Contributory public welfare programmes in Malta

Abstract

Social security in Malta comprises both contributory and non-contributory schemes: the former being regulated by the National Insurance Act 1956, and the latter, by the Old Age Pension Act 1948 and the National Assistance Act 1956. This study assesses the performance of the contributory public welfare programmes during the period 1974-1985. Major changes have taken place over the period, such as the introduction of earnings-related national insurance (NI) contributions for both employed and self-employed persons, and the restructuring of the retirement pension, invalidity pension and the widow's pension; these changes and innovations need evaluation particularly in the light of statements made by legislators about the 'widening of the Welfare Gap'. Chapter 1 describes, in brief, the existing NI benefits and contributions, highlighting the amendments to the scheme and the introduction of new ones. Chapter 2 examines the changes in the benefit and contribution rates and their impact on the former NI Fund; Chapter 3 assesses the viability of the revenue flow from NI contributions to meet the cost of NI benefit payments while Chapter 4 examines the expected economic growth, demographic changes and welfare expenditure during the three years covered by the latest Development