The Ministry for Finance has launched a public consultation on the introduction of an auto-enrolment occupational pension scheme.
This, the government said, represents a significant reform in Malta's retirement savings sector.
"The main objective of this scheme is to strengthen access to retirement savings. Employers will be required to automatically enrol their eligible employees in pension schemes authorised by the Malta Financial Services Authority. Employees will nonetheless retain the right to opt out of the scheme, maintaining its voluntary nature while increasing access to retirement saving solutions."
"Eligible employees include those between 18 years of age and those who are ten years away from their retirement age, who pay tax in Malta, work habitually in Malta, and whose job is their primary source of income."
The consultation document proposes a minimum monthly contribution of €50 by employees who choose to participate in the scheme, deducted directly from their salary. "The Government has committed to pay an additional contribution for his workers, up to a maximum of €100 per month, as a sign of responsible leadership. In the private sector, employer contributions will remain voluntary."
"The schemes are intended to be defined-contribution in nature, with investment structures that automatically adapt to the employee's age (life-cycling). Cost-capping measures will be introduced to ensure value for money, alongside standardised information requirements to guarantee transparency and ensure participants are fully informed."
Pension portability when changing employment will be ensured through mechanisms allowing for seamless transfers between schemes, the government said. "Those who participate in these schemes will be able to benefit from tax benefits for both the workers and employers."
The consultation document proposes that the scheme be launched in the public sector in the fourth quarter of 2025 and extended to the private sector within six months thereafter.
The consultation period will last one month, during which feedback and proposals will be collected from stakeholders, organisations, and the general public. After the consultation closes, the Government will issue a report that addresses the suggestions received and outlines any proposed changes to the framework.
For more information or to participate in the consultation process, visit https://finance.gov.mt/.