Social Security Contributions Credits

Social Security Contributions Credits are only awarded when:

• Pre-entry Credits: A person is registered under Social the Security Act (Cap. 318.) for the first time will be awarded pre-entry credits up to a maximum of one-hundred and four (104) contribution weeks, depending on the date of the first entry.
• Voluntary Credits (Abroad): A person who is an ordinary Maltese resident or else can be registered in Malta under the Social Security Act while doing voluntary work in a foreign country may be awarded Social Security Contributions Credits for up to a maximum of five (5) years (two-hundred and sixty (260) contributions) in a period of ten (10) years. This award is at the discretion of a special board and claimant must submit a request to the Director of Social Security and provide proof of such voluntary work.
• Voluntary Credits (Malta): A person who is an ordinary Maltese resident or else can be registered in Malta under the Social Security Act, is under the age of twenty-five (25) years and is doing voluntary work in Malta or abroad and resumes employment after finishing the voluntary work, is also entitled to credits for up to a maximum of five (5) years in a period of ten (10) years.
• Unemployment Benefit Credits: An unemployed person is in receipt of Unemployment Benefit; Special Unemployment Benefit or have an Unemployment Benefit Claim continued or converted to Unemployment Assistance.
• Occupational Injury Benefit Credits: A Self-occupied person who is injured at the time and place of work, and has an accepted Injury Benefit Claim is awarded credits for the duration of the Claim.
• Sickness Benefit Credits: An Employed person who is on sick leave on no-pay, or Self-occupied person who are in receipt of Sickness Benefit or has a continued Sickness Benefit Claim after Medical Board Decision but exhausted benefit payment.
  Credits are awarded where applicable for each whole week of accepted Sickness, Occupational Injury, or Unemployment benefit claims.
• Parental Credits: Parents who are ordinary Maltese residents or else can be registered in Malta under the Social Security Act, who are absent from their employent because their children are undergoing treatment for rare diseases are given credits of Social Security contributions up to eight (8) years.
• Injury Benefit Credits: A person is in receipt of Injury Benefit (only in case of a Self-Occupied person).
• Carers Credits: A person is in receipt of a Carers Assistance / Increased Carers Assistance and has resigned from employment or is on unpaid leave. Social Security Contributions Credits are only awarded if a person passes the Social Security Contribution Test (valid for contributory pension purposes only).

It is important to note that Carers Credits are valid for contributory pension purposes only.

• Widow/er’s Credits: A contribution credit shall be awarded to a widow/er, for every week from widowhood, assuming that the late spouse has paid at least one-hundred and fifty-six (156) Social Security contributions before his/her demise, and also assuming that if gainfully occupied, the widow earns less than the National Minimum Wage.
• Service Credits: An ex-Police; ex-Army officer; ex-Correctional Facilities or ex-Civil Protection officer who has completed twenty-five (25) years of service and is in receipt of a full Treasury Pension is eligible for credits when not in a gainful occupation.
• Libya Credits: A person who is an ordinary Maltese resident or else can be registered in Malta under the Social Security Act and who submits proof of contributions paid in Libya after 1990 while being an ordinary Maltese resident, will be credited for the same amount of contributions.
• Study Credits: A student who is an ordinary Maltese resident or else can be registered in Malta under the Social Security Act while following a full-time course of studies or instruction; upon completion of course and once transcript is provided, is eligible for Social Security Contributions Credits depending on the course level and date of birth as indicated in the table below. No credits are due if the course being attended is of less than one (1) or less than two (2) semesters.

• Child Credits: A person who is born between the 1^st of January 1952 and 1961 and who reaches a social security pensionable age or whose contributory pension is re-assessed, may be awarded up to two (2) years of Social Security Contributions Credits for each of the first three (3) children even if the parent does not return to employment after the birth of child/children. A further one (1) year of Social Security Contributions Credits for any child born after the third 3^rd) child, may also be awarded provided that the parent returned to employment for a minimum number of years equal to the number of years that may be awarded from the fourth (4^th) child upwards.It is important to note that children on whom child credits may apply, should be residing in Malta at any time when such children were aged between zero (0) to six (6) years.

