Budget 2027 must go beyond financial incentives on fertility, NCPE says

The National Commission for the Promotion of Equality (NCPE) has called on the government to address Malta’s persistently low fertility rate by prioritising stronger work-life balance measures in Budget 2027.

The commission referred to a recent Central Bank of Malta study which highlighted Malta’s fertility rate of 0.98 children per woman, the lowest in the EU.

Research carried out by the NCPE also found that, while both men and women would like to have more children, many are dissatisfied with the limited compensation and short duration offered under existing family leave arrangements.

The commission said difficulties in reconciling employment with family responsibilities remain one of the main barriers to having children in Malta.

It acknowledged that the government has sought to address the issue through previous budget measures offering financial incentives to families, including revised tax brackets and increased children’s allowances.

However, the NCPE argued that Budget 2027 must go further by addressing what it described as another crucial dimension of the problem: the ability of women and men to balance employment with family life.

According to its research, respondents expressed a clear need for longer and better-paid family leave, including maternity, paternity and parental leave, as well as dedicated leave for parents caring for sick children.

The commission therefore proposed extending maternity leave to six months, paternity leave to four weeks, and parental leave to six months on full pay, with three months allocated on a “use-it-or-lose-it” basis.

It also called for further government investment in childcare and the Klabb 3-16 service to make them more accessible and attractive to families.

The NCPE specifically proposed subsidising non-state schools to enable them to offer such services on school premises.

It also said that legal provisions and structures supporting work-life balance arrangements, including remote working and flexitime, should be strengthened and financially supported.

The commission argued that investing in an environment which better supports working families would strengthen the economy and improve its resilience.

Such measures, it said, would also promote gender equality by encouraging women and men to share caring and employment responsibilities more equitably, while improving families’ wellbeing.

The NCPE concluded by urging the government to take immediate action on Malta’s persistently low fertility rate to ensure that women and men who wish to have children are adequately supported in doing so.

“The choices being made by prospective parents, as reflected in Malta’s exceptionally low fertility rate, demonstrate the urgency of the situation,” it said.