Mayors will also receive wage increase

All 68 mayors are set to benefit directly from the government’s decision to increase the honoraria paid to parliamentarians since their salaries are pegged to those of MPs.

The rise in mayors’ wages – which are calculated in accordance with the size of the council they head – is expected to cost the taxpayer €220,000 a year, in addition to the €4 million to be paid out to all MPs during this legislature.

Mayors on councils with 11 to 13 councillors (five in all) receive two thirds of MPs’ salaries and will see their annual earnings jump from €12,741 to €17,847

Mayors of councils with seven to nine councillors (26 in total) receive half the salaries of MPs. Their incomes rise from €9,556 to €13,385.

Meanwhile, salaries of mayors of councils with five councillors (37 in total), who receive a third of MPs’ pay, will rise from €6,370 to €8,923.

When contacted yesterday, Parliamentary Secretary Chris Said, who is responsible for local councils, said the increases will be backdated to January 1.

Finance Minister Tonio Fenech confirmed in Parliament last week that the standard salary of all 69 MPs will rise to €26,771 from €19,112. The increase will be backdated to May 2008. In addition to their honorarium as MPs, ministers are also paid a salary of €42,000 and parliamentary secretaries receive €40,100.

The rise has been considered by many to be ill-timed given the economic climate. However, there is wide recognition that Malta’s parliamentarians are underpaid.

Dr Said pointed out that local councils today had more responsibilities, with the mayors – now elected directly by voters – playing a pivotal role.

“This increase should incentivise mayors to dedicate more time and energy to the council.”

Asked whether he believed such increases were ill-timed, Dr Said pointed out that the increase was decided a while ago.

“The responsibilities on local councils will keep increasing so we need to make sure mayors are adequately compensated.

“I know mayors who put in lengthy hours at their council offices,” he said.

As from last January, all mayors and councillors were also given an expense allowance of €1,600 and €1,200 a year respectively, funded by the local council fund.