Social protection covers all measures from public or private entities to support households or individuals from a defined set of risks or needs, aiming to reduce poverty and vulnerability within societies. Throughout this domain, users will be presented the principal attributes of Malta’s social protection system, classifying data by ESSPROS function and social protection scheme. In Section 1.1, a review of the gross social outlay along the five-year period between 2020 and 2024 will be conducted. The remaining sections will then shift focus towards the ESSPROS modules; (1) Net ESSPROS (1.2), (2) Pension Beneficiaries (1.3) and (3) Unemployment Benefits Recipients (1.4).
Salient Points
Gross Expenditure (2024)
Social outlay amounted to €3,080.8 million, a 12.4 per cent rise from the previous reference year.
The social protection-to-GDP share rose from 13.1 per cent in 2023 to 13.4 per cent in 2024.
Highest increases were noted under the Social Security Contributory Benefits (€109.2 million) and Care of the Elderly and the Disabled (€69.6 million) schemes. Lower outlay was registered by three of the 17 active schemes, with the €2.0 million drop exhibited in the Energy Benefit scheme representing the largest decrease.
Function-wise, expenditure ranged from €1.3 billion (43.4 per cent of the total outlay) under the Old Age function to €25.4 million (0.8 per cent) within the Unemployment function.
Non means-tested cash benefits accounted for 49.2 per cent of the total social expenses.
Net ESSPROS (2023)
Net outlay rose by €124.0 million from €2,596.4 million in 2022 to €2,720.3 million by the end of 2023.
Following the discontinuation of the COVID-19 Support Measures in 2022, social outlay recouped in taxation fell by €12.5 million to €20.0 million in 2023.
The highest share of social taxes was obtained from the Sickness Days – Employers’ Expenditure (55.4 per cent). Remaining taxation was collected from the Social Security Contributory Benefits (25.5 per cent) and Service Pensions (19.1 per cent) schemes.
Pension Beneficiaries (2024)
There were 104,599 persons in receipt of a pension, 54.6 per cent being men.
A 1,911 rise in recipients from the previous year.
Old age type pensions were paid to 79,148 or 75.7 per cent of the total pensioners.
Unemployment Benefits Recipients (2024)
Unemployment recipients fell by 3.3 per cent amounting to 11,347.
Women constituted 6,047 or 53.3 per cent of the overall beneficiaries.
The highest share of claimants was aged between 25 and 34 years old (28.3 per cent of the total).
On average 3,690 individuals received unemployment benefits monthly.
In comparison to 2023, higher average stock was reported under Jobsplus (189 more persons) and Contributory Benefits (88). In contrary, Non-Contributory average declined by 109 persons.
List of Schemes
1. Social Security Contributory Benefits: The universal contributory scheme in Malta is a system where an employee, self-occupied or self-employed person pays a weekly contribution as laid down in the Social Security Act 1987 (Cap. 318), through a ‘pay as you go’ system. In return, contributors earn eligibility to social security benefits, including pensions, within the scheme. All pensions and allowances payable under this scheme are subject to some form of a contribution test depending on the type of benefit claimed.
2. Social Security Non-Contributory Benefits:Originally providing financial aid towards individuals below the poverty line, the non-contributory scheme has since evolved into a comprehensive scheme with several provisions supplying simultaneous coverage in those cases where more than one contingency is present. In general, eligibility towards benefits within this scheme is subject to the applicant satisfying a mean-test.
3. Hospitals and Other Health Care Facilities: This scheme covers the Maltese health care system as operated by means of an integrated health service that is organised at the national level. Parliament is responsible for enacting health care legislation and for approving the health care budget. All residents have access to preventive, investigative, curative and rehabilitative services in Government Health Centres and Hospitals.
4. Family and Social Welfare: The Department of Family Welfare offers services in social work that aim at favouring a better mutual adaptation of individuals, families, groups, and the social environment in which they live, and developing their self-respect and self-responsibility of the individuals utilising the capacity of persons, interpersonal relations and the resources provided by the community. The functions of the Department are carried out by the social workers that it employs as well as by other professionals.
5. APPOĠĠ: Aġenzija Appoġġ was inaugurated in the year 2001, following the restructuring of the previous Social Welfare Development Programme. The agency plays a crucial role in Malta’s welfare system by offering various services aimed at vulnerable groups, including families and individuals at risk of poverty or social exclusion, victims of domestic violence or human trafficking, and hospitalised patients feeling isolated and requiring social work intervention post release.
6. Sedqa: SEDQA agency was mandated by a Cabinet decision to provide prevention and care services to increase awareness and treat drug and alcohol abuse. The objective of this agency is to plan and recommend developments and updates of the national policy in the field of drug and alcohol abuse and to provide services in health promotion, prevention, treatment, and rehabilitation to persons with drug and/or alcohol problems (and their families) to help them live a healthier life and to integrate better in society.
7. Jobsplus: In June 2016, an act of Parliament saw the former Employment and Training Corporation, itself established in August 1990, change its name to Jobsplus. The name change was part of a wider branding strategy aimed at positioning Jobsplus as an innovative and dynamic organisation that satisfies the labour market demands of employers, jobseekers, and employees. Unemployed persons registering for employment may enrol into training programmes and schemes within Jobsplus aimed at enhancing their experience and employability.
8. Non-Profit Institutions Serving Households: National Accounts data is used to obtain the total expenditure covering services provided by non – profit organizations. As the scope of these services are vast and can be classified under seven of the eight functions (the sole exception being Housing), a pre-established ratio calculated from previous years is applied to allocate the total expenditure among the respective functions.
