Malta Miegħek puts support into people’s hands

A budget is ultimately judged not by the size of its tables but by what it means for people; the worker planning a household budget, the pensioner managing weekly expenses, the parent paying for education, and the family caring for a child with a disability. That is the spirit captured by the budget’s title, Malta Miegħek (Malta With You). It continues to protect household incomes, strengthen support where needs are greatest and invest in opportunities for the years ahead.

The central promise is clear. Eligible workers who earned at least €12,000 in 2025 will receive a tax-free €1,000 super bonus in the first quarter of 2027. Those with lower employment income will receive a pro-rata payment, starting at €500 for earnings between €2,000 and €5,999. The measure also covers self-employed people, working pensioners and part-time workers. This is a direct payment to people who contributed through work, and it fulfils a commitment made to the electorate. The Nationalist Party said the government would not keep this promise. Malta Miegħek answers with the measure itself. People can judge that claim against what is now on page.

The value of the measure lies in both its scale and reach. A payment of this size can help meet a large bill, clear an expense or give a family more room to plan. By extending the bonus to people with different forms of employment, the policy recognises that contribution to the economy does not take only one form.

Relief that reaches households

The super bonus sits alongside the €6.41 weekly cost-of-living adjustment. For lower and middle-income households, the additional COLA mechanism will provide between €200 and €1,500 a year, depending on disposable income and family size. More than 100,000 households are expected to benefit. These measures respond to the continuing pressure of living costs while directing additional help according to need.

Government will also maintain stable electricity, gas and fuel prices. The budget allocates around €400 million for energy subsidies in 2027. These subsidies have a real impact on the cost of running a household and a business, and on the prices, people encounter across the economy. Stability in energy costs gives families more certainty and helps local businesses plan, employ and invest.

The national minimum wage will rise by €10.41 per week in 2027, including COLA, under the agreement reached between the government and the social partners in 2023. The minimum wage remains income-tax free. This is a practical example of social dialogue producing an agreed path for improving pay, while preserving a clear commitment to workers on the lowest wages.

Families, pensioners and carers

Families with children will receive the second stage of the three-year income tax reduction. In 2027, the tax-free threshold for parents with two or more children will rise to €24,000; it is scheduled to reach €30,000 in 2028. For married couples with two or more children, the threshold will rise to €30,000 in 2027 and €37,000 the following year. This leaves more of a family’s earnings in its own hands and makes the tax system more responsive to the costs of raising children.

Pensioners will receive a €10 weekly pension increase, inclusive of COLA. The income threshold at which pension income becomes taxable will rise by €520 to €37,624 a year. The budget also allows, under defined conditions, the transfer of social security contributions between spouses so that a spouse without a pension can qualify. Around 3,200 women are expected to benefit from this next step, building on earlier measures that have already enabled married women to receive a pension in their own right.

Support for people who provide care is also being strengthened. The Carers’ Grant will increase to €7,500 a year as the first step towards the government’s commitment to align it with the net minimum wage. Parents who work up to 20 hours a week will also be able to receive the grant at the existing half-rate. The Carer at Home benefit for pensioners employing a full-time carer will rise by €800 to €9,800 a year. Families adopting children from abroad will receive an additional €1,000 in reimbursement, taking the grant to €13,000 next year.

For children with disabilities under 18, government will meet the costs of required therapies. Early access to therapy can support a child’s development and participation, while reducing the financial strain on parents. This commitment recognises that families should not have to choose between a child’s needs and the household’s ability to meet other essential costs.

Investing with responsibility

These measures are being introduced alongside a commitment to responsible public finances. The budget keeps the deficit forecast at 2.6% of GDP in 2027, below the EU’s 3% reference level, while continuing targeted support and investment. Responsible budgeting matters because it helps preserve the capacity to respond when people and businesses face external shocks.

As minister responsible for European funds, I see that responsibility also in how we turn resources into lasting improvements. Around €390 million of next year’s capital expenditure is expected to come from European Union funds, €90 million more than in 2026. These resources help finance projects that improve infrastructure and public services, and they allow Malta to pursue national priorities through a wider European investment framework. Our task is to make sure that funding is translated into projects that deliver measurable value for people and communities.

Dialogue and trust

My other responsibilities are closely connected to the choices in this budget. Social dialogue is not a formality. It is how government, employers and workers can reach workable agreements and address change together. The minimum wage agreement is one example. The planned reappointment of the Low Wage Commission will give the social partners a forum to agree the path for the minimum wage from 2028 onwards.

Consumer protection is equally connected to household security. Stable energy prices help protect consumers from sharp external increases. Fair and consistent rules also matter, which is why the budget includes work on clearer guidance for the VAT exemption on food, so businesses receive consistent treatment and consumers benefit from a fair market. Clear rules and effective enforcement protect people who act responsibly and help build confidence in the marketplace.

Malta Miegħek is a commitment to keep practical support close to people while investing in the systems and relationships that help the country move forward. Its measures are practical, targeted and linked to commitments made. From the super bonus to stronger support for carers, from European investment to agreements reached through social dialogue, the objective is to protect people’s quality of life today and expand Malta’s opportunities for tomorrow.