Minister for Social Policy and Children's Rights Michael Falzon on Tuesday said Budget 2027 is the government's ongoing commitment to social welfare and supporting pensioners, families, persons with disabilities, and vulnerable individuals.

Starting next January, pensioners in Malta will receive a weekly increase of €10, which includes the Cost of Living Adjustment (COLA). Minister Falzon noted that over the course of the current legislature, pensioners will see their weekly income rise by a total of €50. Additionally, the annual tax-free income threshold for pensions is being increased by €520, bringing the limit to €37,624 per year, the minister said.

A major highlight of the conference was a new social security contribution transfer measure originally announced by Finance Minister Clyde Caruana. Described by Minister Falzon as a revolutionary initiative backed by a €13 million investment, the measure will allow spouses, civil union partners, and registered cohabitants to transfer up to 260 social security contributions (equivalent to five years) to help a partner meet the 10-year contribution threshold required to qualify for a pension.

This step will enable approximately 3,200 women to receive a pension for the first time. Even if the total contributions fall short of 520, the transferred contributions will count toward increasing the rate of the Deficiency Contributory Bonus (DCB). Eligible individuals do not need to apply, as they will be notified directly by the Department of Social Security.

The Minister also outlined progress on completing full two-thirds pensions for widows and widowers, an initiative that will benefit over 7,000 people who are receiving an additional increase. Beneficiaries of the widow's pension will also be permitted to transfer contributions to further strengthen their pension entitlements.