Wage adjustments given to low-income earners and pensioners to compensate for the rising cost of living should be given twice a year, rather than being tied to the government’s annual budget, the ADPD has suggested.
Malta’s green party argued that awarding cost-of-living-adjustment (COLA) wage increases mid-year would significantly help low-income earners get by during times of high inflation.
Concerns about the rising price of goods and services have ramped up in recent weeks, after official data showed that food prices have been rising significantly.
Church organisations worried
Church organisations said on Saturday that they were seriously concerned about rising prices, warning that many people living in “hidden poverty” would be seriously impacted by rising prices.
The organisations said that they were committed to help such families as much as possible and urged authorities to give “absolute priority” to those who faced ruin by the prospect of further price inflation.
ADPD pushes for COLA change
The ADPD also noted that it was low-income earners who faced the greatest hardship. The party has spoken previously about the need to increase Malta's minimum wage and revise the way in which inflation is calculated.
Speaking at a press conference in Ħamrun on Saturday, ADPD chairperson Carmel Cacopardo and deputy secretary general Sandra Gauci made their case for revisions to the existing COLA mechanism.
Cacopardo said COLA increases should not be allowed to accumulate throughout the year, to be paid out the following January. Pensioners and low-income earners should instead receive the top-up once in June and once at the end of the year.
Gauci argued that low-income earners were disproportionately affected by rising prices, which have also hit items such as nappies and milk powder.
“Although government cannot control what happens abroad it can take the required mitigating measures in Malta,” she said.
Citizens were being insulted, she said, when they were given a €1.75 weekly COLA increase while others, such as Foundation for Medical Services CEO Carmen Ciantar, received €163,000 contracts.
“We are insisting that in the present circumstances of spiralling costs of essential commodities the COLA increase should be awarded twice a year,” Gauci said.