MPs from both sides of the House have a report by the Malta Employers' Association that proposes reforming the retirement system to encourage people to continue working after reaching retirement age.
Active ageing junior minister Malcolm Paul Agius Galea said that Malta’s over-65 population still has a lot to give to the economy.
“Right now, around 10 per cent of those aged over 65 years old are working; this is a resource that is possibly being wasted,” the junior minister said with reference to those who retire.
He noted that the government had already introduced several measures to encourage people to stay in work and he said it would continue doing so based on the report’s recommendations.
The junior minister said an important element of the MEA report was that the proposals recommend voluntary incentives for senior workers to stay on.
His counterpart in the Nationalist Party, Paula Mifsud Bonnici, called for measures to encourage people to stay in employment.
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“Among other fiscal incentives, we are proposing that people who have paid enough National Insurance contributions can begin receiving their pension even as they stay in employment,” Mifsud Bonnici said.
The two MPs were speaking as the MEA report - Adapting our Labour Market to an Ageing Population - was unveiled on Tuesday.
The report is the product of a conference organised by the Malta Employers’ Association, which involved contributions from around 40 stakeholders.
The report notes that the working-age population (20-64) currently makes up two-thirds of the population. That is expected to fall to just over half of the population by 2070.
The demographic change can mean a potential reduction in Malta’s GDP growth and a particular strain on healthcare and tourism.
To mitigate these issues, the MEA report makes nine recommendations.
Among them is reforming the retirement system into “a flexible retirement framework to gradually transition from full-time work, including options for a part-time role, job-sharing and telecommuting”.
It also suggests enhancing tax incentives for employers who implement “age-friendly workplace modifications” and providing subsidies for training and upskilling programmes.
The MEA is also suggesting enhanced physical workplace environments to accommodate an ageing workforce.
Other proposals include incentivising digital training for older workers and providing regular health assessments and ergonomic training for employees.
The MEA says that a working group including the private sector and several ministries should oversee the implementation of these measures while the “effectiveness of these initiatives must be rigorously monitored and evaluated”.
See the report by clicking on the pdf document.