Labour MEP Edward Scicluna to present paper on impact of parental leave during PL seminar tomorrow

MaltaToday has learnt that Labour MEP Edward Scicluna, an economist by profession, would be presenting a paper with the theme: “The Economic Impact of Parental Leave – An evaluation of the benefits and the costs”.

Besides Scicluna’s presentation, the programme will include a presentation by the Malta Business Bureau (MBB) followed by questions from the floor.

The Labour MEP’s paper was being presented as a discussion paper meant to enhance the policy debate in Malta with regards to benefits and costs of extending paid maternity, paternity or parental leave in Malta, based on the rich experience of other countries over the last 30 years or so.

Presently, Malta awarded 13 weeks of paid maternity leave, and two days of paid paternal leave.

A report by Edite Estrela (Socialists & Democrats) awaiting approval in the European Parliament (EP) submitted a proposal for extending minimum paid maternity leave from 14 to 20 weeks.

For fathers it proposed a minimum of two weeks paid leave. EU Member States would have three years to transpose it into national legislation.

The MBB report was the first and only impact assessment so far to be carried out in Malta on the proposed legislation.

The MBB report considered that possible economic benefits of these EP proposed legislative changes on the Maltese economy to be relatively marginal, given that there was already a significant amount of maternity leave being taken up, while the costs tended to increase per week of additional maternity leave granted, in an exponential manner.

The report considered the fact that the extension of maternity leave could even reduce the female employment rate which in Malta currently stands at a paltry 37.7% of the working age female population compared to an average of 58.6% in the EU.

The report claims that the proposed changes to the Directive would render female labour less competitive on the market-place for jobs and would overall lead to deteriorating employment prospects for everyone by increasing the costs of operation to business.

The MBB’s report indicated that increasing the maternity leave from the current 14 weeks to 20 weeks would potentially cost the economy €7.5 million worth of value added in a year, equivalent to 0.18% of GDP.

In addition, introducing two weeks of paternity leave would cost the economy another €4.8 million in terms of value added in a year, equivalent to 0.12% of GDP.