A number of lifecycle events will take place in your life – some planned, others not. During the course of your life you may make decisions that will require you to stop working or events will occur that will not allow you to work.
You, together with the respective 10% share of your employer and the government if you are an employee, or the 7.5% government share if you are self-employed, can only pay your social security contribution if you are working and earning a gross wage or salary. Depending on when you are born you have to pay the following number of social security contributions if you are to qualify for the full pension regarding contributions paid:
If you have gaps in your contributory history then you will receive a lower pension on retirement than if you had paid your full amount of social security contributions.
The social security contribution scheme is an ‘insurance’ package that provides for inter-generational solidarity. The scheme is designed to provide you with protection in the event that unplanned gaps occur or gaps arise from decisions you make that ultimately present economic and social value to Malta.
The Social Security Act, therefore, provides for the crediting of contributions to your pension contributory pension for certain specific circumstances.
What does Crediting Mean
Crediting means that for certain specific circumstances where you are not working the government will pay your contribution as if you were still working.
What are the Specific Circumstances under which the Government will Credit Contributions to your Social Security Pension
There are various specific circumstances under which the Government credits contributions to your Social Security contribution record. These are shown in the Table below: