Reference is being made to an article by Carmel Mallia, President of the Alliance of Pensioners Organisations, entitled ‘Pensioners and the minimum wage’ (February 1).
Regrettably, Mallia’s article contains several inaccuracies, despite the fact that in a meeting with him (and fellow colleagues of the Alliance) held on January 12 at the Ministry for the Family, Children’s Rights and Social Solidarity, he was given all the required explanations.
It is not true that a document issued by the Department of Social Security shows that the national minimum wage will be increasing by €1.75 this year. This department, which incidentally is not administratively responsible for issues related to COLA and the minimum wage, is fully aware that the minimum wage in 2018 has increased by €2.75 per week and is now €172.51 per week for persons aged 18 years and over. This is as a result of the COLA increase of €1.75 per week and an additional mandatory €1 increase per week. Another mandatory €1 increase together with COLA will be paid again in 2019. It is important to specify that the guarantee of a mandatory €2.75 per week in 2018 and COLA + €1 per week in 2019 is for all employees, not only those on a minimum wage.
The weekly increases in the minimum wage and additional increments for persons on the minimum wage have the aim to provide a much needed salary increase to these persons
In addition to the above, a person who is on the minimum wage, immediately after termination of his first year in employment with the same employer will be entitled to an additional €3 weekly increase, and another €3 weekly increase immediately after termination of his second year in employment. This total of €6 weekly increase per week over two years and thereafter will be in the salary and not paid as an allowance or fringe benefit as Mallia implied.
The above weekly increases in the minimum wage and additional increments for persons on the minimum wage, which have the aim to provide a much needed salary increase to these persons, will have no affect on the pension eventually paid to persons on a minimum wage, even if their pensionable income would result equivalent to the minimum wage.
This is because the national minimum pension was substantially increased in 2016 (apart from the subsequent COLA increase in 2017 and the €3.75 weekly increase in 2018) meaning that a person on the minimum pension will, on retirement, get a much higher pension than two-thirds of the minimum wage.
The ‘at-risk-of-poverty or social exclusion’ rate for persons aged 65+ quoted by Mallia in his article refers to SILC 2016 based on reference data of 2015. So this is not yet reflecting all the increases pensioners have experienced from 2016 to date.
All the above was clearly explained to Mallia and his colleagues in the above-mentioned meeting.
It is thus very perplexing that he elected to pen an article based on false premises and factual inaccuracies.
Claudia Cuschieri is spokesperson, Ministry for the Family, Children’s Rights and Social Solidarity.