Family leave ‘should not descend into populist competition,’ warns The Malta Chamber

The Malta Chamber has issued a stern warning to politicians looking to extend family leave to drive up the country’s declining fertility rate, saying that ‘such a sensitive and important subject should not descend into a populist competition over who can promise the most generous benefits or the longest periods of leave, without first understanding the implications on productivity and Malta’s competitiveness.’

While it acknowledged the importance of policies that improve the quality of life for families and support better work-life balance, The Malta Chamber said such policies “must be designed carefully and sustainably.”

“Unsound measures will ultimately be borne by businesses and taxpayers, and risk undermining the competitiveness and productivity of Maltese businesses,” it said.

The lobby group cited research showing that increasing parental, paternal or maternity leave is not a guaranteed solution to improving fertility rates.

“Studies highlight that while there are instances where longer and paid leave policies may have a positive outcome, the deeper causes of declining fertility – such as increase in housing costs, economic instability and constraints, high living costs, lack of childcare solutions, pursuit of higher education and greater female labour force participation, as well as reconciling work and family life challenges – play a far greater role in family planning decisions.”

It warned that extending leave without addressing these fundamental issues would risk creating costly policies with little meaningful impact.

The Malta Chamber stressed that politicians should resist the temptation of identifying a problem and then immediately proposing a “fix” without proper research, consultation, and analysis.

“A piecemeal approach that focuses only on leave entitlement risks shifting attention away from the root causes.”

The Malta Chamber urged Government, the Opposition and policymakers to:

• Ground policy decisions in evidence-based research that reflects Malta’s realities
• Consider the broader socio-economic factors driving declining fertility, including cost of living and work support structures
• Avoid turning family policy into an electoral bidding war and
• Ensure that any new measures are sustainable, both financially and administratively.

“Enhancing the quality of life for families is an important objective. However, it is necessary to also consider economic growth and productivity. Malta requires comprehensive and well-researched approaches rather than temporary measures.”