9. Sickness Days – Employers’ Expenditure: This scheme covers employer’s expenditure made with regards to employees who are on sick or injury leave:
(i) Sick leave: These consist mainly of wages and salaries paid by employers during periods of sick leave. According to local legislation, full pay must continue to be paid during the first three days of sick leave. Subsequently, sick leave pay is financed partly through social security benefits paid by the DSS, with the shortfall being contributed by the employer. Depending on specific employee-employer arrangements, the employer will, after an established period, proceed to cover 50 per cent of the salary. At a later point, the employer may be relinquished from his/her obligations to pay any salary to employees on long-term sick leave.
(ii) Injury leave: All employees are entitled to a maximum period of one year injury leave on full pay, less the full amount of any injury benefit to which such employee may be entitled in terms of the Social Security Act, if s/he is injured during the actual discharge of his duty and not due to contributory negligence on her/his part or to any contravention of safety rules laid down by the employer. As in the case of sick leave, the first 3 days of absence from work are paid by the employer.
10. Subsidies on Utilities: Includes:
(i) Subsidised telephone rent is offered to elderly people who are in possession of the pink form and are on social assistance.
(ii) Water and electricity rebates awarded to domestic households whose head is benefiting from social assistance. These rebates are in the form of a waiver on the meter rents (both water and electricity), as well as a reduction in the consumption charge for water.
11. Energy Benefit: All individuals who are in receipt of one of Social Assistance, Carers’ Allowance, Unemployment Assistance, Increased Carers’ Allowance, Age Pension, Social Assistance for Single Parents or Special Unemployment benefit, along with those who benefit from water and electricity meter rebates, automatically qualify for the Energy Benefit. Furthermore, those persons in receipt of Children’s Allowance, Supplementary Allowance or Drug Addicts Allowance are also eligible to receive the benefit if their declared income is below the established means-tested threshold. The number of Energy Benefit beneficiaries is taken to be equivalent to the number of water and electricity meter rebates recipients.
12. Housing Authority Subsidies: The Housing Authority subsidizes the interest paid by members of the public on loans obtained to purchase housing units from the Authority and to build on land leased from the Authority. The Housing Authority also subsidizes the cost of housing units, plots and ground rents to members of the public. Grants are also given on various schemes offered by the Authority.
13. Bus Fare Subsidy: Prior to the introduction of free public transport for all Tallinja card users in October 2022, subsidised fares were payable by (i) pensioners (in possession of the Kartanzjan card), (ii) disabled persons in possession of the Blue Badge or Special ID Card issued by the National Commission Persons with Disability and (iii) children between the ages of 4 and 10 (both inclusive) on route bus fares.
14. Pensioners’ Gozo Ferry Boat Subsidy: Senior citizens over the age of 60 and in possession of the Kartanzjan are eligible to use the Gozo Ferry at a subsidised rate.
15. Care of the Elderly and the Disabled: The scheme is composed of non means-tested Old Age as well as Disability benefits. Services such as the Adult Training Centres (which provide resources, services, training and other forms of support that enable persons with disability, and their families, to form an integral part of society) are included within this function. However, the bulk of expenditure under this scheme covers ‘homes for the elderly’.
16. Service Pensions: This scheme covers several programmes including:
a. Pensions, Allowances and Gratuities under Pensions Ordinance (Cap. 93) and rules previously in force;
b. Pensions and Allowances under the Widows’ and Orphans’ Pensions Act (Cap. 58);
c. Pensions and Allowances under the Personal Injuries (Emergency Provisions) (Cap. 111);
d. Allowances under Act XVII of 1966 (Members of Parliament Retiring Allowances Act, 1966) and pensions under Act XXVI of 1979 (Members of Parliament Pensions Act, 1979) as amended by Act XIII of 1981;
e. Pensions, Allowances and Gratuities under Members of the Judiciary (Pensions) Act (Cap. 564);
f. Pensions Allowances and Gratuities under Civil Protection Act (Cap. 411);
g. Pensions Allowances and Gratuities under Prisons Act (Cap. 260);
h. Pensions specially authorised;
i. Cost of Living Bonus to retired Members of Parliament and Civil and Police pensioners;
j. Cost of Living Bonus to widows and orphans under the Widows’ and Orphans’ Pensions Act;
k. Bonus to Government pensioners.
17. MDD/MSCL/MSY Voluntary Retirement Scheme: Following the restructuring of the Malta Shipyards in 2002, an early retirement scheme was put forward to dockyard workers. This monthly retirement benefit, which was voluntary and directly linked to the number of service years, is payable until the beneficiaries attain the age of 61, when the normal retirement pensions become available.
18. Third Country Nationals and Refugees: This vote covers recurrent expenditure in connection with the stay of irregular immigrants in Malta. Costs covered include the provision of food, medical services, maintenance of temporary shelter and surveillance by the Armed Forces of Malta.
19. COVID-19 Support Measures: Between March 2020 and May 2022, various support measures were put in place by the Government to counteract the negative economic impact caused by the COVID-19 pandemic. The aim of these measures was in aiding those businesses who suffered the most during the pandemic, whilst maintaining their employees’ job security.
- Introduction
- Chapter 1 - Social Protection
- Chapter 2 - Sickness/Health care
- Chapter 3 - Disability
- Chapter 4 - Old Age
- Chapter 5 - Survivors
- Chapter 6 - Family/Children
- Chapter 7 - Unemployment
- Chapter 8 - Housing
- Chapter 9 - Social Exclusion
- Chapter 10 - Social Security Benefits (by district and locality)
- Annexes