Prime Minister Robert Abela on Monday placed a €1,000 annual bonus for workers at the heart of the Labour Party's latest set of electoral proposals, presenting it as a direct investment in people and a tangible measure aimed at improving everyday wellbeing.
Addressing the media, Abela said the initiative is part of a broader social and economic philosophy, insisting that "there is no wellbeing unless we invest directly in people". The proposed bonus would be granted to all full-time workers, including single individuals, marking a departure from more narrowly targeted schemes and signalling an effort to reach a wide cross-section of the workforce, he said.
The measure is designed to be inclusive. Workers earning the equivalent of the minimum wage annually would qualify, and the scheme would also extend to part-time employees whose income exceeds that threshold. Those earning less than €12,000 a year through part-time work would still benefit, receiving a pro-rata bonus with a guaranteed minimum of €500.
This measure will cost the public treasury approximately €200 million annually. The bonus will be paid at a flat rate regardless of income level and will be distributed to employees, working pensioners, the self-employed, and students. Abela stated that the bonus will be granted to individuals who have been residents of Malta for a minimum of five years.
The Prime Minister also outlined a series of complementary proposals aimed at families, businesses, and social mobility. Among these is a targeted increase in children's allowance, with families earning less than €40,000 set to receive at least €250 more per child over the course of the legislature. This builds on previous tax cuts, which Abela described as the most significant in recent years, particularly benefiting middle-income households.
Further support is planned through enhancements to the in-work benefit scheme. Families already benefiting would see an increase of at least €150 per child, while couples with a single working parent would receive an additional €100. These measures indicate a continued focus on making employment pay, particularly for households that may struggle to balance work and family responsibilities, Abela said.
On the business side, Labour is proposing a reduction in corporate tax rates for smaller companies. Enterprises with an annual turnover of less than €1 million would be taxed at 25% instead of the usual 35%, provided they employ people in Malta. Abela described small businesses as the backbone of the national economy, and the tax cut appears intended to sustain their competitiveness while encouraging job creation.
Housing, another persistent concern, is to be addressed by a Labour government through adjustments to the social housing benefit scheme. Individuals who become ineligible due to increased income would not see support withdrawn abruptly. Instead, the benefit would taper off gradually over two years - reduced by 50% in the first year and a further 25% in the second - allowing for a smoother transition and reducing the risk of financial strain as incomes rise.
Abela concluded by urging voters to carefully assess the PL's proposals and their impact on quality of life, emphasising the importance of the 30 May election and its consequences for Malta's future.
The conference also featured addresses by Labour MP Ramona Attard and Finance Minister Clyde Caruana.