The government is proposing a review of social benefits given to single parents in order to encourage them to combine work with family life.

"Our system may not be helping these persons sufficiently to encourage them to work or train themselves for suitable employment," the pre-budget document, issued this morning, says.

"It is therefore being proposed that Malta's social security entitlements for single parents be reviewed and carefully analysed. This analysis should also keep in view the Maltese socio-economic realities. For this purpose, an intra-ministerial working group shall be set up to carry out an in-depth analysis, primarily in terms of social changes, demographic projections and socio-economic and financial implications. Its objective would be to advise on the necessary changes to the current system."

The document also points out that social security provisions for the self-employed may be seen to exclude those persons working in limited, irregular and low-paid jobs such as domestic workers and carers, for whom the minimum national insurance payable may be seen as a deterrent.

Prior to 2007, any part-time employed person earning the National Minimum Wage was obliged to pay a minimum contribution of 10 per cent of the National Minimum Wage, even when the income from employment was less than this wage. In 2007 Government, acknowledging the importance of part-time employment in the emerging Maltese economy, decided to introduce the pro-rata contribution in respect of part-time employed persons earning less than the National Minimum Wage.

Through this measure, part-time employed persons can pay a pro-rata contribution equivalent to 10 per cent of their actual basic earnings instead of the minimum contribution based on the National Minimum Wage.

"It is being proposed that this pro-rata contribution system be extended to cover certain categories of self-employed persons such as students, who may carry out some self-employment activities during their studies, and pensioners," the document says.