Lower tax on overtime and tax refund

Edward Scicluna has opted to start delivering on the pledge to tax overtime at a lower rate.

Workers earning a basic salary of up to €20,000 and who are not in a managerial position, will benefit from a flat 15% tax rate on the first 100 hours of overtime per year.

This means that overtime will no longer be taxed at the regular income tax rates for these workers.

The measure is expected to cost between €5 million and €6 million.

Tax refund

The income tax refund will be given for the third year running and will range between €40 and €68, with those earning less, receiving more.

The measure will benefit some 200,000 workers and will cost €11.5 million. Those workers who do not pay tax will also benefit from the measure.

This means that for the third year running the government has opted to leave the refund amounts unchanged. The electoral pledge was to gradually increase refunds to a range between €200 and €350.