Budget 2026: Social security paid before age of 18 can contribute to pensions
Measure designed to help those with lower social security contributions
Social security contributions made before the age of 18 can now count towards pension contributions.
Finance Minister Clyde Caruana said the measure is designed to help those with lower social security contributions to still hit the minimum of 10 years’ of work needed to qualify for a pension.
To give people with fewer contributions the same opportunity to qualify for a minimum pension, the law will be amended so that the minimum of 10 years of social security contributions applies to everyone, regardless of birth year.
This will include if necessary, social security contributions paid before the age of 18.
Momentum had previously called for social contributions from those aged 16 to 18 to count towards their pension, claiming the current system was a form of age discrimination.
Employed and self-employed people will also be able to top-up their social security contributions to make up for any “missing" contributions
The scheme allows payment for a maximum of 5 years of contributions as long as the person is still working and aged between 59 and 64.
This will allow workers to ultimately improve the amount they receive from their pension.
Self-employed people who paid lower social security contributions during the COVID-19 pandemic will be given a concession to allow themselves to “regularise” their position.