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Historic collective agreement signed for public sector employees in Malta

33,000 employees benefit from significant salary increases and improved working
conditions

On Friday morning, Malta celebrated a historic milestone at the Auberge de Castille
with the signing of a ground-breaking collective agreement for public sector
employees. The agreement, which will benefit 33,000 workers, promises significant
pay increases and improved working conditions. The agreement, which was reached
in co-operation with 10 trade unions, including the General Workers’ Union,
complements existing sectoral agreements that are tailored to specific professions in
the public sector.

The agreement will run for six years, from 1 January 2025 to 31 December 2030,
and includes investments of 1.27 billion euros. The funds will be used for salary
increases, the introduction of new allowances and the top-up of existing allowances.
Employees below the maximum rate of their respective grade will also receive
annual supplements. Under this agreement, the lowest salary in the public sector will
now be €1,200 above the national minimum wage, a significant increase on the
previous margin of €500.

In his speech, Prime Minister Robert Abela described the agreement as the best
ever for the civil service. He emphasised that such a robust investment was possible
due to Malta’s resilient economy, which has exceeded expectations with a growth
rate of 7. “This demonstrates our ability to outperform forecasts and emphasises the
strength of our economy,” said Abela.

The Prime Minister emphasised that the public service remains a key economic and
social driver for the government’s success, especially in the implementation of
measures such as the budget. He also outlined Malta’s next major goal: Vision Malta
2050, a roadmap that aims to reflect the aspirations of a united population by setting
interim targets for 2035 and driving improvements in key sectors by 2050.

Mr Tony Sultana, Head of the Public Service, clarified that this collective agreement
will not replace the existing sectoral agreements but will complement them. He
announced the introduction of new benefits, including a seniority bonus, as well as
unprecedented increases in salaries, allowances and overtime rates.

Sultana added that the agreement goes beyond financial improvements by focussing
on work-life balance, mental health and sustainable initiatives. He described this as a
historic moment for public service workers, driving modernisation and improving the
quality of services for the benefit of the nation.

The signing ceremony was attended by Prime Minister Abela, Sultana, Permanent
Secretary in the Prime Minister’s Office Joyce Cassar and leaders of the 10 unions
involved.

This agreement is an important step towards ensuring better conditions for public
sector workers while driving further progress and innovation in Malta’s public sector.