Reduced income tax for part-time work and overtime
Workers in non-managerial positions whose income does not exceed â¬ 20,000 per year will be taxed at 15% on the first â¬ 10,000 they earn in overtime.
The tax rate for part-time workers will also be reduced from 15% to 10%, which is expected to affect some 23,000 workers.
Some 6 million euros are allocated to the measure and will benefit 30,000 people.
Tax refund checks will rise again to between â¬ 60 and â¬ 140, with the highest returns going to people in the lower income brackets. Some 250,000 people will benefit from this increase to the tune of 24 million euros.
Free childcare services will also be extended to evenings and weekends on shifts.
Following employers reporting an exodus of foreign workers and restaurants reporting a staffing crisis during the COVID-19 pandemic, Caruana’s social measures may well be designed to encourage more locals to take up manufacturing jobs and hotelier.
The threshold for activity allowances paid to parents with children under 23 has been raised for couples whose common income does not exceed â¬ 50,000, compared to â¬ 35,000 previously.
The widening of the benefit’s catchment area was one of many social measures announced by Finance Minister Clyde Caruana who presented the budget for 2022 on Monday.
The revised tariffs will allow some 7,000 families to benefit from the scheme, which has also been increased by â¬ 100, for a total of â¬ 200 per child each year.
For couples where only one parent is employed, the income threshold has been raised from â¬ 26,000 to â¬ 35,000, while the threshold for single parents has been raised from â¬ 23,000 to â¬ 35,000 per year.
New advantages for workers who work atypical hours
Caruana also announced the introduction of a new work-related benefit for workers who have non-standard hours, including people who work evenings and weekends in the accommodation, food service, hospitality and hospitality industries. administration, manufacturing, transportation, wholesale and retail.
Workers who earn up to â¬ 20,000 per year will receive â¬ 150 as long as they have worked at least six months in the calendar year.
Some 40,000 workers are eligible for the allowance, with 6 million euros allocated to the scheme.
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