Factsheet for measure
MT-2020-23/935
–
Updated
– measures in Malta
In-work benefit for working parents
Background information
Offered by the Department of Social Security, the In-Work Benefit aims to assist couples and single parents who are employed and have children under the age of 23 years, who are dependent and living with them. The In-Work Benefit provides these individuals who have a limited income with financial support. In view of the COVID-19 pandemic, this benefit will increase its threshold and rate.
Content of measure
The In-Work Benefit is usually paid quarterly in January, April, July and October. In view of COVID-19, a one-time payment of €250 is being paid for the year 2020 as an In-Work supplement to a beneficiary in receipt of In-Work Benefit.
Applicants must have children under the age of 23 who live within the household. The usual eligibility for the in-work benefits are:
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A declared income (Year of Assessment 2019) of a single parent in gainful employment is between €6,600 and €17,130. They would be eligible for a maximum payable rate of up to €1,350 yearly per child.
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A couple in gainful employment whose collective income from employment is between €10,000 and €24,630. They are eligible for a maximum payable rate of up to €1,300 yearly per child.
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A couple of whom only one is in gainful employment and whose income from employment is between €6,600 and €17,130. They are eligible for a maximum payable rate of up to €550 yearly per child.
Updates
The following updates to this measure have been made after it came into effect.
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01 January 2023
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The range of applicability was again updated for the year 2023. Eligible single parents are those earning less than €35,000, and can earn up to a maximum of €1,500 per child annually. In the case of a couple in gainful employment, those couples earning less than €50,000 can also receive up to €1,500 per child annually. In the case of a couple where only one individual is in gainful employment, those earning less than €35,000 are eligible and can receive up to €730 annually per child.
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09 December 2022
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Family Minister Michael Falzon announced that people eligible for an in-work benefit would no longer need to apply for it, but rather this would be provided automatically on the basis of individuals' tax returns. The move is likely to double the number of recipients, with 14,000 individuals eligible, and consequently, the Government allocated an additional €10 million to this measure.
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19 October 2020
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It was announced during Budget 2021 that the thresholds of the In-work benefit will again be revised. For couples where both spouses work, the threshold will rise to €35,000. In the case of couples where only one parent works, the threshold will rise to €26,000. For single parents, the threshold will rise to €23,000. 4,500 new families will be eligible for this benefit under the updated thresholds.
This measure was welcomed by the General Workers Union.
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06 June 2020
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As from 6 June 2020 till 31 December 2020, the revised criteria and rate are now:
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A declared income for a single parent in gainful employment earning more than €6,600 and less than €18,200 is eligible for a maximum payable rate of €1,400 yearly per child.
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A couple in gainful employment whose collective income from employment is greater than €10,000 and is less than €26,000 are eligible for a maximum payable rate of up to €1,400 yearly per child.
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A couple of whom only one is in gainful employment and whose income from employment is greater than €6,600 and less than €22,000 are eligible for a maximum payable rate of up to €630 yearly per child.
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Use of measure
In June 2020 the government announced that 3,900 families will receive a €250 top-up to their usual in-work benefit.
NSO data demonstrated that due to the change of application status, where the in-work benefit was provided automatically to parents who fell within the correct income brackets, an increase of €6.7 million was recorded in 2022. In 2023, 14,000 individuals are likely to benefit from the in-work benefit.
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Direct consultation outside a formal body
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: Unknown
Involvement
Through a tripartite agreement, a package of measures to save jobs and organisations was agreed on 24 March 2020. This was the third and most significant package of measures announced by the government. Following this agreement, social partners remained in direct contact with the government highlighting their proposals of what was felt was still necessary to save the Maltese economy and jobs. On the 8 June 2020, the government announced a 'mini budget' to help the Maltese economy to recover from the effects of the COVID-19 pandemic. This was the fourth package of measures announced by the government. The current measure formed part of this package. The measure is administered by the Social Security Department.
Views and reactions
The fourth package of measures, of which the current measure formed part of, received public support from an array of social partners. Those positive and vocal about it were primarily business associations, including the Chamber of Commerce, the Chamber of SMEs, the Malta Employers' Association, the Malta Hotels and Restaurants Association, and the Association of Catering Establishments. While these associations commented on the proposals in general which included reduced electricity tariffs, aid with rent, and vouchers, only the MHRA appears to have made specific mention of the In-Work Benefit which it viewed positively. Also, the General Workers' Union supported the package. The feedback on the overall package from unions was more mixed. The Union Ħaddiema Magħqudin (UHM) Voice of the Workers argued that only 6% of the €900 million mini-budget will end up benefiting workers directly.
Sources
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10 June 2020: In work benefit
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01 January 2023: Social security - In-work benefit 2023
(socialsecurity.gov.mt)
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05 April 2023: NSO - Government Expenditure on Social Security Benefits: January-December 2022
(nso.gov.mt)
