Minister for Social Policy and Children’s Rights Michael Falzon said Tuesday that in 2023 €1.95 billion will be spent on social expenditure.
Addresing a press conference with the theme “Malta, Certainty and Stability,” Falzon explained how the weekly €12.50 increase in pensioners’ wage is split with €9.90 which is being added to cater for the higher cost of living, and an additional €2.60. This investment alone amounts to €70 million.
He also said that the increased pension will not be taxed, because the limit of the pension tax exemption will be increased so that those who earn up to the maximum pension will no longer be taxed.
He further said that the process to pay the bonus because of the high cost of living will continue to be paid to all pensioners who retired after 2008. This means that in 2023, 56,000 pensioners will receive a weekly increase of up to €1.50, which will cost the government almost €1.7 million.
He also clarified that the process of gradually adjusting widows’ pensions so that they will be equivalent to the full pension of their spouses, will continue. It is expected that almost 9,000 widows will benefit from this increase which can result in a weekly increase of up to €3.54 more, which amounts to an investment of €1.6 million.
With regard to a service pension, he said that there is going to be another €200 increase for the amount of service pension that is ignored in the social security pension assessment.
Falzon also said that the 15,000 elderly people who do not qualify for a pension and will receive an additional €50 in their annual bonus. The bonus for those who paid contributions for less than five years will rise to €450 a year, whilst the bonus for those who have paid fewer contributions for less than ten years will be €550 a year.
“I am proud to form part of this government, which understands the realities of the people, and addresses and fulfils the needs and wishes of the people. 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,” Falzon said.
“This is another 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,” Falzon said.