More than 280,000 workers have started receiving what the government is describing as another bonus for the eighth consecutive year. This payment, a cheque issued by the Government, rewards employees for their hard work, a government statement said.

Previously, this bonus was labelled as an income tax refund by the Labour government.

The bonus ranges between €60 and €140 for workers who were employed in 2023. In total, over an eight-year period, the Government will have spent slightly more than €158 million in this initiative.

This "bonus" is in addition to the Government's broader investment in workers through the largest-ever tax reduction rates for all employees, the government said in a statement. The tax cut means that every worker now pays no income tax on the first €1,000 earned per month.

The government emphasised that it continues to protect the interests of workers and families at a time when countries beyond Malta are facing unprecedented challenges and European governments are being forced to impose austerity. Thanks to a strong economy that secures the future for the next generation, the government "continues to encourage the labour sector, promoting the creation of quality and rewarding careers".

In fact, Budget 2026 will also incentivise businesses through new schemes that subsidise up to 80% of wage increases - up to €960 per year - for employees who have been with the same employer for more than four years in Gozo. In Malta, businesses will receive a subsidy of up to 60% of wage increases, capped at €780 per year.