Finance Minister Clyde Caruana confirmed that the Cost Of Living Adjustment (COLA) for 2023 will reach €9.90.

It is paid to all workers, and is calculated based on a formula that factures in inflation and cost of living indicators. 

The Government appears to have ignored major business interest groups, such as the Malta Employers Association and The Malta Chamber who called for COLA to be granted to workers who need it, or to set a minimum and maximum rate.

Perhaps pre-empting employers’ anger, the Minister, who was speaking on Monday evening in Parliament to reveal the 2023 Budget, said that inflation would have hit €25 weekly if energy and staple food subsidies were not in place.

Special COLA mechanism

A special COLA mechanism, which was expected to be revealed last year but was instead inserted in the 2023 budget, will see 80,000 low income people receive a cash grant.

Amounting to around €300, grants will be means-tested and will arrive by Christmas.

The measure will cost around €10 million.

Pensions to rise by €12.50 per week

Pensioners can expect a weekly increase of €12.50, amounting to €650 annually. For context, 2022 saw pensioners receive an extra €5 weekly.

The figure also includes the COLA and will cost around €65 million to finance.

Featured Image:

Parliament in session for the Budget 2023 announcement / Photo by Clifton Fenech

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