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Malta BudgetGuide

People · Pensioners

Budget 2027 for pensioners

A €10 weekly pension rise including COLA, a higher tax-free pension threshold and changes for widows, service pensioners and spouses without a pension.

Key points

  • Retirement, invalidity, widows' and age pensions rise €10 a week from January 2027, including COLA.
  • Pension income up to €37,624 a year is tax-free, up €520.
  • Every pensioner gets the same €21.53 weekly cost of living bonus.
  • Spouses can transfer contributions so a spouse without a pension may qualify.

Measures that affect you

Budget 2027AnnouncedBudget measure

Cost of living adjustment (COLA) 2027

The 2027 cost of living adjustment is announced at €6.41 per week, up from €4.66 per week in 2026.

€6.41 per week

Speech printed p. 16 · PDF p. 20

Budget 2027AnnouncedBudget measure

Pension increase 2027

Specified pension categories rise by €10 per week in 2027, a figure that includes COLA.

€10 per week (including COLA)

Speech printed p. 19 · PDF p. 23

Budget 2027AnnouncedBudget measure

Carer at Home grant 2027

The Carer at Home grant is announced at €9,800 per year for 2027, up from €9,000 per year in 2026.

€9,800 per year

Speech printed p. 23 · PDF p. 27

Budget 2027Rules pendingBudget measure

Additional COLA support payments 2027

The additional COLA mechanism runs again, paying €200 to €1,500 a year depending on disposable income and household size. Over 100,000 households are expected to benefit.

€200 to €1,500 per year

Speech printed p. 22 · PDF p. 26

Budget 2027Rules pendingBudget measure

Pension income tax threshold 2027

A pension-income tax threshold of €37,624 per year is announced in the specific pension context set out in the speech.

€37,624 per year

Speech printed p. 21 · PDF p. 25

Budget 2027Rules pendingBudget measure

Transfer of pension contributions between spouses

From 2027 a spouse with a pension can transfer contributions to a spouse without one, so more married women qualify for a pension.

Speech printed p. 19 · PDF p. 23

Budget 2027AnnouncedBudget measure

Full two-thirds pension for widows

Over 7,000 widows receive a further increase so all widows get the full two-thirds pension of their late spouse.

Speech printed p. 20 · PDF p. 24

Budget 2027AnnouncedBudget measure

Flat cost of living bonus for pensioners

Every pensioner in 2027 receives the same cost of living bonus of €21.53 a week, whatever their retirement year.

€21.53 per week

Speech printed p. 20 · PDF p. 24

Budget 2027AnnouncedBudget measure

Service pension disregard

The part of a service pension ignored for social security pension purposes rises by €300 a year instead of €200.

+€300 per year

Speech printed p. 21 · PDF p. 25

Budget 2027AnnouncedBudget measure

Disability benefit retained on pension

People with a disability on a contributory pension keep 20% of their previous disability benefit, up from 10%.

20%

Speech printed p. 21 · PDF p. 25

Budget 2027AnnouncedBudget measure

Bonus for people without enough contributions

People, mainly married women, who do not qualify for a pension see their bonus rise by €333.32 a year, to between €933 and €1,383.

€933 to €1,383 per year

Speech printed p. 22 · PDF p. 26

Budget 2027AnnouncedBudget measure

Closure of past-anomaly compensation schemes

Four compensation schemes for former Drydocks, Shipbuilding, Gas Board, Telemalta and Rediffusion workers end in 2027.

Speech printed p. 25 · PDF p. 29

Related tools

Pension increase€10 a week over a year.

Common questions

Is the €10 increase on top of COLA?
No. The speech says the €10 includes the cost of living increase.
What is the tax-free pension limit in 2027?
€37,624 a year of pension income, up €520. How it combines with work income is not set out in the speech.
Will the retirement age or contribution rates rise?
No. The speech says both stay the same.

Independent editorial note: figures are taken from Budget announcements. Announcements are not law until enacted. Check the source library and official guidance before acting.