Updated:Government insists minimum wage earners not taxed
Edward Zammit Lewis and Owen Bonnici
(Adds government reply)
The Labour Party said this morning that it would announce its proposals to reverse a situation when minimum wage earners on single computation were charged income tax.
MP Owen Bonnici and election candidate Edward Zammit Lewis said at a press conference at Labour headquarters that following the cost of living increase announced yesterday, and when statutory bonuses were included, the minimum wage rose to €8,945, well within the €8,500 threshold below which income was not taxable.
Dr Bonnici noted that during a press conference yesterday, the prime minister had repeated that minimum wage earners were not taxed, even though the finance minister appeared to be trying to correct him. (The Finance Ministry later issued a statement reiterating that minimum wage earners are not taxed)
He said that the Labour Party did not agree that minimum wage earners should be charged income tax and it was considering its options, one of which could be that of raising the threshold.
Government: Minimum wage earners not taxed
In a reply, the government insisted that minimum wage earners are not taxed and said that with the raise given yesterday, the minimum wage increased to €162.19 a week (€8433.88 a year).
This was lower than the taxable income of €8,500 for a single computation, €11,900 for a joint computation and €9,300 for a parent computation.
Any other income which would lead to the sum going over the non taxable amount would be taxed as any other income.
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j farrugia
Nov 30th 2012, 14:10
minn dejjem kien gvern ta sinjuri
Joseph Aquilina
Nov 30th 2012, 10:40
What is the problem with lejber; they are taxed on the bonus not their pay!!! What does lejber want??? To always have the middle class squeezed up till the last penny so that others; not interested in bettering their live paying zero tax!??? Can lejber be clear for once!!
Joseph Borg
Nov 30th 2012, 10:10
Biex ma tithallasx taxxa fuq il min. wage irid ma jigix intaxxat il bonus, ossijja mhux maghdud mal paga. Bonus huwa bonus u mghandux jigi intaxxati.
Paul Bajada
Nov 30th 2012, 08:03
It must be really painful for the PN cohorts to learn that not only PL shall retain "their" budget but it shall also enhance it. PL shall even ensure that minimum wage earners do not pay income tax!
What a difference to GonziPN - the first party in government who planned to tax minimum wage earners for the first time in maltese history and reducing income tax on the rich!
Noel Damato
Nov 30th 2012, 04:58
Il Prim Ministru u l-Klikka tieghu tant draw fil-LUSSU ta pagi , bonuses u hafna kumditajiet ohra li l-anqas biss ihossu t- tbatijiet li ghadej minnu l-poplu Malti bil jaghmel dawk is-sagrificji sa biex izomm familja. Dawn nies li mhux widnejhom ma l-art iridu jaghmlu izda jezaminaw il- kuxjenza.
scott brown
Nov 29th 2012, 19:57
what is so wrong with a single person earning in excess of euro 8500 paying tax? if anything, such a person should be incentivised to train/study more to find a better job and earn more. and yes pay more tax and contribute more to the economy.
under a labour govt, i used to earn half todays minimum wage and pay tax at 65%.
is this the proof that a PL govt. was going to freeze the minimum wage?
Jonathan Camilleri
Nov 29th 2012, 21:25
The national minimum wage is meant to be a basic means of substinence, not an incentive for anything, Mr. Brown.
mark borg
Nov 29th 2012, 21:42
under a labour govt, i used to earn half todays minimum wage and pay tax at 65%.
stop trying to fool people as the time you are refering you could have bought a terrraced house with a garden in a nice area for less than 6 thousand maltese liri ! not to mention electricity bills below 10 malta liri and filling your car with petrol for less than a tenner...plus what about the perks we enjoyed ?
scott brown
Nov 30th 2012, 08:36
@ mark borg
who is fooling who Mr. Borg. as a family of eight we did not even afford to have a geyser in the house and yet the electricity bill always exceeded Lm20. and a plot of land exceeded Lm4000 let alone a terraced house. A builduing permit depended on the likes of lorry sant. i built my house with during a five year freeze on my salary and you did not negate the 65% tax bands
Alfred Camilleri
Nov 29th 2012, 19:40
I wonder !! Are third country nationals entitled to these increases ? ?. Especially when they are working over a fourty hour week with less then the minimum wage and no quarterly bonus. How un-fair is this . So one should practice what they preach.
Oliver Grech
Nov 29th 2012, 18:56
It seems that Labour were never good at maths and additions. First the referendum and now this. I hope that no one from LP will have the bright idea to show us their results in Maths of form 2. Some things never change.
