries and Opposition Leaders are entitled toa Terminal Benefit and a Transitional Benefit upon termination of their employment.

The workings are presented in a 2008 document that had been tabled in Parliament by then Prime Minister Lawrence Gonzi.

It is unclear whether the schedule has since been updated.

The document states that people who have occupied these particular roles are entitled to a terminal benefit equivalent to a month’s salary for every year of continuous service in the post. There is, however, a minimum benefit equivalent to six months’ salary.

According to the latest available figures (for 2019), a Prime Minister’s salary amounts to €63,144 (a salary of €56,880, an additional allowance of €5,823 and a cash payment of €441).

Muscat was Prime Minister for just under seven years, which means he was entitled to the equivalent of half a year’s salary - €31,527.

There is also the monthly Transitional Allowance, payable for three years after the termination of employment, at an established percentage of the total salary and benefits at termination.

Muscat falls in the bracket of those who would have spent between five and seven years in the role, which means his Transitional Allowance is equivalent to 55% of the salary and benefits he had when he resigned.

This amounts to €34,729 per year, and a total of €104,187 over three years.

The Terminal and Transitional Allowances combined add up to €135,714.

The real figure could actually be higher, since Cabinet salaries are revised upwards every year. Salaries have increased by an average of €1,000 every year since 2008.

The sources said they suspected that the Cabinet could have also agreed to a different package, hence the reason why the OPM has not revealed the figures. They also said they expect the Opposition to table a request in Parliament for a copy of the termination agreement.

The entitlement to both benefits ceases if the person in question is employed by government, by an EU institution or is elected as MEP within three months from termination of employment.

Questions sent to the OPM

1)    We understand that a termination package for Dr Joseph Muscat was agreed to by the Cabinet. How much is the package? 

2)      Apart from the financial remuneration, what other benefits does his package include?

3)      Is it true that the package includes the use of two cars?