The government is increasing social investment by more than €120 million to further improve people's quality of life, Finance Minister Clyde Caruana said. This commitment covers a wide range of benefits and allowances that will rise from year to year.

Pension increases

Around 100,000 retirees, invalidity pensioners, widows, and those entitled to the age pension will receive an increase of €10 per week.
An additional average increase of €3.50 per week will go to about 7,000 widowed pensioners.
Widows still raising children will receive an extra €10 per week, and the allowance will now continue until the children reach age 23.

Supplementary allowance and annual bonus

The supplementary allowance will rise to €27.30 per week for couples and €14.40 for single persons. The income threshold will increase to €20,000 for couples and €14,000 for singles.
The annual supplement for those aged 65 and over will increase by €100 to €250. For the first time, couples in this age group will both receive it, rather than just one partner.

Pensioners' Cost of Living (COLA) Bonus rates will be standardised. Some currently receive different rates depending on retirement year. The last year of varying rates will be 2026; from 2027, all pensioners will receive a fixed weekly rate of €21.53.

Adjustments to married pension rates

Around 5,000 married pensioners will see weekly increases between €2 and €14, as differences between National Minimum Pension, Invalidity Pension, and Two-Thirds Pension rates are eliminated.

Service pension adjustments

Service pensioners who also receive a social security pension will benefit from a €200 rise in their commuted pension, now reaching €3,866. For those aged 72 or older, the full 25-year service pension amount will be ignored in calculations. About 7,000 pensioners will gain from this measure.

People not eligible for a pension will receive an increased annual bonus of €50. The amount will range from €600 (for one year of contributions) to €1,050 (for nine years of contributions).

Support for older persons

Elderly persons living at home, with relatives, or paying privately for residential care will receive an additional €75 in their annual grant. This will now reach €425 for those aged 75-79 and €525 for those aged 80 and over, benefiting around 45,500 people.

Sickness benefits

Rates for increased sickness benefit will rise to €34.42 per day for married persons and €25.81 for singles.
The regular sickness benefit will rise to €25.81 per day for married persons and €17.21 for singles.

Unemployment benefit reform

The period during which the higher unemployment rate is paid will increase from six to ten weeks, while the period for the lower rate will be reduced from ten to six weeks.

Support for people in rehabilitation

Persons dependent on drugs attending rehabilitation programmes will receive a €10 weekly increase in their allowance. Those who complete the programme successfully and secure stable employment will qualify for four years of accredited social security contributions. Employers will be exempt from paying their social security contributions for two years.

Support for persons with disability and carers

The Carers' Grant will increase by €179.24 to €5,368.89 annually. It will continue to be paid to non-working parents of children under 16 with severe disabilities.

The therapy refund for children under 16 with disabilities will increase by €250, bringing it to €1,000 per child per year. Eligibility will now extend up to age 23.

Children's benefits

While parents are benefiting from substantial tax reductions, the Children's allowance increase will target lower-income families. In 2026, the income threshold for higher-than-basic rates will rise from €27,434 to €30,000. Families earning under €30,000 will receive an extra €250 per child, while those earning under €23,000, apart from the €250, may receive up to €167 more per child depending on income. Over four years, families will see increases between €590 and €1,007 per child, in addition to tax reductions.

In-work benefit

An additional €75 per child will be added to the in-work benefit, as part of the plan to raise all rates by €200 by the end of the legislature. The highest current rate of €1,550 per child will therefore increase further.

Birth and adoption benefits

The birth and adoption bonus will increase by €500:
- €1,000 for the first child
- €1,500 for the second
- €2,000 for the third child and beyond.

The adoption expense refund for foreign adoptions will rise from €10,000 to €12,000. For local adoptions, it will double from €1,000 to €2,000, including a €500 grant component.

Fostering allowance

The fostering allowance will increase by €10 per week, from €6,240 to €6,760 annually.

Social assistance reform for single parents

Full social assistance for unmarried parents living with their own parents will no longer be reduced by 25%, as previously applied.