Brian Gatt
Nov 30th 2012, 09:50
It seems that from the TOP to the bottom PN should go to Maths Repetitions (Privat) Bonuses are a taxable income, when you add them up to the total wage (now increased to Eur8433.88 after the budget) it will give you a total of Euro 8885.77, which is well over the Euro 8500.00 threshold, hence taxable. Now any PN Lackey writing here cares to prove me wrong please be my guest.
joe muscat
Nov 30th 2012, 12:50
i think you have to repeat school in mathematics , you are proved wrong :)
T Mifsud
Nov 29th 2012, 18:48
Yes the bands will have to move, and the government is committed that minimum wage is not taxed!
T Mifsud
Nov 29th 2012, 18:44
This means that Labour, JM, Edward Scicluna and all CANNOT DO SIMPLE MATHS!
Ahseb u ara xi froga gejja bl'ekonomija!
mark borg
Nov 29th 2012, 22:56
zgur mhux akbar mil frogga ta 6 biljun dejn li akkumulajtu tal gonzipn
Henry S Pace
Nov 29th 2012, 18:36
' MINIMUM WAGE : this had increased to €162.19 a week (€8433.88 a year).
AaCCORDING TO MY CALCULATIONS :
MINIMUM WAGE: Euro 8433. 88 PA (162.19 PW)
Mid-Term/End of Term Bonus Euro 270.20
Cost of Living Bonus (March' Sept ) Euro 181.69 Total Total Amount Euro 8885.77
saviour frendo
Nov 29th 2012, 22:36
Good explanation Henry S Pace...now all those who commented can reflect on this and tell us non mathematicians if we are right or wrong,......OF COURSE THEY WILL BE TAXED .....WHO IS TRYING TO FOOL WHO??????
A. Sultana
Nov 29th 2012, 15:41
Loghob bil-kliem biex nimpressjonaw. Dawn l-istess nies li ma riedux izidu l-paga minima. Issa jridu jintoghgbu b'xi mod.
Jonathan Camilleri
Nov 29th 2012, 15:17
It is quite a sensible idea not to tax people who live by the already low minimum wage, since as the name states they are minimum wages.
Peppi Borg
Nov 29th 2012, 14:59
Gonzipn does not know what is happenning abot the minimum wage earners! But it knew well about the huge increase which was awarded to the cabinet!
Liza Zarb
Nov 29th 2012, 14:51
Gonzi kien wiehed li kullhadd jigi taxed sa massimu ta 25 per cent , jekk wiehed jara sewwa x ghamel il-bierah , mhux hekk ghamel ghax ghal -2013 se tinzel ghal 32 per cent, u dan it-term ta dan il-gvern ikun maghluq.
Votant dan il-gvern qarraq bik diversi drabi, ieqaf ftit ,ahseb sew u thalliex lil qalbek li telgheb lil mohhok, wara tkun hsiebt ivotta labour.
mark borg
Nov 29th 2012, 19:10
u dan ghax jaf li ma ghandux cans f miljun li jerga jitla ..
Oliver Grech
Nov 29th 2012, 13:51
Is reducing the minimum wage one of the options, that too would not trigger tax?
Oh wait...i understood. Labour will be voting against the budget and hence the increase mentioned in the government will not come into effect and hence they will earn less than Eur8,500 and hence pay no tax. But poor people they would remain with less money in their pockets.
John Zammit
Nov 29th 2012, 13:41
Anyone who can give a rise of €600 will not bother about the man in the street
Malcolm Farrugia
Nov 29th 2012, 13:36
After all the noise made by GonziPn with regards to the minimum wage, where he tried to put PL under a bad light, his arguments came down to nothing. Lawrence Gonzi doesn't really care about those who are minimum wage earners in our society.
This clearly proves that while PL is constantly feeling the nation's pulse ticking, on the other hand GonziPn is simply playing with words at our expense!
Joseph Fenech
Nov 29th 2012, 14:00
The Nationalist Government has been building brand new and modern schools for the children of the working class ( Under labour it was Nissen huts/derelict military hospitals), State of the art hospital for the benefit of the workers ( Under labour everyone knows what St. Luke's was), What was L - Imgiered for the workers under labour like ? go and visit it now and so on .....
James Micallef
Nov 29th 2012, 13:33
"Considering it's options"??? PL has had 5 years to consider options and come up with solutions. So far all we have heard from them is desired targets. No word as to how they plan to achieve these targets. PL trying to sell pie-in-the-sky without having a recipe for it
Mario Farrugia
Nov 29th 2012, 13:14
We are only talking about a yearly taxation on Euro445 which at 15% is Euro 67 yearly or 18c per day. !!! Surely PL are not serious on this.
Johan zammit
Nov 29th 2012, 13:28
It may look chicken feed to you but those with minim wage and pensioners are a relief as every € cents count
Oliver Grech
Nov 29th 2012, 13:42
Well said Mario. The study and all would be more costly. They just want to be popular.
