Peg Prime Minister, Cabinet salaries to CEO pay, says The Malta Chamber

The Malta Chamber has issued a set of recommendations aimed at reforming the parliamentary remuneration system, suggesting that the salaries of key constitutional office holders are pegged to the average private sector CEO’s salary.

For example, the Prime Minister’s salary would be set at 90 per cent of the average median salary of private sector CEOs, amounting to approximately €113,900, while salaries for Ministers and the Leader of the Opposition would be based on 75 per cent of this average. These changes are designed to ensure that parliamentary roles are not undervalued in comparison to similar leadership positions in the private sector. Meanwhile, Members of Parliament (MPs) should have their basic salaries pegged to Scale Number 3 of the Public Service’s salary schedule, which currently stands at €42,582.

The Chamber argues that this approach will ensure fairness, transparency, and equity in the compensation for MPs, while simultaneously addressing public concerns regarding the financial incentives of elected officials.

As part of a wider package of governance reforms, the Chamber also proposes that the salary of MPs be adjusted annually in line with any changes in the collective agreements for public officers or additional cost-of-living allowances.

The overall objective, according to the Chamber, is to create a parliamentary system where MPs are fully compensated for the responsibilities they bear, thereby fostering integrity and reducing the temptation for financial misconduct.

The report comes in the wake of growing public scepticism about MPs’ salaries, with the Chamber asserting that current levels of remuneration do not adequately reflect the complexity and importance of the parliamentary role.

A key concern highlighted in the document is the risk of corruption and undue influence, which can arise when elected officials face financial pressures. The Chamber’s recommendations seek to mitigate these risks by introducing market-rate remuneration for MPs, alongside a range of other proposed reforms aimed at strengthening the political governance framework in Malta.

In its document, the Chamber also calls for MPs to work on a full-time basis, as opposed to the part-time system in place today. This move would enable MPs to fully focus on legislative duties, Government oversight, and constituent engagement. Additionally, the Chamber suggests introducing a Parliamentary Research Service and providing MPs with support staff, including research assistants and media assistance.

Overall, the Malta Chamber’s recommendations aim to address long-standing issues with parliamentary remuneration, calling for a thorough review and overhaul of the current system to promote greater transparency, accountability, and effectiveness in the country’s democratic institutions.

However, the Chamber stresses that these changes should be implemented as part of a broader package of reforms to Malta’s political governance system, including those outlined in its previous policy documents on transparency and ethical governance.

The Chamber has made it clear that it will not support reforms to MPs’ salaries unless they are accompanied by these necessary governance changes.