The 2026 Budget will continue to strengthen and support Maltese and Gozitan families through a number of family-oriented measures that reflect the Labour Party's core principles based on social justice, Parliamentary Secretary Andy Ellul said.

Following last year's largest tax cut in history, the Government is introducing a key new measure; a reduced tax rate for parents, which will directly financially assist parents with children, he said.

He stated that the Government remains committed to further strengthening employment and workers' conditions through a range of initiatives aimed at achieving a better work-life balance.

Ellul referred to discussions that will start next year with social partners to extend Maternity Leave, Paternity Leave, and Parental Leave. He also mentioned the introduction of new types of leave such as Miscarriage Leave, NPICU Support Leave, and Bereavement Leave for parents who lose a child.

Ellul added that the Government is also committed to enhancing work-family balance by increasing remote working opportunities to provide greater flexibility for employees.

Labour MP Cressida Galea said that 68,000 families will benefit from the new Parent Rate, resulting in around €160 million in combined savings. She said that this new tax rate for parents will lead to reductions of up to €10,000 per year, with an average of €2,400 in family savings over a three-year period.

She added that, along with this major measure, next year the Government will also increase the birth bonus by €500, the adoption bonus by €500, and the children's allowance by €250 for low-income families.

Galea stressed that these measures show how the Labour Government places the family at the centre of its decision-making and delivers on its promises through concrete action. The people can clearly recognise the contrast between the two parties.

"While Nationalist Governments made promises they failed to fulfil, Labour Governments have consistently delivered on their commitments and often exceeded expectations. Over the past twelve years, Labour has presented a series of increasingly strong Budgets that ensure the wealth generated is shared fairly and sustainably among the people," the PL said.