26/10/2026
UHM - Voice of the Workers welcomed the continuation of energy and fuel subsidies and the introduction of the €1,000 bonus for workers, but warned that Budget 2027 fails to address the needs of workers who do not benefit from measures targeting families with dependent children.
The union said the government's commitment of around €400 million to maintain energy and fuel subsidies was positive, although the long-term sustainability of these subsidies remained an issue requiring attention and discussion.
UHM also welcomed the €1,000 bonus, which it said the government had been under pressure to deliver. However, it stressed that the payment was a bonus rather than a permanent improvement in wages or the tax system.
The union described changes to tax-free income thresholds for families with two or more dependent children as a positive step, particularly for middle-income households raising children. It nevertheless noted that other workers, including those whose children have grown up, had not been offered comparable tax relief.
UHM highlighted the example of a worker earning €25,000 a year without children, saying that, apart from the cost-of-living adjustment and the €1,000 bonus, this worker would see no further improvement.
It also criticised the continued taxation of the cost-of-living adjustment, arguing that workers should receive the full amount.
The union reiterated its opposition to increases in the minimum wage being decided through what it described as an arbitrary process, instead calling for lasting wage improvements through collective bargaining agreements.
While welcoming the €10 weekly pension increase and improvements to social benefits, UHM said several proposals it had raised remained unaddressed. These included a pilot 25-hour working week, full pay during injury leave, five days of carers' leave, second-pillar pensions and measures to address free riders.
The union also raised concerns about higher tourism tariffs, saying their economic impact on employment and the sector's competitiveness required further assessment.
UHM said that Malta needed to move away from an economy focused on quantity towards one based on quality, adding that this ambition was not reflected sufficiently in the budget speech.
Trade unions and organisations have begun reacting to Budget 2027, highlighting measures they welcomed while raising concerns about areas they believe require further attention. The Malta Union
