COLA

Cost Of Living Allowance in Malta

Cost of living wage adjustment for all employees in Malta [1990 – 2024]

The Cost of Living Allowance (COLA) has a long history in Malta. The allowance was introduced to provide additional income to workers to help them cope with rising living costs, particularly in relation to the cost of essential goods and services.

COLA a legal requirement and is paid to all employees by their employer, with the aim of ensuring that workers were able to maintain their standard of living despite rising costs.

The COLA system in Malta is based on the Retail Price Index (RPI), which is a measure of the average price changes of a basket of goods and services over time. The RPI is calculated and published by the National Statistics Office of Malta on a monthly basis, and is used to adjust the COLA rate to reflect changes in the cost of living.

Over the years, the COLA rate in Malta has fluctuated in response to changes in the economy and the cost of living. The fluctuations can be observed on this page.

In recent years, there has been some debate in Malta over the effectiveness of the COLA system and its ability to keep pace with rising living costs. Some critics have argued that the system is too inflexible and does not take into account the specific needs and circumstances of different workers and industries.

Despite these challenges, COLA remains part of the social and economic landscape in Malta, providing additional support to workers in the face of rising costs.