Parents should get €2,500 for second child and €3,500 for third, UĦM says
Union lays out proposals ahead of Budget 2026, backing year long parental leave
One-time payments for having a second and third child should be increased to help boost Malta’s fertility rate, according to UĦM – Voice of the Workers.
The proposal, which would increase the payments to €2,500 for the second child and €3,500 for the third child – is part of the union’s 29 budget proposals for 2026 presented on Thursday morning.
Currently parents are given €1,000 for a second child and €1,500 for a third, a payment introduced in last year's budget.
UĦM also joined calls to extend paid parental leave to a year, with the 12 months being shared between the two parents.
The union’s CEO, Josef Vella, said that while Malta’s economy had expanded and grown stronger, growth on its own did not guarantee justice, resilience or dignity at the workplace.
Vella described Malta’s changing demographics and low birthrate as a red flag, citing a report earlier this year by professors Anna Borg and Prof Liberato Camilleri that predicted that in 50 years, the Maltese population would be just 240,000, of whom 40 per cent would be elderly.
“Maltese politicians have always viewed this as a distant problem. 50 years may seem like a long way off, but it translates to 10 more elections,” he said.
UĦM CEO Josef Vella. Photo: Jonathan Borg.Extending paid parental leave, he said, was a way to encourage people to start a family, over and above financial incentives.
The union is also proposing that such leave should be paid in full for 18 weeks by the employer, rather than the current 14 weeks.
Furthermore, parents wishing to work reduced hours should be paid at a full-time rate, while women wishing to become mothers should not be punished with restricted opportunities for promotions and career progression.
Another set of proposals focuses on working conditions and workers’ rights. Double pay on Sundays should be guaranteed, while Vella reiterated the union’s proposal to introduce a four-day work week.
“Many people laughed when we first floated the proposal, but if we want to give parents more time then we seriously need to consider this measure,” he said.
Other proposals concern pension reforms, fair pay for employees of contractors and transport for workers on industrial estates.