No income tax in charged to minimum wage earners, the Finance Ministry said this evening in reaction to a comment by Opposition leader Joseph Muscat.

It explained that following today's pay raise, the minimum wage is €162.19 per week or €8,433 per year.  No tax was paid on this amount, independently if one used the single tax computation or other computations. 

Replying, the Labour Party said those who were on the minimum wage, which obviously included the statutory bonus, fell in the tax bracket between  €8501 and €14,500 and were therefore taxed.But it appeared that the prime minister did not know that minimum wage earners on single computation were so taxed.

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