Malta could save millions of euros with miscarriage leave, says economist

Introducing miscarriage leave is expected to reduce productivity losses, which currently cost the economy around €3.7 million annually, according to an economist’s report.

Economist Jonathan Spiteri explained that based on an estimated 300 reported miscarriages per year, the productivity loss currently stands at €3.7 million when factoring in the loss of productivity of the birthing parent alone.

This could increase to a productivity loss of €12.3 million if calculated on 1,000 miscarriages annually, which is believed to be the real figure that factors in the unreported cases of pregnancy loss.

Spiteri presented the findings during a public consultation meeting on the proposed miscarriage leave policy. The meeting followed an earlier conference that brought together experts to explore the topic in depth.

Spiteri was commissioned by the Social Dialogue Parliamentary Secretariat to evaluate the impact of miscarriage leave on employee productivity to inform the consultation process.

Parliamentary Secretary for Social Dialogue Andy Ellul, centre, and economist Jonathan Spiteri, right.

Currently, around 300 miscarriages are reported annually in Malta, although the actual number is believed to be closer to 1,000 due to underreporting. Using a model adopted in the UK, Spiteri estimated that the productivity loss from these 300 cases amounts to €3.7 million.

He highlighted the concept of “presenteeism” – when employees attend work but are not fully ready to be there, so they are not fully productive.

International studies show that after a month, birthing parents function at about 25% of their usual productivity, improving to 66% after six months.

Spiteri analysed the productivity impact of providing one, two, or four weeks of miscarriage leave, considering optimistic, realistic, and conservative recovery scenarios.

How miscarriage leave, based on 300 miscarriages per year, would impact productivity if granted for one, two or four weeks in three scenarios. The black line is the current estimate without miscarriage leave. Source: Presentation by Jonathan Spiteri

Under the realistic scenarios, productivity loss would face reductions ranging from 1% to 8% – which, although modest, consistently show improved productivity outcomes.

He noted limitations in the research, such as the exclusion of potential job losses, unpaid leave, broader family impacts, long-term emotional effects, and costs to employers to replace the employee especially in cases of small companies.

Still, Spiteri emphasised that miscarriage leave would contribute positively by supporting physical and emotional recovery.

Parliamentary Secretary for Social Dialogue Andy Ellul said the results provided reassurance for both affected individuals and employers. He confirmed that there was widespread agreement on introducing miscarriage leave and that the government would cover the costs.

The next steps involve determining key details, including the duration of the leave, whether it should apply to both partners, payment rates, confidentiality measures, career progression safeguards, and safeguards against abuse.

Two rapporteurs also presented findings from the ongoing consultation process.

Josianne Cutajar shared insights from the initial conference, noting that Malta sees around 4,000 pregnancies annually, with roughly 20% ending in miscarriage.

Although hospital records show about 320 reported miscarriages, many go unreported. Miscarriage, defined as a pregnancy loss within the first 23 weeks, differs from stillbirth, which occurs afterward. Common causes include biochemical, hormonal, or genetic issues.

While physical recovery may involve one or two days in hospital, emotional and psychological healing continues at home, often without adequate support.

Once at home, many couples face the reality that their dream of starting a family has been shattered, triggering a grieving process.

In Malta, individuals usually take sick leave. Experts caution against overly long leave, which may increase isolation and hinder reintegration into work. The policy must balance emotional needs with economic realities, particularly given that many Maltese businesses are small and depend heavily on their workforce.

Miscarriage leave should be part of a broader support package that includes access to counselling services, she said.

The next steps involve determining key details, including the duration of the leave, whether it should apply to both partners, payment rates, confidentiality measures, career progression safeguards, and safeguards against abuse

Amy-Jo Mifsud, a midwife, provided a technical overview of miscarriage and its wider effects on families and workplaces.

She noted that miscarriage is a form of bereavement that remains underdiscussed in professional settings, resulting in a lack of relevant policies.

There is an overlap between sick leave and bereavement leave, which can sometimes lead to misuse. However, the unique physical and psychological dimensions of miscarriage call for distinct protections.

She also spoke about the need for safeguards against abuse, such as formal documentation and penalties for fraud.

The issue of whether partners should receive the same leave entitlements also needed to be addressed. Concerns were raised that failing to offer equal leave could make women less employable if employers perceive them as being more absent from work due to miscarriage leave or maternity leave.