  Example:

• A family with three (3) children or less, may be awarded Social Security Contributions Credits (maximum six (6) years in total) even if the parent is not employed/self-occupied after birth.
• A family with four (4) children or more, may be awarded Social Security Contributions Credits (maximum six (6) years in total) for first three (3)) children, though no Social Security Contribution Credits are awarded from fourth (4^th) child onwards if the parent is not employed/self-occupied after birth.
• A family with four (4) children or more, may be awarded Social Security Contributions Credits (maximum six (6) years in total) for the first three (3) children and up to one (1) year per child from fourth (4^th) child upwards if the parent returns to employment (employed/self-occupied) after the birth for at least the same number of years as awarded from fourth (4^th) child onwards.

In the case of a family having a disabled child, Social Security Contributions Credits are doubled in the  aforementioned scenarios.

A person who is born on or after the 1^st of January 1962 and who reaches a social security pensionable age or whose pension is reassessed, may be awarded up to four (4) years credits for each of the first three (3) children even if the parent does not return to employment after the birth of child/children. A further two (2) years Social Security Contributions Credits per child born after the third (3^rd) child may also be awarded provided that the parent returned to employment for a minimum number of years equal to the number of years that may be due from the fourth (4^th) child onwards.

  Example:

• A family with 3 (three) children (or less) may be awarded Social Security Contributions Credits (maximum twelve (12) years in total) even if the parent is not employed/self-occupied after birth.
• A family with four (4) children (or more) may be awarded Social Security Contributions Credits (maximum twelve (12) years in total) for first three (3) children but no credits from the fourth (4^th ) child upwards if the parent is not employed/self-occupied after birth.
• A family with four (4) children, or more may be awarded Social Security Contributions Credits (maximum twelve (12) years in total) for the first three (3) children and up to two (2) years per child from fourth (4th) child upwards if the parent returns to employment (employed/self-occupied) after the birth of the fourth 4th) child for at least the same number of years as awarded from fourth (4th) child onwards.

In the case of a family having a disabled child, Social Security Contributions Credits are doubled in the aforementioned scenarios.

• From January 2024 a parent who first has children and then enters in a gainful employment, will also be entitled to credits for raising children, in this way as parents who first started working and then had a career break for childcare purposes. Credits continue to be awarded automatically up to the first 3 (three) children and additional credits are given if there are more children in the family and if the parent returns to work after raising the children. From the fourth child onwards, additional credits are given if the parent has returned to work after raising the children for the same amount of credited weeks as those worked up to a maximum of two years per child (parents born after 1962). Thus, when the parent reaches retirement age, may be entitled to a higher pension.

KINDLY NOTE THAT THE SAME APPLIES TO CHILD ADOPTION CASES AND FOSTER CARE CASES (THE LATTER BEING AWARDED ACCORDING TO THE MERITS OF THE CASE)

It is important to note that Child Credits are:

1. Not viewable in the Contributions History as they are added according to the necessity upon the person applying for the Retirement Pension.
2. Awarded until the child age of 6 (six), or in case of child with special needs, until the age of 8 (eight) years,
3. Not awarded during overlapping periods already covered with social security contributions through gainful occupation; already covered by      social security credits from other contributory benefits; or already covered by credits for siblings born earlier or at the same time in case of multiple pregnancies.

Exemption of Social Security Contributions eligibility

• An employed person who is working less than eight (8) hours per week but earning more than seventeen euro and fifty cents (€17.50) per week (exceeding nine-hundred and ten euro (€910) yearly) with the same employer, is obliged to pay Class II Social Security Contributions (self-occupied rate), in view that employment under eight (8) hours is not considered as an insurable employment and employer is not obliged to pay his share of contributions.
• Any person who is gainfully employed as a Self-Occupied Person, whose annual income or proportional weekly equivalent is less than nine-hundred and ten euro (€910).
• A single person who is not gainfully occupied and who is considered as a Self-Employed person whose income is from other resources, such as Interests, Rents and Investments and whose yearly income does not exceed one-thousand and five euro (€1,005).
• A person who is hosting students on a part-time basis has the option not to pay Social Security Contributions.
• Employers, who employ a disabled person for three (3) years or more, will be refunded his first three (3) years share of Social Security Contributions by the Commissioner for Revenue.
• An elder or disabled person who employs a carer may apply for an exemption for his share of Social Security Contributions. The employee would still have to pay his share of Social Security Contributions.

Importantly, one must always request an Exemption Certificate from the payment of Social Security Contributions on an annual basis, except for those persons hosting students, and Self-Employed persons who are not gainfully occupied and whose income derives from Interests, Rents and Investments.