Retirement
Contributory Pensions
Contributory retirement pensions can be divided into two schemes, the
flat rate pensions and the two-thirds pensions.
The flat rate pensions are awarded to pensioners who also receive a
service pension and to pensioners who have a low pensionable income. The two-thirds
pensions are awarded to all other pensioners.
A full retirement pension requires a yearly average of at least 50
contributions from 1956 or from age 19 (whichever occurs later) and/or from age
18 if born after 1958 up to the last full year prior to the year of retirement.
With effect from January 2014, the pension age has increased to 62 years
for both males and females and the accumulation of contributions for a full
two-thirds pension has increased to 35 years.
Statutory Pension age is as follows:
| 1952 and 1955 |
62 |
|---|
| 1956 and 1958 |
63 |
|---|
| 1959 and 1961 |
64 |
|---|
| 1/1/1962 and onwards |
65 |
|---|
A person can opt to retire at age 61, provided he/she is not in any gainful occupation and has paid the stipulated contributions between age 18 and date of retirement as follows;
| 1952 and 1961 |
1820 |
|---|
1962 and 1968 |
2080 |
|---|
| 1/1/1969 and onwards |
2132 |
|---|
Incentives for persons keeping their employment beyond their Pension age.
This is the first step that the Government of Malta took and was initially an incentive open to workers in the private sector and self-occupation but later extended to the public service and sector as follows;
| 61 |
62 |
5 |
62 |
|---|
| 62 |
63 |
5.5 |
63 |
|---|
| 63 |
64 |
6 |
64 |
|---|
| 64 |
65 |
6.5 |
65 |
|---|
* without claiming their retirement pension at the retirement pension age
Those opting to postpone their Retirement Pension award for more than one year, will have their pension percentage increase accumulated as follows;
| 61 |
63 |
10.5 |
63 |
|---|
| 61 |
64 |
16.5 |
64 |
|---|
| 61 |
65 |
23 |
65 |
|---|
| 62 |
64 |
11.5 |
64 |
|---|
| 62 |
65 |
18 |
65 |
|---|
| 63 |
65 |
12.5 |
65 |
|---|
* without claiming their retirement pension at the retirement pension age
The percentage pension increase is cumulative and will be paid till date of pensioner’s demise.
The percentage pension increase will be payable to all eligible persons in receipt of a Contributory Retirement Pension who satisfy the above conditions including those in receipt of the Maximum Two Thirds Pension.
The percentage increase is payable apart from other pension increases, included Cost of Living Increases.
The percentage increase is transferred in the case of a Widows Pension.
More information
The Incentives for persons keeping their employment beyond reaching 61
years of age or their Pension age, came into effect from 1st January 2016 for the
private sector and self-occupied persons, and with effect
from 1st January 2019 it was extended to public service/sector
employees.
Therefore, a person who was eligible for a Contributory
Retirement Pension at least at age 61, but opts to claim his pension at least
with a one year deferral, will benefit from the mentioned pension percentage
increases. This increase will accumulate yearly as the pension award date is
postponed. An
employed person that opts to retire after their statutory pension age, needs to
make an agreement with his/her
employer.
Hereunder are
three examples that will help in explaining this new incentive (assuming that
the cost of living increase will be €1.75 weekly).
1. A person entitled to a contributory pension of €8,000 per annum (€153.84 per week) at age 61.
| 62 |
61 |
€8464 |
€162.77 |
|---|
| 63 |
61 |
€8974 |
€172.58 |
|---|
| 64 |
61 |
€9433 |
€181.40 |
|---|
| 65 |
61 |
€10139 |
€194.99 |
|---|
Therefore, if a person who is entitled to a contributory pension of €153.84 per week at age 61, continues employment till age 65 and thus claims his/her pension at age 65, would have his pension entitlement increase to €194.99 per week, a net increase of nearly €41.15 weekly.
2. A person entitled to a contributory pension of €9,500 per annum (€182.69 per week) at age 62
| 63 |
62 |
€10039 |
€193.06 |
|---|
| 64 |
62 |
€10632 |
€204.46 |
|---|
| 65 |
62 |
€11280 |
€216.93 |
|---|
Therefore, if a person who is entitled to a contributory pension of €182.69 per week at age 62, continues employment till age 65 and thus claims his/her pension at age 65, would have his pension entitlement increase to €216.93 per week, a net increase of nearly €34.24 weekly.
3. A person entitled to a contributory pension of €11,500 per annum (€221.15 per week) at age 63
| 64 |
63 |
€12139 |
€233.44 |
|---|
| 65 |
63 |
€12842 |
€246.96 |
|---|
Therefore, if a person who is entitled to a contributory pension of €221.15 per week at age 63 and continues employment till age 65 and thus claims his/her pension at age 65, he would have his pension entitlement increased to €246.96 per week, a net increase of nearly €25.81 weekly.
Non-Contributory Age Pensions
Unemployed persons who are residents in Malta, over 60 and do not qualify for a contributory retirement pension because they do not have the minimum number of contributions paid or credited, may be entitled to a Non-Contributory Age Pension if they satisfy the capital and income means test.
Invalidity Pensions
Contributory invalidity pensions are awarded to persons who have at least paid 250 contributions and are suffering from a medical condition which according to the medical board of the Social Security Department renders them as permanently incapable for any full-time and/or any part-time employment.
Such persons must be incapable for work (suffering from their medical condition) for at least six months prior to their claim and in continuous employment and/or registering for work on the Part 1 register held by Jobsplus for at least one (1) year.
There are eight rates of Invalidity Pension according to the yearly average of contributions paid and/or credited and the civil status of the claimant. These rates are not related to the salary earned while in employment.
Widows Pensions
Contributory widow’s
pensions are awarded to widows whose spouse had paid an average of 15 contributions during their lifetime. It
may also be payable in cases where the late spouse died as a result of a personal
injury during the course of their duties (employment or self-employment).
A
widow's pension is also payable in full without any deductions if widow is
carrying out a full-time gainful occupation and, where a widow re-marries, a
flat rate widow's pension will be due.
Living Abroad
Maltese Citizens living in Australia/Canada/New Zealand
In order for Maltese nationals residing in Australia/Canada or New Zealand to claim a Maltese pension, they should lodge a claim through the social security institution of either country.
Maltese Citizens living in European Union Countries
In order for Maltese nationals residing
in an EU country to claim a Maltese pension, they must essentially lodge a
claim through the social security in their country of residence. If the persons
concerned had been insured in their country of residence, they should lodge a
claim through the social security of the same country. If the Maltese nationals
concerned, reside in an EU country but never worked there, the application
should still be lodged through the social security of the same country. The
claim will then be forwarded for processing to the social security department
of Malta by that same country of residence.
Maltese Citizens Residing in Non-European Countries (Other than Australia, Canada and New Zealand)
In order for
Maltese nationals residing in a Third country to claim a Maltese pension, they
should lodge an application directly with the Department. This can be done
either by downloading the claim forms and sending them by post or by lodging a
claim physically while on holiday in Malta.
Claim forms for
each type of pension can be downloaded from this website and selecting the Bilateral
Agreements section.