A total of 205,000 adults and children will benefit from an additional cost-of-living supplement which will be distributed in December and May, according to the Social Policy Ministry.

The amount of the grant ranges from €100 to a maximum of €1,500 over two payments, depending on the household wage and the size of the family.

The allowance will cost the government €45.5 million, according to financial estimates for the Social Policy Ministry. 

A 2024 Budget measure, it is expected to benefit 95,000 families in Malta. 

According to National Statistics Office data, there were 215,691 households in Malta in 2021. 

Details of the scheme were given by Mark Musu, the Social Policy permanent secretary, who broke down the way the payment works, who is eligible for it and how much families will receive. 

The decision to split the payment into two tranches is likely to draw criticism, as it means the second payment, in May, will be sent out just weeks before the European Parliament elections. 

When the government distributed cost-of-living payments to workers, pensioners and students before the 2022 general election, the finance minister had to fend off criticism that the government was effectively buying votes. 

A global election monitoring body later said the cheque distribution fell short of international standards.

How is the payment calculated?

The grant is based on the declared income of 2022 and the number of people in the household.

Musu explained that the benefit will be given to those who earn less than the median income, which stands at €18,155.

When there is more than one member in the family, the income is adjusted to the amount of people in the household.

For a couple, the amount is topped up by 50%. For every additional child, the amount is increased by a further 30%.

In simple terms, the bigger the family, the greater the benefit.

A family of two who earn €27,233 are eligible for the benefit.

“The benefit is being extended out, not just to those who are vulnerable or at risk of poverty,” Musu added. 

So, who is eligible? 

• If one person earns under €18,155, he is eligible for the grant.
• A couple who earns up to €27,233 is eligible for the grant.
• A family of three – a single parent with two children under the age of 14 is eligible for the benefit if they do not earn more than €32,679.
• A family of four is eligible for the benefit if it earns up to €38,126.
• A family of five is eligible if it receives up to €47,203 a year.

Musu explained there are currently 95,000 families – 205,000 people (including children) in Malta who will benefit from the grant as they have a low or medium income.

Out of this amount, 39,000 families (85,000 people) who are at risk of poverty, will benefit from the grant. 

“While the grant is mainly helping those who are most at risk, it will also be helping another 56,000 families that are not at risk of poverty or vulnerable,” Musu said. 

How much will you receive? 

The benefits, that range from €100 to €1,500, are calculated on two factors: 

• That the family's income in relation to the poverty line, which is 60% of the median income;
• The number of people in the family.

The lower the income, the more benefits the family receive, Musu explained. 

The measure uses a baseline of €2.91 a week, which is adjusted by how much income a person receives.

If Rachel receives €4,357 (which is under the poverty line) she will receive €378.30 in a year. 

In contrast, if Steve receives €18,155 (which is the median income) he will receive a minimum of €100.

If two pensioners receive €10,000 between them, they will receive a minimum grant of €467.

According to the ministry's figures, a family of five receiving €15,000 a year will get a grant of €1,376 a year. 

Largest budget in history for ministry 

Speaking during the press conference, Social Policy Minister Michael Falzon said the ministry has received the biggest budget in its history.

“This budget will see an investment of €2.2 billion in this ministry, which is responsible for the social sector of our country,” Falzon said. 

He said the government is investing around €150 million in benefits and noted that the government has invested in increasing the Cost-of-Living Adjustment (COLA) to €12.81 per week.

The minimum wage will increase from the current €192.73 to €213.54 a week in January.

“This shows that we are on the side of the people. This is a socialist budget; we need to help everyone and help those that need help,” Falzon said.