COLA | All about Cost of Living Allowance in Malta
Updated at Sep 25, 2024 | by Admin
Cost of living allowance (COLA) is a government bonus that is added to every employee's wage in Malta. The amount of COLA is changed every year. For 2024, COLA is €12.81 per week for full time employees and €0.32 per hour for part time employees. It is calculated through the Retail Price Index (RPI). This bonus is automatically added to the salaries and is not taxable. The goal is to help low earners maintain a good standard of living.
Who is Eligible for COLA
In Malta, people who are eligible for COLA include:
- All employees whether full time or part time from both the public and private sectors.
- People who are retired and are receiving government pensions.
- People who are receiving any kind of social benefit from the government.
- Trainees, not in all cases but in some cases trainees are also eligible for COLA.
When is COLA paid
COLA bonus is added to the monthly salary of the eligible employees and is paid every month. The Government of Malta specifies the amount of COLA for every year in the budget. Then the employers have to pay this additional bonus. The workers can see a raise in their salaries.
COLA History in Malta
| Effective From | Full Time Employees | Part Time Employees |
|---|---|---|
| 1st January 2024 | € 12.81 | € 0.32 |
| 1st January 2023 | € 9.90 | € 0.25 |
| 1st January 2022 | € 1.75 | € 0.04 |
| 1st January 2021 | € 1.75 | € 0.04 |
| 1st January 2020 | € 3.49 | € 0.09 |
| 1st January 2019 | € 2.33 | € 0.06 |
| 1st January 2018 | € 1.75 | € 0.04 |
| 1st January 2017 | € 1.75 | € 0.04 |
| 1st January 2016 | € 1.75 | € 0.04 |
| 1st January 2015 | € 0.58 | € 0.01 |
| 1st January 2014 | € 3.49 | € 0.09 |
| 1st January 2013 | € 4.08 | € 0.10 |
| 1st January 2012 | € 4.66 | € 0.12 |
| 1st January 2011 | € 1.16 | € 0.03 |
| 1st January 2010 | € 5.82 | € 0.15 |
| 1st January 2009 | € 4.08 | € 0.10 |
| 1st January 2008 | € 3.49 | € 0.09 |
| 1st January 2007 | € 4.08 | |
| 1st January 2006 | € 5.24 | |
| 1st January 2005 | € 4.08 | |
| 1st January 2004 | € 1.75 | |
| 1st January 2003 | € 4.08 | |
| 1st January 2002 | € 3.49 | |
| 1st January 2001 | € 3.49 | |
| 1st January 2000 | € 2.33 | |
| 1st January 1999 | € 4.08 | |
| 1st January 1998 | € 3.49 | |
| 1st January 1997 | € 3.49 | |
| 1st April 1997 | € 0.59 | |
| 1st January 1996 | € 4.66 | |
| 1st January 1995 | € 5.24 | |
| 1st January 1994 | € 3.49 | |
| 1st January 1993 | € 2.33 | |
| 1st January 1992 | € 3.49 | |
| 1st January 1991 | € 2.91 | |
| 1st January 1990 | € 6.99 |
How COLA is Calculated
Cost of Living Allowance (COLA) is calculated through Retail Price Index (RPI). Retail Price Index is an indicator that helps measure inflation. RPI identifies the monthly change in prices of goods and services purchased by private households.
To calculate COLA for the current year, multiply the last year's COLA with the decimal value of RPI. Then add the last year's COLA to the result of this multiplication, the value you get will be the COLA for the current year.
For Example
- We are calculating COLA for 2030.
- Retail Price Index (RPI) increase value is 30%.
- Previous year COLA value is €9.90.
RPI is given in percentages, first of all, you need to convert it to a decimal value which is equal to 0.30 in this case.
€9.90 * 0.30 = €2.97
This €2.97 is the increase in COLA because of RPI.
To find out the COLA for 2030, we need to add this value to the previous year's COLA.
€9.90 + €2.97 = €12.87
The COLA for 2030 will be €12.87.