Budget 2025: Up to €100 monthly for public sector workers’ occupational pensions

The government will be contributing up to a maximum of €100 a month for public sector workers investing in an occupation pension plan.

Finance minister Clyde Caruana said it will contribute directly as an employer, by paying as much as the individual contributes up to a maximum of €100 per month.

“This plan will benefit from the same tax incentives that exist today, both for the employer and the employee,” Caruana said.

Those who are already in a private plan, can also join an occupational plan and benefit from the same schedule of tax benefits – which amount to a maximum of €750 annually in tax rebates.

Details of the occupational plan for public sector workers will be hammered out with social partners, to roll out the occupational pension plan by mid-2025.

“This government does not only take care of families’ incomes in the present, but also caters for the future. That is why we must foster a culture of savings, ensuring a more adequate pensionable income for the pensioners of tomorrow,” Caruana said.

Government had already launched tax incentives to encourage people to invest in a private pension plan. “Now is the time to strongly encourage occupational pension plans in our country. This is in the interest of workers and to have more and more sustainable and adequate pensions.

“The ultimate intention is that every employee entering the world of work or changing jobs will have the opportunity to invest in an occupational pension plan. While employers will not be obliged to contribute, they must offer their employees the opportunity to join a plan. It is up to the employee to refuse to do so.”