Abela: 33,000 public service employees to benefit from substantial pay increases

Prime Minister Robert Abela has announced 33,000 public service employees will benefit from substantial pay increases in a new collective agreement. 

Abela was speaking at the Old University building in Valletta ahead of Budget 2025 on Monday which he said will see a reduction in income tax.

He said the final details on the new collective agreement are being ironed out.

“We met people, we went out into the communities, and we listened to them about their reality,” Prime Minister Robert Abela said on Sunday. 

The Labour leader also said the largest ever tax cuts will be announced during Monday's budget speech. The prime minister said a widening of tax bands would result in the largest-ever reduction in income tax.

Abela said budget day has now been transformed into “budget week,” with individual ministries announcing new initiatives throughout the week.

He said the country’s deficit is being lowered without the need of government introducing any new taxes. 

The Prime Minister said: “tomorrow's Budget will be different because while it will benefit people financially, the quality of people's lives must be improved."

He said this will be possible after the Labour government “went into the towns and villages” and listened to people’s pleas and needs. 

Abela said “this exercise must continue to be done in a sense of national unity and the discussion must be free of political partisanship.”

The Prime Minister noted that Malta's economy is robust, boasting a growth rate of 5%, contrasting with slower growth in other countries.

He said the Home Affairs Ministry is leading a labour migration policy to streamline the flow of migrant workers into sectors where they are needed.

He added that the government has not hesitated to crack down on industries, such as the cab sector, where there are already sufficient workers.

The prime minister contrasted Malta's economic growth rates of 4-5% with the declines seen in other European economies.

"The word unemployment no longer exists in our vocabulary,” he said.