Each year, during malta's budget speech, the government announces a minimum increase in salary. This is referred to as cola (cost of living adjustment), and the increase is to be paid by the employer to every employee, effective 1st of january.
The cost of living increase is obligatory. In 2023 and 2024 it results that the additional cola is €2.91 per week more than the result of the cola mechanism.
Stipends Will Also Increase In Line With The Cola Adjustment.
A brief overview of the main updates and adjustments in relation to payroll, employment & related matters, including cola, minimum wage, various leave entitlements, tax rates and social security contributions for 2024, is set out below.
This Is The Highest Increase Ever, Up From The Previous Record Of €9.90 A Week Last Year.
The cola mechanism is linked to inflation and was agreed to by unions, employers and the government back in the 1990s.
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As From 2024, The Minimum Weekly Wage Will Increase To €213.54 (Including Cola).
The cola is added to the basic wage.
Cola Up To €12.81, To Remain Taxed.
Therefore, the employee would only be entitled to the cola awarded for 2024.