Employment and Pension Initiatives in the Malta Budget 2026

- The government will assist private sector employers in raising wages for long-serving employees by subsidising a portion of the salary increase. This support applies to employees who have been with the same employer for over four years and will be available for a two-year period:

1. Employers based in Malta will receive funding equivalent to 65% of the wage increase, capped at €780 annually.
2. Employers in Gozo will benefit from 80% coverage, up to a maximum of €980 per year.

This initiative is designed to encourage workforce retention and promote long-term employment relationships.

- The Occupational Health and Safety Authority(OHSA) will expand its training programmes to help businesses, particularly SMEs, enhance compliance with workplace safety regulations.

- A National Talent Register will be launched to map skills across the workforce and improve labour market planning and mobility.

- The public sector will continue to promote remote working arrangements and leave donation schemes to support work-life balance.

A new scheme will be introduced to attract Maltese nationals aged 18–30 who are currently living abroad, encouraging them to return to Malta for work or study opportunities.

- The government will introduce neonatal care leave for parents whose newborns require intensive or specialised medical attention immediately after birth. This leave will be fully funded by the state.

- Self-employed individuals will become eligible for Parental Leave, Bereavement Leave, and Miscarriage Leave, aligning their entitlements with those of employed persons.

- Discussions will commence to explore enhancements to maternity and paternity leave, as well as improvements to parental leave provisions.

- The Cost of Living Adjustment (COLA) for 2026 will be €4.66 per week, ensuring continued support for household income stability.