ADPD calls for €3700 increase to 'inadequate' minimum wage

The minimum wage as calculated in Malta is not adequate for those who depend on it for their livelihood, political party ADPD has said.

“Workers and families depending on it simply cannot live a decent and dignified life. It is imperative that our country looks out for all its citizens and residents - all contributing to the economy - by ensuring that they have a minimum income that ensures a dignified, decent life,” said ADPD Chairperson Carmel Cacopardo, during a press conference held this morning in Castille Square, Valletta.

Referring to a study published by Caritas yesterday titled “A Minimum Essential Budget for a Decent Living 2020” which follows other Caritas studies published in 2012 and 2016, Cacopardo said it explained how the basic needs of vulnerable families could not be met if they are dependent on a single minimum wage. “The publication of the third Caritas report yesterday further reinforces the view that there are shortcomings in the way the minimum wage is being computed in Malta. The brunt of these shortcomings is mostly borne by vulnerable families.”

Cacopardo pointed out that Malta’s minimum wage is among the lowest in the EU. This wage did not give workers the dignity and respect they deserve, he said. “This is precisely why discussions are currently underway at a European Union level on a Directive for a uniform method to compute minimum wages across the Union. According to documents published with the proposed Directive in most European Union member countries with a national minimum wage, this minimum wage is too low compared to other wages. It is not enough for a decent living even though there has been an increase in recent years.

In the study on the impacts of this proposed measure it is explained that an increase in the minimum wage according to the criteria of the Directive described as a "double decency threshold" (60 percent of the median wage and 50 percent of the average wage) improves the wages of some 25 million workers in Europe.

The Caritas study concludes that a family consisting of two adults and two children needs €13,947 a year as a minimum to live decently. This is much higher than the minimum wage of € 181.08 per week in 2021, even when taking into account the June and December statutory bonuses, said ADPD.

The European Union's impact assessment, based on the minimum wage in 2019, draws similar conclusions as the Caritas study as it indicates the need for an increase of € 71 per week, or nearly €3700 a year, in the minimum wage in Malta to make it suitable for a decent living.

“It is obvious why the Maltese Government is opposing this proposed Directive. Its implementation not only improves the quality of life of those who are dependent on a minimum wage but also shakes to their foundations those sectors of the economy, protected by government, that are dependent on miserly and low wages,” accused Cacopardo.

However a statement yesterday by Prime Minister Robert Abela, saying that the Government was willing to seriously consider the proposals of the Caritas report “augurs well that even in Malta we will take the first steps to make the minimum wage a decent, and dignified income for all those who depend on it for their livelihoods,” he said.