Making work pay for low income child-carers in Malta

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Since 1 January 2015, Malta is implementing an In-work Benefit entitlement scheme whose main objective is to encourage persons with low incomes to stay in employment rather than opt for benefits. It is also meant to attract persons currently on benefit but working in the black economy to regularise themselves. It is an interesting initiative that introduces elements of the concept of a “living wage” without creating problems for employers, as would be the case if the statutory minimum wage were to be increased.

Author: Mario Vassallo