Pensions are being raised for the first time in 20 years as part of a gradual process that will see the minimum pension reach 60 per cent of the average wage by 2027 Finance Minister Edward Scicluna announced in the Budget speech this evening.

12,000 pensioners with an income of under €140 per week will get an increase of between €4.15 and €8.92 per week.

In this way, the lowest contributory pension and bonus for those who had made the necessary contributions would be €7,280 per year, or €140 per week.

The €300 per year benefit for those over 75 will be retained.

Prof. Scicluna also announced that as part of measures for people to stay in employment, the number of years of social security contributions needed for people to be entitled to a pension is being increased to 41 years from 40 years for those born after 1968.

Under a system still under discussion, workers will be able, in agreement with their employers, to continue to work for four years past their retirement age and continue to pay in social security contributions. They will then get higher pensions.