Momentum is calling on the government to address what it describes as, “a long-standing injustice in the country’s pension system that unfairly penalises young workers between the ages of 16 and 18.”
The Party explained that under Malta’s Social Security Act Cap. 318, pension contributions are only officially counted from the week a person turns 18, even though many young people start working and paying social security contributions as early as age 16.
Dr Matthew Agius, an executive member of Momentum, said, “this is a clear form of age discrimination. Young people who start working at 16 or 17 contribute to the economy, pay taxes, and fulfil all their obligations like any other workers, yet their pension contribution clock doesn’t start ticking until they’re 18. That’s two full years of hard work that simply vanish from their future pension entitlement.”
Momentum noted that this inequity is further compounded by the increasing retirement age, which currently stands at 65 and may continue to rise in the years ahead.
“It is deeply unfair that young people are expected to work longer into their lives, yet the system denies them recognition for the work they do at the very start of their careers,” added Dr Agius.
Momentum said that it therefore proposes that the two years between ages 16 and 18 should be included in the calculation of pensionable contributions for all individuals in gainful employment.
“This reform would ensure fair and equal treatment across generations, while recognising the economic and social contribution that Malta’s young workforce makes from the outset of their employment journey,” it said.
Momentum went on to say that it hopes that such a measure will be included in the upcoming national budget, as a “concrete step towards eliminating this inequity and building a fairer, more inclusive pension system for all workers.”
“We are also proposing the entrenchment in our Constitution of non-discrimination on the basis of age,” concluded Dr Agius.
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