Benefits to cost state €934 million in 2011

Whilst visiting the offices of the Department of Social Security in Msida and Zejtun, Minister of Education Dolores Cristina said government is committed to bring social services closer to the citizens, not only by improving and extending social benefits, but also through the use of the 25 offices situated around Malta and Gozo.

“Social services’ expenditure is one of the biggest costs government undertakes. For 2011 the social benefits’ expenditure will be at €733 million,” Cristina said, adding that an extra €195 million will go to the government’s contribution to National Insurance (N.I.)

“One must not forget the €5 million which go into the managing of the Department,” she said.

Cristina recalled how at the beginning of this year changes in Social Security Law, which were approved in Parliament in 2007, came into force.

“This is being done to safeguard the value of pensions in the future. Some 26,000 workers, who are currently aged 45 and earn more than €17,000, will be affected by this measure,” Cristina said.

“Had not these measures been taken, the value of the pension these people would receive would be reduced to 16% when compared to their salary,” she said. Cristina explained that increasing the N.I. contribution to €2.33 per week ensures adequate pension.

“By the time they retire the maximum pensionable income would have increased, raising the value of their pension to 60% of their salary.”

The Minister recalled how in the last Budget, Government undertook the duty to continue addressing the anomaly that exists in pensions services. “Thanks to the process which started in 2008, more than 6,200 pensioners will benefit from this measure,” she claimed.