Issue link: https://maltatoday.uberflip.com/i/1510683
10 maltatoday | TUESDAY • 31 OCTOBER 2023 BUDGET2024 WAGES WELFARE Wages to increase by €12.81 a week JAMES DEBONO WAGES will increase by a minimum of €12.81 a week to reflect the inflation rate over the past year, thanks to the standardized annual cost of living adjustment (COLA). This is the highest increase ever, up from the previous record of €9.90 a week last year. In 2021, COLA was €1.75, while in 2020, it stood at €3.49 per week. Furthermore, approximately 95,000 families with lower incomes will benefit from a higher increase due to the extension of the additional cost of living mechanism, which targets low- er-income earners earning less than the national median income. The amount received will also depend on the number of dependent children in each family, ranging from an extra income of €100 to €1,500 per year. According to the Finance Minister, the number of beneficiaries of this benefit will nearly double compared to last year when it was limited to those earning less than the average income of €17,796. The speech does not provide details ex- plaining the increase in beneficiaries, suggesting that the mechanism is being extended to cover a greater portion of the lower middle class, in ad- dition to those living on benefits and those with very low incomes. The benefit will be paid in two tranches, one before Christmas and a second one in May. The government will be investing €26 million in this financial support for poorer families. Simultaneously, the minimum wage will in- crease from the current €192.73 to €213.54 per week, starting on January 1, 2024. This figure in- cludes the Cost of Living Adjustment, following an agreement between the social partners that determines minimum wage increases for the next four years. In 2024, Malta's minimum wage will be adjust- ed to €200.73, plus the COLA that will be pro- vided in 2024, amounting to €213.54. This will increase to €210.73 per week plus the COLA increase in 2027. In total, the minimum wage be- tween 2024 and 2027 will increase by €12 to €18 per week, excluding the COLA. MATTHEW AGIUS SENIOR citizens who employ a carer of their choice to assist them in their daily needs can now claim €8,000 per year to do so, an increase of €1,000. The increase to the Carer at Home scheme is one of several budget measures announced in the budget that raise welfare ben- efits. Other measures aimed at easing the financial burden borne by per- sons who care for someone with a disability include an augmenta- tion to the Increased Carers' Al- lowance, bringing it up to €173.78 per week, while the Carers Allow- ance will also go up to €120.68 per week, in line with COLA. 2024 will see the start of the Bormla residential care home project, and construction works on the Msida care home, amongst sundry works on existing projects and the completion of a multidis- ciplinary clinic for the elderly at Floriana and Dar San Guzepp in Ghajnsielem, Gozo. A law establishing the Stand- ards Authority for the Elderly is planned to enter into force in 2024. The St Vincent de Paul care home will undergo extensive re- furbishment and the construction of a new pharmacy block, together with further investment in medi- cal equipment. Clyde Caruana an- nounced that new clinics at SVPR and in the community are to be set up, as well as a €700,000 Ther- apeutic Petting Farm and Recrea- tion Centre. The electoral promise to intro- duce the concept of partial inva- lidity for individuals who are un- able to work for medical reasons, but are expected to return to the workforce in future is to be ful- filled by increasing sickness bene- fits for persons who have been un- able to work for over six months, to rates equal to a disability pen- sion. The Carers' Grant afforded to parents who forgo employment to care for severely disabled children are entitled to half minimum wage and will therefore benefit from the increase in the minimum wage, up by €487 and now approaching the annual figure of €5,000. Like- wise, disability pensions, which are equal to the net minimum wage, are to benefit from COLA, increasing by €17.39 per week. The government will be invest- ing €5.2 million, up by €1 million from last year, in inclusion and re- forms aimed at assisting disabled people and their families. An inter-professional medical board to assess disability claims is to be created and start operating next year, assessing claims against international standards estab- lished by the WHO. People on lower incomes will receive additional benefits ranging from €100 to €1,500 a year, depending on their income and the number of children Increased welfare assistance for disabled and elderly announced