Issue link: https://maltatoday.uberflip.com/i/1080741
NEWS 6 maltatoday | SUNDAY • 10 FEBRUARY 2019 CONTINUED FROM PAGE 1 Foreign contributors, which number over 50,000 contribu- tors, now account for 21% of all social security contributors and 17% of all paid contribu- tions. Moreover, the marginal in- crease in Maltese contribu- tors can be mostly accounted for by a 2,671 increase in the number of female contribu- tors. In fact, the number of male Maltese contributors has only increased by 165. These statistics confirm that males prevail among foreign- ers working in Malta since 61% of foreign contributors are male. While females ac- counted for 19,902 of 50,479 foreign contributors (39%) in 2017, they accounted for 42% of Maltese contributors in 2017 – up from 41% in the previous year. The number of foreign self- employed contributors has shot up from 1,678 in 2016 to 1,959 in 2017. Foreigners now account for nearly 9% of self- employed contributors. But foreigners account for only 7% of the contributions made by the self-employed segment. Overall self-employed con- tributors (Maltese and for- eigners) have contributed 7% of the total social security contributions paid in 2017. Women represented 25% of all self-employed contributors but account for only 21% of contributions paid by the sec- tor. A comparison with 2016 shows a decrease in the num- ber of male self-employed con- tributors of Maltese nationali- ty. These have declined by 231. On the other hand Maltese fe- males who are self-employed have increased by 241. Foreign self-employed males have also increased by 150 while foreign self-employed females have increased by 131. Figures for 2018 are still not available as FSS data for 2018 is still being submitted by em- ployers. Do foreigners get a pension? All foreign employees have to pay NI contributions just like Maltese employees. And when it comes to pensions, they have to meet the same statutory and contributory conditions like the Maltese. This does not mean that for- eigners are excluded from the pension system. If they do not meet minimum conditions to become eligible for a pension, EU regulations or bilateral agreements may come into place. The former would apply for all EU citizens while the latter, in Malta's case, would apply for Austral- ians and Canadians only. When such regulations or bilateral agreements are ap- plied, the worker may receive a pro-rata pension. This will be based on the period of time during which the prospective pensioner would have worked in Malta and paid contribu- tions. Very frequently this would be a low amount, depending on the number of contributions paid. Such persons would also be entitled to other retirement pensions from other coun- tries in which they would have worked. Non-EU citizens and Third Country Nationals (TCNs) not covered by any bilateral agree- ment simply do not qualify for a pension in Malta if they do not meet the same statutory and contributory conditions as the Maltese. The result of this is that while foreign employees pay full contributions like all the Maltese employees, they may in future either qualify for a reduced rate of pension or not qualify at all. Increasing the pool Increasing the pool of work- ers paying contributions was among the recommendations made by government pensions consultant David Spiteri Gin- gell. In 2011 he pointed out that a shrinking future workforce, due to lower fertility rate, cou- pled with a larger elderly pop- ulation that stems from longer life-expectancy, was painting a very bleak picture for pen- sions. A way of countering the shrinking workforce, Spiteri Gingell maintained, was to boost the workforce through skilled immigrants for certain roles. The pensions working group had also advocated a second pillar pension fund and linking retirement age to longevity. But the current Labour gov- ernment has excluded both measures, banking on the in- crease of contributions from increased female participation and immigration. Prime Minister Joseph Mus- cat has warned that those who didn't want more foreigners on the island were also turn- ing their back on economic growth and social measures like pensions. "You cannot cherry-pick economic poli- cies. If you want to enjoy the meat you need to take the bone too." While acknowledging the negative impact of the foreign influx on the rental market Muscat asked: "So then do we go back to that situation we had before? Then we can't pay for pensions, and have to in- crease the burden on taxpay- ers? No. This is not going to be our approach." jdebono@mediatoday.com.mt CALL FOR TENDERS As part of the project 820451 – Prepare the Ground for Economic Independence –the National Commission for the Promotion of Equality is requesting submissions for the provision of: REFERENCE: DT-NCPE/01/2018 TENDER TITLE: Service Tender for the Provision of a Research Study on existent Equal Pay Tools in Europe and the development of technical specifications for the Equal Pay Tool Any queries should be sent through e-PPS by not later than Thursday, 21 st February, 2019 at 4.00p.m. CET specifying the publication reference and the tender title. A clarification meeting will be held on Wednesday, 13 th February, 2019 at 10.00a.m. CET at NCPE premises. Closing date for submission of tenders is Friday, 1 st March, 2019 at 1.00p.m. CET. All submissions should be carried out on the e-PPS https://www.etenders.gov.mt/epps/home.do NCPE, Gattard House, National Road, Blata l-Bajda ĦMR 9010 Tel: 2295 7850 E-mail: equality@gov.mt Web: www.equality.gov.mt Rights, Equality and Citizenship Programme 2014-2020 Project part-financed by the European Union Co-financing rate: 80% EU funds; 20% National Funds Date 8th February 2019 2016 2017 Number of Maltese contributors 182,042 184,878 Number of foreign contributors 40,097 50,479 NI paid by Maltese contributors €477,576,408 €503,727,193 NI paid by foreign contributors €79,048,514 €101,613,922 Total NI paid by contributors €556,624,922 €605,341,115 (Figures include contributions paid by both self-employed and employees. Figures do not include employers' contribution) Number of different categories of contributors in 2017 Foreigners Maltese Total Male contributors 30,577 107,098 137,675 Female contributors 19,902 77,780 97,682 Self-employed males 1,226 15,940 17,166 Self-employed females 733 4,903 5,636 Employed males 29,351 91,158 120,509 Employed females 19,169 72,887 92,056 Foreigners contribute whopping €102 million into social security pot in 2017 • 17% of NI contributions in 2017 made by foreigners, up from 14% in 2016 They came, they worked, they paid €102 million The numbers