Joseph Farrugia, director general of the Malta Employers Association (April 30, 2017), among other things, has stressed the point that the rate of the national minimum wage has remained the same for persons aged 18 and over as set up by the Department of Industrial and Employment Relations.
In 2017 the basic rate of the national minimum wage was €169.76 per week. Now it has transpired that according to a document issued by the Department of Social Security dealing with contributory and non-contributory rates of benefits for the year 2018, the basic rate of national minimum wage increased only by the cost of living of €1.75 per week, and now is €171.51 per week.
This proves that Farrugia’s statement was correct and to the point. It simply flies in the face of all the distinguished guests who attended the ceremony to celebrate the increase of €6 per week in the minimum wage.
It has been confirmed that a person becomes entitled to the first increase of €3 in his wage after he/she completes a full year and starts the second year in employment with the same employer. Another increase of €3 per week will be awarded where the worker starts the third year in employment with the same employer.
Therefore it is clear that the basic wage on starting employment is €171.51 per week with effect from January 1, 2018, and no changes were effected.
In the light of the above, can we have some information of what will happen to the wage of workers who become redundant during the second or third year of employment and find another job with a new employer? There is a need for further clarifications as it appears that the wage will be reduced to the basic minimum wage excluding the €6 increases earned during the previous employment.
In the circumstances it has to be pointed out that section 50 of the Social Security Act provides clearly that the rate of the national minimum pension depends entirely on the rate of national minimum wage. In fact, the law states that the rate applicable to a married person maintaining a wife is 4/5 of the national minimum wage where as a single person is entitled to 2/3 of the minimum wage. This means that if the €6 increase was added to the basic wage of €171.51 per week, the rate of national minimum pension applicable would result to be higher.
Any similar manoeuvres carried out behind the backs of pensioners and low-wage earners are deplorable and should be avoided
To compensate for this unfamiliar and unwarranted measure which is unjust to both workers and pensioners, the government increased all rates of pensions by €2 per week from January of this year.
From the above it may also result that there is the possibility that the €6 increase is being paid in the form of an allowance/fringe benefit and not as an increase in the minimum wage. If this is the case then there is another problem for pensioners as the increases cannot be considered to readjust the rate of minimum pension applicable as required in terms of law.
In this unpleasant scenario, the Alliance of Pensioners Organisations is concerned and sad to note that workers and pensioners alike were let down by union representatives first and foremost and by all other distinguished guests who were present to celebrate a historic occasion about an increase in the minimum wage, which ultimately did not materialise.
The general feeling is that the ceremony was well planned and orchestrated as it appears that all those present may have acknowledged the fact that the minimum wage is being increased by €6 per week. However, now it can be considered as an illusion or just a fake.
Pensioners, workers on the minimum wage and persons of goodwill should start to celebrate when the distribution of wealth and the common good is fairly shared between the rich and the poor and eliminate once and for all the wide gap that exists between the two. Currently the risk of poverty rate of 65 plus went up from 21 to 24.6 per cent.
Any similar manoeuvres carried out behind the backs of pensioners and low-wage earners are deplorable and should be avoided as much as possible as long as we still believe in the dignity of human beings and want to practise social justice.
Carmel Mallia is president of the Alliance of Pensioners Organisations.