The Maltese government has announced a landmark allocation of €1.6 billion for pensions and social benefits in 2025. This substantial investment is a clear demonstration of the government’s commitment to addressing the needs of families, pensioners, and vulnerable individuals amidst evolving social and economic challenges.
Families benefit through Malta’s 2025 budget, including those with low and average incomes, have increased significantly. Investments in family-oriented measures have tripled, rising from €50 million in 2013 to €152 million this year.
The Ministry for Social Policy, Minister Falzon said these benefits will set “an all-time record,” emphasising the government’s commitment to easing economic pressures on families through targeted support measures. This highlights the government’s commitment to addressing social realities and supporting the most vulnerable members of society.
Key Benefits for Families in Malta’s 2025 Budget
Malta’s 2025 budget includes a variety of measures tailored to support families in different situations, depending on factors such as the number of children and the parents’ marital and employment status. Here’s a breakdown of the primary initiatives:
Annual Child Supplement
The annual child supplement has been increased by €250 for the second year running.
- Families earning more than €27,434 annually will receive €640 per child per year.
- Families earning less than €27,434 annually will receive €660 per child per year.
Payments will be made quarterly, totalling €160 or €165 every 13 weeks, depending on eligibility.
Arbejdsmarkedsydelse
The In-Work Benefit is designed to assist families where parents are employed, with eligibility and payment rates determined by income and family structure:
- Single parents earning €6,600 to €23,000 can receive up to €1,550 per child annually. Those earning between €23,001 and €35,000 will automatically receive €250 per child annually.
- Couples where both parents work and earn €10,000 to €35,000 (with at least one earning a minimum of €3,000) can also receive up to €1,550 per child annually. For incomes between €35,001 and €50,000, the benefit is €250 per child, processed automatically.
- Couples with one working parent earning €6,600 to €26,000 can receive up to €780 per child annually, while those earning €26,001 to €35,000 will receive €250 per child, with no application needed.
Support for Parents with Children in Post-Secondary Education
Families with children enrolled in post-secondary education will benefit from a special allowance of €500 per child annually, helping to ease the financial burden of further education.
Additional Measures for Families
Welcoming New Arrivals
To support growing families, the government has updated the birth bonus, maintaining support levels for the first and second children while enhancing benefits for larger families. A bonus is paid to mothers or adoptive parents if they are Maltese, from a European Union country, or married to or cohabiting with a Maltese or European Union national.
- €500 for the first child
- €1,000 for the second child
- €1,500 for the third and subsequent children (increased).
These bonuses will be paid directly to parents to help with the immediate costs of welcoming a new child.
Additional Cost-of-Living Allowance
The additional cost-of-living allowance (introduced to cushion inflationary pressures,) will continue. Payments are adjusted based on household income and size, with larger families and those on lower incomes receiving the support.
The additional COLA is calculated by assessing what the COLA would be if it were based on the expenditure patterns of low-income families or pensioners. If this alternative calculation results in a higher amount than the standard COLA, the difference is added as a supplement to the Cost of Living Benefit. The last instalment was issued in December 2024, and the next is scheduled for mid-2025.
Automatic Processing of Benefits
To simplify access, many benefits will be processed automatically for eligible families. For example, those qualifying for the €250 rate under the In-Work Benefit, based on declared income, will not need to apply. Similarly, the Children’s Allowance and other targeted measures use existing income data to ensure seamless distribution without the need for additional paperwork.
An additional update to Malta’s 2025 budget is the exclusion of social security contributions and income tax from the calculation of Children’s Allowance and In-Work Benefit payments. This change enables families to access higher payment rates while simplifying eligibility criteria. This streamlined approach is designed to minimise administrative burden and ensure timely support for households.
Summary of Malta’s 2025 Budget
In 2025, the government has allocated nearly €1.6 billion to social benefits, reaffirming its commitment to supporting families, pensioners, and individuals with limited incomes. This comprehensive budget addresses rising living costs while offering targeted support to ensure that all families, regardless of their structure or income level, have access to the help they need.
Further Reading
Maltas budget 2025 - de vigtigste højdepunkter
Velkommen til 2025: Vigtige opdateringer for expats på Malta
Malta sammenlignet med Europa: Prisbillig bolig med usædvanlige standarder
English 
Danish 
French 
German