Recently, the Finance Minister of Malta presented the 2025 budget in Parliament, outlining various adjustments and policy changes across multiple sectors. This budget not only affects the daily lives of every household but also has profound implications for the country’s economic development. Below, we will detail the key measures in the budget and how they will impact each of us.
1. Employment and Income
– Expansion of Income Tax Brackets: The personal income tax exemption threshold will be raised, with each employee expected to save at least €475.
– Cost of Living Adjustment (COLA): An increase of €5.24 per week will be implemented in 2025.
– Minimum Wage Increase: The minimum wage will rise by €8.24 per week, reaching €221.78.
2. Family Support Policies
– Increase in Child Allowance: The allowance for each child will increase by €250.
– Third Child Grant: Families will receive a €1,500 grant for their third child, in addition to €500 and €1,000 for the first and second children, respectively.
– Disability Child Allowance: An increase of €5 per week, bringing it to €35, benefiting approximately 2,510 children.
– Marriage Allowance: An increase of €170 per person, totaling €500 for couples (€1,000 combined).
– IVF Treatment Leave: Each treatment cycle will provide 100 hours of paid leave (60 hours for the mother and 40 hours for the partner), applicable to self-employed women.
– Foster Family Allowance: An increase of €10 per week, totaling €6,240 annually.
3. Pensions and Elderly Benefits
– Pension Increase: An increase of €8 per week, totaling €416 annually.
– Occupational Pension: The government will provide an occupational pension plan for employees, matching contributions up to €100 per month.
– National Insurance Contributions: Individuals born in 1976 or later will need to contribute for 42 years to receive full pension benefits.
– Widow’s Pension: An increase of €3 per week, benefiting 7,500 widows.
– Service Pension Tax Exemption: The tax exemption will increase by €200, reaching €3,666, benefiting 3,250 service pension recipients.
– Long-Term Care Allowance: The allowance will increase to €1,000 for those with insufficient contributions.
– Home Care Allowance for Seniors: The allowance for seniors aged 75 to 79 will increase by €50, reaching €350, while the allowance for those over 80 will remain at €450.
4. Education and Child Support
– Book Vouchers: All primary, secondary, and high school students will receive a €20 book voucher, usable at book fairs.
– Family Library Grants: Children from disadvantaged families will receive a €150 grant for book purchases.
– Private School Tax Credits: Parents with children in private schools can claim tax credits, with €3,500 for kindergarten, €4,600 for primary, and €6,500 for secondary education.
5. Housing and Environment
– New OHSA Branch: A new branch of the Occupational Health and Safety Authority will be established on Gozo.
– Extension of Old Property Restoration Grants: The restoration grant policy for old properties will continue.
– Development of Open Spaces: Public spaces will be developed in areas such as Luqa, Birkirkara, St. Julian’s, and Qormi to provide residents with more recreational areas.
6. Transportation and Energy
– Electric Vehicle Subsidy Adjustment: The electric vehicle subsidy will be reduced to €8,000, with a maximum of €2,000 for electric motorcycles.
– Underground Parking Construction: Underground parking facilities will be built in Sliema and Cospicua to alleviate parking difficulties.
– Renewable Energy Subsidies: Subsidies for photovoltaic panels, batteries, and solar water heaters will continue.
7. Health and Social Security
– Private Healthcare Collaboration: €14 million will be allocated to collaborate with the private healthcare sector to reduce patient waiting times.
– Mental Health Services: An investment of €4.5 million will be made to provide mental health services to the community.
– Tax Exemption for Women’s Hygiene Products: Women’s hygiene products and medical supplies for cancer patients will no longer be taxed.
– Domestic Violence Protection Measures: Domestic violence reporters will receive emergency alarm buttons to ensure timely reporting.
8. Culture and Tourism
– Fitness Subsidy for Youth: Young people aged 18 to 20 will receive six months of free gym membership.
– National Motorsport Center Construction: The first phase of construction will begin in 2025.
– Cultural Center Development: The MCAST Cultural Center will receive €15 million in EU funding support.
– Local Film Fund Increase: The local film fund will be increased to €2 million to support the growth of the film industry in Malta.
9. Agriculture and Food Safety
– Canal Restoration: Efforts will be made to protect and restore the canal connecting Rabat and Gozo.
– Gozo Museum Construction: The construction of the Gozo Museum will continue in 2025.
– Food Safety Agency: Malta plans to establish a Food Safety Agency in 2025 to ensure food safety and health standards.
The 2025 budget for Malta introduces a range of positive policy adjustments across various sectors, aimed at improving the quality of life, promoting economic growth, and enhancing the overall welfare of the nation. These measures not only impact the daily lives of every household but also lay a solid foundation for Malta’s future development.
As we look forward to the new year, we hope that all the measures outlined in this budget will be effectively implemented, creating a better living environment for residents.
Are you excited about Malta’s development in 2025?
Copyright © Malta-life.com
