Politics & Policies

Malta / Minimum wage earners will pay tax

Prime Minister Lawrence Gonzi has admitted that single people earning minimum wage will be paying tax on their gross incomes, due to the increase from the cost of living adjustment and the government bonus that will push the minimum wage into the taxable bracket.

In an interview on Radju Malta’s Ghandi Xi Nghid, Gonzi confirmed claims raised by Labour – which he denied when questioned by the Labour media on Budget night last Wednesday – that a single earner on the new minimum wage of €8,433.88, as bolstered by COLA, will be pushed into the 15% tax band because of the statutory bonus of €512.

The admission confirms what observers feel is an oversight by Tonio Fenech, after both the Nationalists and Labour entered into a political feud over claims that Joseph Muscat would ‘freeze’ minimum wage.

Choosen excerpts by Job Market Monitor from

 'Minimum wage earners will pay tax, Gonzi says - maltatoday_com_mt' - www_maltatoday_com_mt_en_newsdetails_news_budget2013_Minimum-wage-earners-will-pay-tax-Gonzi-says-20121130

via Minimum wage earners will pay tax, Gonzi says – maltatoday.com.mt.


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