One of the main pillars of Malta’s social security system is the Social Security Contribution Scheme.
The social security contribution scheme does not provide you only with a pension upon retirement. By paying your social security contributions you are also entitled, amongst others, to:
An Invalidity Pension is granted to persons certified — by a Medical Panel appointed by law — as being incapable for suitable fulltime or regular part-time employment because of health issues.
Prior certification, a person needs to submit 26 weeks of medical certificates; Upon certification, prior any invalidity payment, he or she needs to terminate employment. Anybody in receipt of the invalidity pension, can terminate pension if he / she feels fit to resume work.
The invalidity pension is granted for a minimum of one year and for a maximum of three years. If an invalidity claim is rejected, an appeal can be lodged and the decision will then be issued by the Umpire.
Since invalidity pension is awarded to persons below pension age, upon reaching retirement age, their social security retirement pension will be assessed whereby invalidity pension will be stopped and invalidity credited contributions will be credited for the Invalidity period.
A Widow’s Pension will be received by the spouse until s/he reaches the retirement age in the event that husband / wife pass away prior their retirement age.
If the spouse’s death is caused by an accident at the place of work, the widow/er is awarded at least the full flat rate of WP, even if the late spouse’s contribution average is deficient – meaning having had missing contributions.
All widows receive their widow’s pension irrespective of children in marriage and employment.
For separated couples, a legal separation agreement will be requested and the amount of pension to be issued to the survivor/s will depend on the contract signed.
On reaching retirement age, the one in receipt of a widow’s pension will either receive the retirement pension (if eligible) or the surviving retirement pension, depending which of the two pensions is the most beneficial (highest). For those whose retirement pension claim will be rejected, they would continue to receive the widow’s pension.
Whilst a widow’s pension is received in case of death prior retirement age, a Survivor’s pension is issued to the surviving spouse in the event that demise takes place after retirement age.
If the surviving spouse is already in receipt of a pension in his / her own right, the survivor’s pension would still be calculated but would receive either the retirement pension or the survivor pension, depending which of the two pensions is the highest.
With effect from 1st January 2016 surviving spouses in receipt of the widows’ pension, who are eligible to a retirement pension in their own name, or vice-versa, are not entitled to the 5/6th of two thirds of the late spouse pensionable income but are entitled the full rate of retirement pension of late spouse (6/6th). The awarded pension however would be the one most beneficial, in that, the surviving spouse would be entitled to either to his/her own pension or the successor pension, depending which of the two is the higher.
In the event that one is rendered unemployed, one is entitled to up to six months unemployment benefits in proportion to social security contributions one would have paid.
Up to 1 ½ year of sickness benefit in proportion to social security contributions you paid, based on Medical Panel decisions.
Up to 1 year as injury benefit based on Medical Panel Decisions
The government healthcare service, where healthcare is free at the point of delivery…Malta has a strong general practitioner-delivered primary care base and the public hospitals provide secondary and tertiary care. (Source : https://webcache.googleusercontent.com/search?q=cache:IcxfbNW1K8sJ:https://en.wikipedia.org/wiki/Healthcare_in_Malta+&cd=3&hl=en&ct=clnk&gl=mt)
The social security contribution that we pay does not go to an ‘individual pension account’. The social security contribution that we pay goes to the National Consolidation Fund. This allows the Consolidated Fund to provide for inter-generational solidarity by pooling all contributions received from young, middle aged and elderly persons in employment so that protection benefits referred to above, can be provided to us and our families.
