Tax payers born after 1968 will have to make pension contributions for one extra year, for 41 years.

Finance Minister Edward Scicluna said the government was revaluating the balance between the number of years that taxpayers were expected to contribute and the number of years they would receive a pension.

As part of the pension reform, those who became parents or continued studying or specialising will have their missing National Insurance contributions credited.

The government will also be increasing pensions by one per cent for those in the private sector who opt to continue working. Prof. Scicluna said those who did not apply to start receiving their pensions after reaching retirment age would be given one per cent more for every year they went on working.

The wait will also be shorter to start receiving pensions.

Prof. Scicluna said these would now start being paid out from the first day pensioners stopped working or their spouses passed away.

This will benefit nearly 3,000 people every year.

Meanwhile, those aged over 75 will continue to receive an extra €300 every year.