The Labour Party has stated that Budget 2026 will continue to strengthen and support Maltese and Gozitan families through several new initiatives reflecting its principles of social justice.
During a press conference, Parliamentary Secretary Andy Ellul said that following last year’s largest tax cut in history, the Government is now introducing a reduced tax rate for parents to provide direct financial assistance to families with children. Ellul noted that the Government remains committed to improving employment conditions and promoting a better work-life balance. Discussions with social partners are expected next year to extend Maternity, Paternity, and Parental Leave, alongside the introduction of Miscarriage Leave, NPICU Support Leave, and Bereavement Leave for parents who lose a child. The Government also aims to expand remote working opportunities for greater employee flexibility.
Labour MP Cressida Galea said that around 68,000 families will benefit from the new Parent Rate, generating an estimated €160 million in combined savings. She explained that this new tax rate could result in reductions of up to €10,000 per year, with an average of €2,400 in family savings over three years. Galea added that the birth and adoption bonuses will each rise by €500, while the children’s allowance for low-income families will increase by €250.
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