Issue link: https://maltatoday.uberflip.com/i/1540773
COLA €4.66 PER WEEK €10 BUDGET SHORTS 2 maltatoday | TUESDAY • 28 OCTOBER 2025 BUDGET 2026 We take a look at some of the key social and wage measures. The changes to income tax rates for families with children are not listed here and presented in greater detail separately PENSIONERS CHILDREN'S ALLOWANCE €250 increase per child for families earning less than €30,000 IN-WORK BENEFIT CARERS' GRANT €179 increase to reach €5,369 per year DISABILITY THERAPY REFUND €250 yearly increase to reach €1,000 per year. Eligibility to be extended to 23 years of age BABY BONUS €500 increase to birth and adoption bonus. First child bonus will be €1,000, second child €1,500 and third child or more €2,000 ADOPTION GRANT Increase to a maximum of €12,000 for adoptions from abroad and €2,000 for local adoptions ELDERLY CARER GRANT €500 increase to €9,000 per year for those who employ a carer for elderly relatives WAGE INCREASE SUPPORT Government to finance up to 65% of the wage increase (up to a maximum of €780 per year) for two years in the private sector for workers who have been employed for more than 4 years. In Gozo, support will be higher at 80% (up to a maximum of €960 per year). PER WEEK INCREASE including COLA €75 INCREASE PER CHILD €500 STIPENDS 15% increase equivalent to between an increase of between €17 and €58 every four weeks excluding COLA KARL AZZOPARDI kazzopardi@mediatoday.com.mt FISH FRIDAYS Government schools will be serving local fish on Fridays to promote healthy eating habits Generous Finance Minister Clyde Caruana announces introducing tax savings that will take effect over MALTA'S income tax bands for parents and married couples with children will be overhauled over the next three years to leave more money in the pocket of people rais- ing children. The progressive tax savings will start being felt next year with high- er tax-free income thresholds and the widening of intermediate tax brackets across the board for par- ents. This key measure of Budget 2026 will leave €160 million in peo- ple's pockets over the three-year span and effect thousands of fami- lies. The changes will apply also to families with one child. Parent computation with one child The changes for the estimated 23,750 parents with one child of- fer the most significant immedi- ate-term savings for those earning more than €14,500. By 2028, the maximum tax-free income for this category will rise to €18,000. The tax rates for this group will be adjusted across the three years, culminating in a 15% rate applied to income between €18,001 and €28,000 and a 25% rate for income up to €60,000. Any in- come above €60,000 will pay 35% tax. The maximum tax saved for a fam- ily in this category will total €3,600 by the end of 2028. Based on the projected figures, one family could save up to €113,000 over a period of 23 years. Parent computation with two or more children The most expansive tax adjust- ments target the 29,300 parents with two or more children. By 2028, the minimum income threshold before tax is applied will be €30,000. The 15% rate will then Children's allowance FINANCE Minister Clyde Caruana has announced the children's allow- ance is set to increase by €250. The measure will apply to parents who earn up to €30,000 yearly. The increase aligns with a pledge made in the Labour Party's mani- festo to raise the allowance by €450 during this legislative term. The minister said in the past four years, every family who has been eligible to receive children's allow- ance, will have seen an increase be- tween €590 to €1,007. Caruana also announced a €500 increase to government's birth bo- nus. Parents will get €1,000 for the first-born child, €1,500 for the sec- ond child and €2,000 for the third. Fostering care allowance is also set to increase from €6,240 a year, to €6,760 – increasing by €10 a week. The minister said in-work bene- fit will see an increase of €75. This he said is in line with the elector- al pledge to increase the in-work benefit by €200 by the end of the legislature. In line with government's wider family measures, birth bonus set to increase by €500 KARL AZZOPARDI kazzopardi@mediatoday.com.mt