• €1,500 one-time payment for third and every subsequent child
• Marriage payment to rise by €170
• Child allowance to rise by €250 per child
• Live-in carers allowance to rise by €500 a year

Parents who decide to have a third child will receive a one-time grant of €1,500, Clyde Caruana announced in Monday's budget speech.

The measure expands upon the existing grants of €500 and €1,000 for the first and second children, respectively, the Finance Minister said.

Parents will get the €1,500 baby bonus for the third and every subsequent child that is born or adopted.

The grant is intended to encourage people to have more children, possibly in a bid to address the country's alarmingly low fertility rate.

The existing children's allowance for all children will also rise, by €250 per child.

Malta has the lowest fertility rate in the EU, with women, on average, giving birth once in their lifetime. While Malta’s birth rate is 1.08, France has a fertility rate of 1.79 live births per woman.

More money if you get married

On Monday Caruana also announced that couples will get a higher marriage allowance when they tie the knot.

The one-time allowance will increase by €170, which means each partner will receive €500 when they get married - €1,000 per couple.

The weekly allowance for foster parents will also increase by €10 per week, totalling €120 per week, meaning €6,240 annually for each fostered child.

Meanwhile, prospective parents undergoing IVF treatment will get 100 hours of paid leave for each IVF cycle. The prospective mother will be given 60 hours while the other partner is entitled to the remaining 40 hours.

The allowance for children with disability allowance will also increase by €5 per week to reach €35 per week, marking the fourth increase since 2014 and affecting 2,510 children.

Another welfare budget measure includes parents whose children attend specialized therapy. They will see a tax credit increase of €250.

Furthermore, the live-in carer allowance will be increased by €500 annually, Caruana said, rising from €8,000 to €8,500 annually.

The scheme was first introduced in 2015 to tackle waiting lists in government homes and it has been extended ever since.