A strong economy is one that benefits families and secures a better future for our children, a statement by the Home Affairs Ministry and Parliamentary Secretariat for Social Dialogue read.

"One of the key elements of such an economy is quality employment with attractive conditions. For this reason, in the 2026 Budget, the government is once again strengthening Maltese workers."

This message emerged during a visit by Minister for Home Affairs, Security and Employment Byron Camilleri and Parliamentary Secretary for Social Dialogue Andy Ellul to the factory of Neriku Caterers, a Maltese company that provides catering services for various events.

Minister Camilleri mentioned a new scheme through which the government will encourage businesses to raise the salaries of employees who have been with a company for at least four years. The state will cover 65% of the pay increase (up to €780) for businesses in Malta, and 80% (up to €960) for those in Gozo, he said. The aim is to reward loyalty, retain experienced staff, enhance skills, and increase wages in the private sector, following similar progress already made in the public sector, he said.

Minister Camilleri explained that this measure aligns with the goals of the Malta Labour Migration Policy, which seeks to ensure stability in the labour market. He noted that while Malta recognises the need for workers from third countries in certain sectors, partly due to an ageing population and a low birth rate, it makes no sense for businesses to rely on a model that continually imports foreign labour from third countries without focusing on the conditions and skills of existing employees. "That is why," the Minister said, "we are rewarding employers who retain their workforce, not those who constantly replace workers with new ones."

Under government measures, employers who dismiss staff arbitrarily only to continually replace them are paying the price, including through the suspension of granting permits for new foreign workers, the statement read. Meanwhile, businesses that set a positive example will be rewarded through schemes like this one, as better pay makes companies more attractive to employees.

Parliamentary Secretary Andy Ellul said this initiative is a clear example of how the government is working to strengthen both employers and employees. He added that successful policy is not about promising everything to everyone, but about striking a balance between the needs of businesses and workers.