The Ministry for Social Policy has announced that the first of two additional cost-of-living adjustment (COLA) payments for 2025 will be paid over this coming weekend.
The Minister for Social Policy, Michael Falzon, stated in a press conference on Wednesday morning that this week, over 97,000 families will be paid the first of two COLA payments for the year 2025. He said that the number of beneficiary families has increased after the benefit was expanded by the government.
This first additional COLA payment will cost the government a total of nearly €24 million.
“We are continuing to do this because we truly believe in people, and it is our obligation to continue to incentivize and help in the best possible way,” Minister Falzon said.
Permanent Secretary Mark Musu said that the COLA mechanism determines the payment allocated by considering two factors: the family’s/individual’s income compared to 60% of the Equivalised National Median, and the number of persons in the family.
The family’s/individual’s income being considered in this mechanism is the net income registered by the Tax Department for the year 2023, following the deduction of social security and tax contributions.
Musu described that the lower the income, the higher the COLA benefit that will be paid. Similarly, the same applies for family size, i.e., the larger the family, the greater the benefit.
The benefit can rise to a maximum of €1,500.
Together with the subsidies on energy and cereal prices, this benefit is intended to continue providing support to thousands of families amidst the pertinent challenges of inflation.