Budget 2027 | Pensions to increase by €10 a week

Pensioners will have an added €10 in their pocket a week starting January.

The measure will act as a first step toward the €50 a week promised by the Labour Party during the election campaign.

The rise includes the cost-of-living adjustment (COLA) and applies to retirement, invalidity, widows', along with age pensions.

During Monday’s budget speech, Finance Minister Clyde Caruana said workers who have yet to retire can rest assured that neither the retirement age nor social security contribution rates will go up.

Bonus and tax

In 2027, every pensioner will receive the same cost-of-living bonus of €21.53 a week, whatever year they retired. Pension income will be tax-free up to €37,624 a year, a rise of €520.

Pensionable income

The maximum pensionable income for pensioners born before 1962 will rise to €28,000. About 15,000 pensioners, including widows, will benefit. The minister said the anomaly will be removed completely by 2028.

Widows

More than 7,000 widows will get another increase next year, and all widows will then receive the full two-thirds pension.

People without enough contributions

The bonus for people who do not qualify for a pension because they lack enough contributions will rise by €333.32 a year. It will range between €933 and €1,383 a year. The minister said it mostly affects married women.

Service pensions

The amount of service pension not counted against the social security pension will start rising by €300 a year, instead of €200. For service pensioners who reach 72, the whole commuted amount will be ignored.

Former members of the disciplined corps who get a service pension but no social security pension will see their bonus rise by €520 a year.

Pensioners with disability

Pensioners who used to receive a disability benefit are now paid 10% of it. Next year this will rise to 20%, and the minister said it will eventually reach 50%.