Workers will as of January be receiving an additional €1.75 a week as part of an automatically-calculated cost-of-living adjustment (COLA) which is intended to combat the impacts of inflation. In 2020, COLA reached €3.49 a week.

Finance Minister Clyde Caruana also announced in the budget speech that he will hold talks on a new mechanism to come into force independently of the Cost of Living Adjustment through which the government will give additional assistance for vulnerable people and families when inflation is high.

“The cost of living is a reality that this government will not only be afraid to talk about but we will see how to address it to protect those families that are most vulnerable to inflation. I consider this challenge a priority,” he said.

He added that he will meet stakeholders in the coming days to start discussing this new mechanism that works independently of the cost of living adjustment in circumstances where inflation is rising. He said the cost will be borne entirely by the government.