In the editorial ‘Success fuels Budget expectations’ (September 7), the Times of Malta said that the General Workers’ Union was at first in favour of raising the national minimum wage but has now modified its stand and is calling on the government to grant a subsidy instead.

The Alliance of Pensioners’ Organisations would like to draw the GWU’s attention to section 58 of the Social Security Act, Chapter 318.

Among other things, this section states clearly that any form of fringe benefits paid to workers, besides the wage/salary, on which a social security contribution has not been paid is not valid to be considered by the Director of Social Services to calculate the pensionable income.

The pensionable income is one of the major factors that determine the rate of two thirds pension. The union should be aware of the fact that the income earned through a form of subsidy on which a contribution has not been paid cannot be considered for the calculation of the pensionable income.

In the light of the above explanations, as representative of thousands of workers, the unions, including the GWU, should be aware of the fact that the measures agreed upon are not in the interest of workers because, on a long-term basis, the rate of two thirds pension applicable will be put at a great risk.