Silvio Schembri accuses PN of wanting to increase social security contributions

The Nationalist Party is proposing an increase in workers' social security contributions, Economy Minister Silvio Schembri has claimed.

Speaking at a press conference alongside candidate Jonathan Attard, the minister said that one of the PN’s proposals in its electoral manifesto, states that “for pensions to remain sustainable, the private sector must build a new fund for pensions in the country.”

He said that other countries had implemented such a proposal, including the UK, which has businesses pay an additional 8% contribution towards all private employee pensions. Schembri said that other countries also have similar systems with a 10% contribution. 

The economy minister said that with a rate set at 10%, a business that employs 10 workers with an annual salary of €20,000 would have to pay an additional €20,000 themselves during the year in pension contributions.

He said this was just a rehash of a PN proposal from 2017, which in reality would mean an increase in social security contributions.

The economy minister also accused PN leader Bernard Grech of sneaking this proposal into the manifesto without explaining it to the public.

“Why isn’t this proposal clear? Why is the PN attempting to hide it rather than explain it?” Schembri questioned.

He added that the government increased pensions year on year without placing additional burdens on businesses and workers.

Attard criticised the PN’s economic incentives, adding that the party has not answered how they will calculate whether a company is compliant with the ESG principles.

Attard said that while Labour was not against adopting ESG frameworks, they must be based on a model which works for Malta.

He said that any changes need to be done “shoulder to shoulder” with businesses. “We want to remain pro-market and not force businesses to have to deal with more bureaucracy," he said.