Budget 2026: Pensions to increase by €10 per week, carer grant to rise
100,000 pensioners set to benefit
Pensions are to increase by €10 weekly, in a budget measure that is set to benefit 100,000 pensioners.
Those on a widow’s pension will receive an extra €3.50 per week on average, over and above the €10 increase.
Married couples receiving reduced pensions because both spouses get a pension will get an increase of between €2 and €14 per week.
Those with a service pension will see an increase of €200 in their commuted pension, bringing it up to €3,866.
People not eligible for a pension will receive a €50 increase in their annual bonus. This bonus will vary from €600 to €1,050.
Finance Minister Clyde Caruana said that as from next year, double the maximum pension amount will be exempt from income tax, including for pensioners who continue to work.
Widows and widowers will remain exempt from paying income tax.
The carer’s grant will increase by €179.24, bringing it up to €5,368.89 starting from 2026. The grant is given to people who provide full-time care to a close family member, typically someone who is elderly, ill, or has a disability, and who would otherwise need institutional care.
The grant for elderly people opting to hire a live-in carer is set to increase by €500, taking it up to €9,000 yearly.
There have been calls to raise the subsidies for live-in carers to allow families to offer better pay amid a chronic shortage, in the hopes of helping Malta compete with countries like the UK.