Six-year deal in Malta

Unions representing 30,000 public sector workers on Malta have reached agreement with the government on a long-term pay deal, which increases pay by around 2.5% each year.

The deal, which has been under negotiation for two years, runs for six years from the start of 2011 until the end of 2016. The previous agreement expired at the end of 2010. There is only a modest €61 lump sum payment for all staff for 2011, but in each year thereafter pay increases by approximately 2.5%. At the bottom of the scale, this means that the minimum annual salary goes up from €8,417 in 2011 to €9,652 in 2016, a 14.7% increase over six years. The increases include any cost of living adjustments that might otherwise be paid. Inflation in Malta is currently 2.9% (September).

The agreement also makes changes to flexiworking, working at home and holiday arrangements, which the government says will make it easier to combine work and family responsibilities. Prime minister Lawrence Gonzi said the agreement “will give stability to the country for the next six years”.