The National Statistics Office Malta (NSO) has published that in 2024, 92,690 people in the Maltese islands are living in households with a national equivalised income below the at-risk-of-poverty (ARP) line. These findings have found that the ARP rate of the Maltese population lies at 16.8% – an increase of 0.2% from the previous year.
According to the most recent European Statistics on Income and Living Conditions survey (EU-SILC 2024), just under one fifth of all people (19.7%) fall below the threshold calculating the ARP or social exclusion (AROPE) rate. This equates to an estimated 108,406 people. This is 0.1% better than the estimate calculated for 2023.
The ARP rate among persons below 18 years of age was calculated at 24.1%, meanwhile females registered a higher ARP rate than their male counterparts, at 18.3% and 15.6% respectively. While the ARP rate for males remained stable (down just 0.1%), the ARP rates for females and children increased by 0.7% and 2.1% each from the previous year.
The ARP rate for 65+-year-olds increased by 0.7% to 29.7%, meaning that around three in every 10 of these seniors are living in or are at risk of living in poverty.
Significant regional differences were observed by NSO Malta when geographically mapping ARP rates across Malta and Gozo. The South Eastern district registered the lowest ARP rate at just 9.5%. In contrast, the Northern district registered an ARP rate of 23%.
In between them, Gozo had the next highest ARP rate, with 20.4%. The three remaining geographical districts – the Northern Harbour, the Western district and the Southern Harbour – recorded respective ARP rates of 16%, 16.7% and 17.6%.
When categorised by AROPE rates, to include social exclusion concerns, the South Eastern district recorded the lowest percentage (11.7%), followed by the Western district (18.9%), the Northern Harbour district (19.4%), Gozo and Comino (21.7%), the Southern Harbour district (23.4%) and the Northern district (24.1%).
NSO Malta calculated this by considering the total incomes of private households across Malta and Gozo by its residents. The entity defines “national equivalised income”, which may also be referred to as the “equivalised disposable income of a household” as a household’s total disposable income, which also takes into account the total income generated and the size and composition of that household.
In layman’s terms, this is calculated by taking the household’s total disposable income (after taxes) and dividing it by a value determined by the number of people living together and their age brackets. With this national equivalised income in mind, the poverty line was marked at a sum of €12,258.
It was also found that the rate for Material and Social Deprivation (MSD) stands at 9%, while the Severe Material and Social Deprivation (SMSD) rate is 4%; these are the lowest rates over the past five years. This is calculated by weighing whether a household can afford to purchase a basket of 13 standard household items.
In addition, 28.8% of the surveyed population noted that their household cannot afford to pay for a one-week annual holiday away from home.
Full details of this study can be found on the NSO Malta’s website.
Government statement: Poverty and social exclusion rates continue to drop
In the wake of these announced findings, the government has stated that the rates of people living in poverty and social exclusion, as well as for material and social deprivation, continue to decrease each year.
The government observed that the rate of people at risk of poverty and social exclusion fell to 19.7% in 2024, “the lowest level ever recorded since these statistics began being collected”, from 19.8% in 2023. It was noted that, impressively, this rate has decreased from the 24.6% recorded in 2013.
Regarding severe material and social deprivation, the government noted that in three years, since the pandemic, over 5,000 people were assisted out of such dire financial straits; in 2021, this proportion reached 5.4%, meaning a 1.4% reduction since then.
It also said that in 2013, those in severe material deprivation amounted to 10.2% (which is two-and-a-half times more than it is now) and that those in non-severe material deprivation amounted to 19.9%, in contrast to the 4% recorded today.
The government added that Malta is fortunately following an opposite trend to our European counterparts. Germany, for example, has witnessed its SMSD rates increase from 4.3% to 6.2% over just the past three years.
It also observed that the average family income, after taxes, increased to €38,236 (up by €961 from 2023). During the pandemic, this average disposable income was totalled at €28,505, meaning that in five years, this has increased by a third (34%) or by €9,731.
“The poverty line has increased by almost €5,000 in income but the risk of poverty has remained stable and the risk of poverty and social exclusion has decreased,” the government stated, claiming that income gains are reaching all levels of society.
The government attributed these improvements to its “massive investments” in social initiatives.
