Trade unions and organisations have begun reacting to Budget 2027, highlighting measures they welcomed while raising concerns about areas they believe require further attention.
The Malta Chamber of Commerce, Enterprise and Industry said Budget 2027 supports families and pensioners but falls short of outlining how the government intends to transform Malta's economy and address productivity and competitiveness.
The Chamber welcomed reduced income tax for families and higher pensions, as well as increased tourism-related charges, provided the revenue is reinvested in improving tourism and localities. However, it said corporate tax should have been reduced to 25% for all businesses, with a lower rate for fully compliant companies.
It expressed concern over higher work permit fees for foreign workers, saying these appeared more focused on generating government revenue than encouraging productivity. The Chamber also noted a lack of clarity on incentives for businesses to invest in digitalisation, automation and modernisation.
The Chamber said Malta's economic growth remained heavily dependent on increased employment rather than productivity improvements, warning that rising labour costs were affecting business competitiveness.
It also criticised the absence of measures addressing traffic congestion, which it estimated cost the economy €770 million in 2025, as well as insufficient action on renewable energy, infrastructure, education, skills and bureaucracy.
The Chamber called for stronger incentives for business internationalisation, improved public sector efficiency and a clearer long-term economic strategy, saying the Budget lacked detail on how the country's structural challenges would be addressed.
The Malta Union of Teachers (MUT) said that Budget 2027 includes measures supporting families and students, but fails to address the role of educators or introduce improvements to support services and wellbeing in the education sector.
In its initial reaction to the Budget, the union welcomed continued assistance for families with children in post-secondary education, as well as measures intended to improve access to post-secondary and tertiary education for children in alternative care.
The MUT also noted the reduction in taxes for families and the government's commitment to continued investment in school facilities, human resources and resources for students.
However, the union said the Budget did not include measures to strengthen educational support services or improve wellbeing, both of which it described as essential to the sector.
The MUT said it would await the publication of the Budget estimates in the coming days to better understand how the announced investment would translate into measures within the education sector.
The General Workers' Union (GWU) welcomed several measures in Budget 2027 aimed at strengthening social protection and safeguarding purchasing power, while calling for further improvements in working conditions and quality of life.
The union welcomed the Super Bonus of up to €1,000, the €6.41 weekly cost-of-living adjustment (COLA), the €10.41 weekly increase in the national minimum wage, including COLA, and the continuation of the Additional COLA Mechanism.
It also welcomed the €10 weekly pension increase, continued energy subsidies, higher Carers Grants, improved adoption benefits, additional assistance for home carers and the continuation of free childcare.
However, the GWU said further action was needed to address housing costs, traffic congestion and pressure on public services, alongside investment in training and skills development.
The union also expressed concern over the removal of free public transport for third-country nationals, particularly low-income workers who rely on buses to commute.
It said it had begun contacting companies involved in recruiting third-country workers to explore solutions, including the possibility of employers covering part of their transport costs.
The GWU said economic growth and productivity improvements must translate into better wages and working conditions. Its National Council will issue an official position following a more detailed assessment of the Budget.
FORUM Unions Maltin (FOR.U.M.) welcomed measures supporting workers and families, including the super bonus, cost-of-living adjustment, further tax reductions for parents and continued energy subsidies.
However, the confederation said employees' wellbeing depended on more than disposable income, calling for clear policies, adequate staffing and meaningful improvements in essential services.
It said investment in personnel and facilities must translate into better services, shorter waiting times and improved working conditions for employees.
FOR.U.M. also expressed concern that higher charges and reduced access to transport and childcare for some non-EU workers could place additional pressure on workers and their families.
The confederation said all workers contributed to Malta's economy and deserved fair treatment, adding that changes to the economic model should not come at the expense of the most vulnerable employees.
While noting the government's environmental investment, FOR.U.M. said this needed to be accompanied by effective planning enforcement and protection of open spaces, addressing the daily impact of traffic and construction on communities.
It also called for meaningful consultation with trade unions throughout the implementation of the Budget, to ensure economic growth translated into fair wages, strong public services and a better quality of life.
The Union of Professional Educators (UPE) expressed disappointment at the government's failure to fulfil contractual commitments made to educators since 2017, calling for Budget 2027 to provide the necessary funding and clear implementation deadlines.
The union proposed establishing a permanent education think tank involving the Ministry, unions and school practitioners to address outstanding commitments, including classroom support for teachers, Kindergarten Educators and Learning Support Educators.
UPE also called for effective air conditioning in all occupied school areas, updated safety assessments and regular maintenance, as well as functioning lifts with reliable maintenance arrangements to ensure accessibility.
The union proposed a feasibility study on establishing trade schools in Malta and Gozo, incorporating technology, artificial intelligence, financial services and practical trades.
It also called for a student behaviour framework developed in consultation with educators, with clear responsibilities for handling serious incidents and specialist duties assigned to appropriately trained personnel rather than teachers.
NGO TCN Alliance expressed strong disapproval of Budget 2027, describing measures affecting third-country nationals as discriminatory and calling on the government to reconsider them.
The organisation said Malta's economy depended heavily on third-country workers across sectors including tourism, construction, healthcare and transport, but many already faced rising rents, stagnant wages and difficulties asserting their rights.
It criticised the removal of free public transport, which it said would now cost €33 monthly, a new €83 monthly charge related to driving, increases of €400 and €600 in work permit renewal and application fees respectively, and the removal of the €150 annual atypical working hours benefit.
TCN Alliance said these measures would place further financial pressure on workers already struggling with the cost of living, while creating what it described as a two-tier system between third-country nationals and Maltese and EU workers.
The organisation called on the government to reverse the measures, and encouraged supporters to wear green ribbons between 16 and 20 November to raise awareness of third-country workers' rights.
TCN Alliance said it was considering further action against policies it regarded as discriminatory.