As Malta heads into the final month of 2025, a series of family benefits payments are scheduled to reach households just before the holidays. With the continuation of the additional cost-of-living mechanism, higher children’s allowance rates, updated income thresholds and an improved birth bonus, December will be an important month for eligible families preparing their budgets for the year ahead. This article provides a clear overview of what to expect and how each measure fits into the wider Budget 2026 framework.
Additional Cost-of-Living Supplement: First Payment in December, Second by June 2026
The additional cost-of-living supplement, first introduced in 2023 and confirmed to continue in the 2026 Budget, will once again support low and middle-income households. Eligibility continues to be determined automatically based on tax and social security data.
Key points:
- First instalment expected in December 2025
- Second instalment paid by June 2026
Payments vary based on household income and composition, ranging between €100 et €1,500 per year. This additional cost-of-living benefit is calculated and paid automatically by the Department of Social Security, and is not taxable. First top-up arrives at an important moment, just before Christmas, providing meaningful financial relief for families managing year-end expenses.
Children’s Allowance: December Payment Will Reflect 2026 Increases
The children’s allowance is paid every 13 weeks in advance, and the December 2025 payout will be the first to include the updated Budget 2026 rates.
Budget 2026 introduces two major adjustments:
- €250 annual increase per child for families with income below €30,000
- Additional €167 per child for families with income below €23,000
These increases will begin to apply with the December 2025 payment, as that quarterly instalment covers part of the 2026 benefit year.
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Higher Income Threshold
One of the most significant changes is the rise in the income threshold for enhanced rates:
- Previous threshold: €27,434
- New threshold for 2026: €30,000
This means families earning up to €30,000, many of whom previously fell just beyond eligibility, will now qualify for improved rates starting with the December payment. Since 2025, income for Children’s Allowance and the In-Work Benefit is assessed on earnings after deducting social security contributions and income tax, which helps more families qualify for higher rates.
Children’s allowance is typically deposited during the second week of December, with funds often appearing on a Thursday or Friday, depending on that year’s social security calendar.
Birth and Adoption Bonus: Higher Support
If your child is due in December 2025, the birth bonus you receive will reflect the new 2026 rates. Parents welcoming a first, second or third child at the end of the year will still benefit from the increased amounts, as updated family support measures are normally applied from the December payment cycle. This means €1,000 for a first child, €1,500 for a second child and €2,000 for a third or subsequent child, giving families stronger support right from the start. Adoption-related assistance follows the same approach, with higher reimbursements and easier access for both local and international adoptions, ensuring families receive the help they need as they grow.
Additional Family-Related Benefits
Families should also be aware of several ongoing forms of support that continue to help households throughout the year. Eligible working parents may receive an additional €75 per child to the annual Prestations en cours d'emploi amount (payable every three months, starting with increased amount in January 2026 for elidable families), while families raising children with disabilities can benefit from annual therapy refunds of up to €1,000 per child, with support now extended until age 23.
Le fostering allowance is also being improved, rising from €6,240 à €6,760 per year, equivalent to an increase of €10 per week. In line with how family benefit adjustments are usually implemented, foster carers are expected to see the updated €6,760 rate reflected from the first payments linked to the 2026 benefit year, including the December 2025 payment cycle.
Preparing for the Year Ahead
December 2025 will deliver substantial financial support to eligible families, marking the first implementation phase of the Budget 2026 measures. With an enhanced additional cost-of-living supplement, higher children’s allowance, broader income thresholds and increased birth bonuses, these policies aim to strengthen household finances at a time of year when expenses naturally peak.
Because many of the thresholds and benefits interact with tax bands, employment income and residency status, families should review their position to understand how the new measures apply.
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