Workers in non-managerial positions whose income does not exceed €20,000 a year will be taxed 15% on the first €10,000 they make from overtime pay.

The tax rate on part-time workers will also be reduced from 15% to 10%, which is set to impact some 23,000 workers.

Some €6 million is being allocated to the measure and will benefit 30,000 people.

The tax refund cheques will again increase from €45 and €95 to between €60 and €140, with the highest returns being paid out to people in lower income brackets. Some 250,000 people will benefit from this increase to the tune of €24 million.

Free childcare services will also be extended to evenings and weekends on a shift basis.

In the wake of employers reporting an exodus of foreign workers and restaurants reporting a staffing crisis during the COVID-19 pandemic, Caruana’s social measures may well be geared to encourage more locals into manufacturing and hospitality jobs.

The threshold of in-work benefits paid to parents who have children under the age of 23 has been raised from €35,000 to €50,000 for couples who both work.

Revised rates will see some 7,000 families benefit from the scheme, which has also been increased by €100, for a total of €200 per child every year.

For couples where only one of the parents is employed, the threshold for income was raised from €26,000 to €35,000, while the threshold for single parents was raised from €23,000 to €35,000 per annum.

The widening of the catchment for the benefit was one of several social-focused measures announced by Finance Minister Clyde Caruana who delivered the budget for 2022 on Monday.

New benefits for workers who work atypical hours

Caruana also announced the introduction of a new in-work benefit for workers who have atypical hours, including people who work evenings and weekends in the accommodation, food service, administration, manufacturing, transport, wholesale and retail industries.

Workers who earn up to €20,000 a year will receive €150 as long as they have worked at least six months in the calendar year.

Some 40,000 workers are eligible for the benefit, with €6 million allocated to the scheme.

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