Issue link: https://maltatoday.uberflip.com/i/1335208
6 maltatoday | SUNDAY • 31 JANUARY 2021 NEWS CONTINUED FROM PAGE 1 While the number of Maltese contributors only increased by 899 between 2018 and 2019, the number of foreign contrib- utors shot up by 11,774 in the same timeframe. Moreover, Maltese male contributors have actually de- creased by 687 while the num- ber of female contributors in- creased by 1,586. These statistics confirm that male workers prevail among foreigners working in Malta since 62% of foreign contribu- tors are male. Foreign self-employed con- tributors shot up from 1,678 in 2016 to 2,583 in 2019, which means they now account for 12% of self-employed contrib- utors. However, in terms of so- cial security contributions, for- eign self-employed account for 8.5% of the total contribution. A comparison with 2018 shows a decrease in the num- ber – 81 – of male self-em- ployed contributors of Maltese nationality. On the other hand, Maltese female self-employed increased by 225. Foreign self-employed males have also increased by 171 while foreign self-employed females have in- creased by 116. 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 ap- ply for all EU citizens while the latter, in Malta's case, would apply for Australians and Ca- nadians only. In such cases, the worker may receive a pro-rata pension – 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 con- tributions 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 a lower fertility rate, coupled with a larger elder- ly population that stems from longer life-expectancy, was painting a very bleak picture for pensions. 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 lon- gevity. But the current Labour gov- ernment has excluded both measures, banking on the in- crease of contributions from increased female participation and immigration. In 2018 former Prime Minis- ter Joseph Muscat had warned that those who didn't want more foreigners on the island were also turning their back on economic growth and social measures like pensions. "You cannot cherry-pick economic policies. If you want to enjoy the meat you need to take the bone too." jdebono@mediatoday.com.mt Amount paid by foreigners in NI contributions € million % of total contributions 2016 79 14 2017 102 17 2018 138 20 2019 168 23 Number of foreign contributors 2016 40,097 2017 50,479 2018 65,092 2019 76,866 Breakdown of foreign contributors in 2019 by gender and employment No. Increase over 2018 Males 47,515 +7,914 Females 29,351 +3,860 Self-employed 2,583 +287 Employed 7,4283 +11,487 Breakdown of Maltese contributors in 2019 No. Increase over 2018 Males 106,878 -687 Females 81,952 +1,586 Self-employed 21,888 +144 Foreign workers a crucial source of national insurance income MALTATODAY staff and owners of Me- diatoday bid farewell to Alex Francalanza, a former sub-editor and proofreader who joined MaltaToday in 2017. He died on 27 January 2021 at just 56, leaving to mourn his wife Therese, and his sons Adrian and Julian, the latter a stu- dio manager at MediaToday until recently. "Alex was a man who enjoyed life to the full; a man full of pas- sions, interests, who lit up the newsroom with an infectious smile every Friday when his hec- tic weekend shift started," said MaltaToday executive editor Matthew Vella. "He was a generous man who endured the last months of his life with dignified courage. COVID-19 prevented many of us from being able to see him one last time." Alex was an educa- tor and an examiner by profession, with a passion for cars and travelling. He was known for his zest for life. At MaltaToday, he was sub-editor for the newspa- per, discharging his duties with patience and diligence, and al- ways with a positive attitude. Deepest condolences to his family from all MediaToday em- ployees. Farewell: Alex Francalanza Always smiling: Alex Francalanza