Leading poverty researcher calls for minimum wage increase

"Rather than focusing on reducing the income tax rate from 32% to 29% for those earning between €19,501 and €60,000, the government should have implemented family-friendly measures to help those families living on the minimum wage," Leonid McKay, leading researcher within the social sector and MCAST Health and Social Care lecturer said to Illum.

In an exclusive interview with the Sunday newspaper McKay said the budget included positive measures but emphasised that fearing the economy would collapse, the government failed to address those issues pertinent to minimum wage earners.

As such, McKay said, the government should increase the minimum wage from the current €158 to €180 weekly.

"This proposal is supported by a detailed analysis and serious studies. Moreover, economists have substantiated the claim for an increase in the minimum wage, saying the increase would not collapse the economy."

"Conversely, an increase would encourage people to enter the work industry rather than stay dependent on the welfare state."

McKay, who forms part of the Caritas research and policy unit said that "the state has the ultimate responsibility to eliminate poverty."

On poverty in Malta, the leading researcher said it is wrong to compare it with poverty in Africa.

"While poverty in Africa is characterised by misery, poverty in Malta is more associated with people living below the poverty line and those risking social exclusion."

Nevertheless, he said, that there are many Maltese people who are in reality, living in poverty, some of which do not earn enough money to pay their utility bills or to adequately heat their homes.

Read more in today's edition of Illum.