Social partners agree on need for flexible retirement incentives

Social partners support flexible retirement among other measures aimed at addressing labour shortages.

Incentives for people over 61 years old were among the subjects discussed during a Malta Council for Economic and Social Development (MCESD) council meeting, where the Malta Chamber and the General Workers’ Union (GWU) presented research on active ageing.

The research showed projections indicating that Malta’s old-age dependency will accelerate when compared to other EU countries. The study also prompted a call for further analysis and identification of economic and social sectors likely to engage 65-74-year-olds actively.

Advisor to the GWU, David Spiteri Gingell, stressed the importance of flexible retirement, proposing the decoupling of work withdrawal and pension commencement to extend the transition period between careers. 

The joint proposal from GWU and the Malta Chamber aimed to address the employee shortage by suggesting part-time work options for individuals aged 61 and above. 

Malta’s low fertility rates were also brought up during the meeting, as those present discussed strategies to address this pressing issue. Fiscal incentives, the avoidance of imposing active ageing, and recognizing the resource potential of older workers were highlighted as considerations.

The Central Bank of Malta emphasized the need for discussions on fiscal impacts, while the Maltese Council for the Elderly expressed satisfaction with the discussion, sharing comments on the presented research.

Parliamentary secretary for social dialogue, Andy Ellul thanked the MCESD for its work throughout 2023 and outlined impactful initiatives for 2024. These include launching an entity for public consultation on EU-related matters, addressing workplace democracy, green collective bargaining, AI in the workplace, and union membership for low-wage earners. 

The focus on motivating and supporting society and companies adhering to ESG principles aligns with the MCESD's commitment to addressing diverse challenges and societal priorities in the coming year.