Social welfare agency failed to pay NI for 400 employees between 2000 and 2007

Around 400 employees working at the Foundation for Social Welfare Services (FSWS) found that their social security contributions were not paid by their employer despite the amounts being deducted from their salary.

According to Voice of the Workers Weekly, a news bulletin belonging to Union Ħaddiema Magħqudin (UĦM), several employees discovered that their social security contributions weren't being paid after they reached retirement age and discovered that they did not qualify for the amount they were supposed to be entitled for. 

A preliminary investigation by the bulletin estimates the value of the missing contributions to be worth close to €10 million. 

This was later confirmed by Alfred Grixti, the Chief Executive Officer at FSWS. In a email circulated to all FSWS employees, he explained that all employees in the foundation between 2000 and 2007 were affected. From the 399 employees concerned, 191 have rectified their position administratively with the Department for Social Security while 208 are still to have their position rectified. 

All NI contributions of FSWS employees from 2008 onwards have been paid in full.

"As CEO and Senior Management we can assure you that we are committed to rectifying the situation of these 208 employees such that none of their pension and / or social security benefits rights will be negatively impacted in any way. This is also the position of the Ministry," the email reads.

During the period in question, Joseph Gerada was the CEO of FSWS. Today, he is the chairperson on the foundation's board.