Joseph Grech Attard
Nov 29th 2012, 14:35
Mario and Oliver, last year's budget increased the wages by just over 21c per day and, yet, GonziPN government and supporters (of which, maybe, you form part) all approved and clapped their hands. Why not be consistent, please, in your arguments? 21c is not much more than 18c. Given that there are more poor in our society, it would, at least, help them. Surely, it is not enough but ...
Matthew Tanti
Nov 29th 2012, 13:14
Wara dawk id-diskorsi kollha li smajna u tkazar dawr manipulazzjoni ta' diskors ta' JM dwar il-paga minima stennejt l-GonziPN kien se jgholli l-paga minima. Imma bhas-soltu l-PN jinqeda minn manuvri biex jinganna, jwighed u ma jwettaqx.
Johan zammit
Nov 29th 2012, 13:08
Do anyone believe that this was not an election budget intended for a certain class of people that the PN wants to win back ?
Joe Borg (Senior)
Nov 29th 2012, 12:59
Min qed jghid li minimum wage tigi 445 euro inqas!!! X'ghandu x'jaqsam li qed tghid!!!
Thomas C. Cassar
Nov 29th 2012, 12:56
Il-PL jaghmel tajjeb jghin lil tal-paga minima b'dan il-mod li jkun ifisser li ma jitfax piz fuq min ihaddem.
Prosit!
Emmanuel Cachia
Nov 29th 2012, 12:42
Ara veru ragunament bla sens dan.
1. It-taxxa li se tithallas hija fuq bonuses u mhux fuq il-paga.
2. Niddubita li xi hadd fuq minimum wage jippreferi jaqla 445 euro inqas minflok ihallas 66 euro taxxa.
Mela ejja nghidu l-fatti kif inhuma...
Norbert Vella
Nov 29th 2012, 13:00
Mela ejja ha nispjegalek jien Sur Cachia xi tghid din l-istqarrija ta hawn fuq.
Owen Bonnici qieghed jghid li qieghdin jikkonsidraw li ic-cealing tat-taxxa tal-15% ikun jibda min €9000 minflok €8500, b'hekk min qieghed fuq il-minimum wage jiehu kemm il-Bonus u is-€66 li kieku ser ikollu ihallas taxxa.
Nahseb li min qieghed fuq il-minimum wage jippreferi li ma jhallas xejn taxxa hux.
Joe Borg (Senior)
Nov 29th 2012, 13:00
Min qed jghid li minimum wage tigi 445 euro inqas! X'ghandu x'jaqsam li qed tghid!
Emmanuel Cachia
Nov 29th 2012, 17:10
Fhimt ezatt tibzax imma mhux dak il-punt. Il-paga minima ghall-2012 kienet 8221 eur + 512 eur bonus, total ta' 8733 eur. Dak ifisser li fl-2012 min kien fuq paga minima diga kien qed ihallas 35 eur taxxa fuq il-bonus. Il-paga minima ghall-2013 hija ta' 8433 eur, taht ic-ceiling ta' 8500 eur. Meta s-sena d-diehla taqbzu, gholliha. Imma llum kumment hekk bla sens u jintqal biex jigbed is-simpatija.
Joseph Fenech
Nov 29th 2012, 12:30
Tell me from where you will get the money back then, and i will seriously consider to vote for you!!! But till now you are just promising nice things without bad things and that is not good at all.
George Smith
Nov 29th 2012, 12:41
Kieku int ghandek paga minima xkont tajt Mr Fenech ? Il hajja toghla ghall kullhadd sa fejn naf jien.
paul camilleri
Nov 29th 2012, 12:57
Mr Smith maybe you forget the past budgets where people with minimum wage got all the good things, issa the budget is aimed for the middle class people which make up for quite a lot of Maltese people. not forgetting children allownce and wage increases and other benifits that the minimum wager is getting dont expect the goverment to give you everything in every budget not even Mintoff done that!!
Mario Borg
Nov 29th 2012, 13:02
Bhal ma gab il- flus li ma kienu fl'ebda budget,ghas 600 euro zieda fil-gimgha u bhal ma gab il-flus ghal-pont to no where u bhal ma gab il-flus ghal bieb bla saqaf u tijatru bla saqaf u tijatru l-iehor il-parlament u bhal min fejn gew il-flus ghal konsulenzi u d- direct orders.Min hemm siehbi jigu il-flus.Bid-differenza li dawn imorru fil-bwiet tan-nies u mhux kapricci u tijatrin.
paul camilleri
Nov 29th 2012, 12:25
mmmm maybe this is going to turn out like the electrcity bill reduction? pooofffffff into thin air
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