Malta Chamber of SMEs and EWA starting a new pilot project to assist outlets in efficient use of energy and water
26 July 2021
The Malta Chamber of SMEs will assist a number of retail outlets in the food...
A fairer capping for self-employed and business-owners
GRTU believes that a more realistic approach specifically addressing the self-employed and business owners is required. Our self-employed and business owners have not only contributed heftily in financial terms over the years, but are also the main drivers of economic development and job creation. Their contribution must be acknowledged and translated into the pension they have contributed for and deserve. The current system is unjust especially when considering that other sectors of society, such as former Members of Parliament, are treated differently with no maximum capping on their pension. This measure should not only ensure a fairer pension to this sector of society but also disincentivise under-claiming of income, upon which an individual is to be taxed.
A system which is sensitive to self-employed’s realities
A thorough reform needs to take into consideration the context of self-employed which, in GRTU’s opinion, requires specific measures to reflect their reality. On these lines GRTU proposes allowing self-employed persons to retire early for cases where they are close to their retirement age and their business is no longer feasible. Another measure would be of exempting self-employed persons from having to stop working for one year when the opt-outoption is taken.
Worthwhile incentives are necessary to push forward diversification efforts
Incentives and measures being put forward need to be financially viable if take-up is to be registered once implementation is transposed from paper into practice. Some of the incentives proposed in the reform may seem welcoming on paper but do not make financial sense for end-users. Recommendation 13 suggests opting to renounce pensions for a minor permanent increase. In practice however it would take too long to recuperate the renounced pension itself.
An effective measure that GRTU believes would really incentivise pensioners to remain active in the labour market is the reduction or removal of taxation on pensions for working pensioners, or removal of NI contributions.
In itself however, the drive towards highering the working age, whether through incentives or imposed, also comes with its concerns. These may include sector-sensitivity matters based on issues such as the extent of physical activity or health hazards this may pose on ageing persons; as well as issues related to productivity and career opportunities.
A stronger overall reform is necessary to sustain first pillar pensions whilst incentivising diversification.
GRTU believes that a long-term approach is needed to start addressing seriously the sustainability of the pensions system in the context of its social importance along with its economic viability. The change must be gradual however change to the status quo is necessary. Postponing will only make matters worse and make change more difficult and costly.
The Malta Chamber of SMEs represents over 7,000 members from over 90 different sectors which in their majority are either small or medium sized companies, and such issues like the one we're experiencing right now, it's important to be united. Malta Chamber of SMEs offers a number of different services tailored to its members' individual requirements' and necessities. These range from general services offered to all members to more individual & bespoke services catered for specific requirements.
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