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Maltas Cost of Living: Caritas Sets Minimum Income Threshold for Families at 19,153 Euro Annually
August 17 2024 14:10 by PCLMedia
Caritas Malta has published new data highlighting the minimum income needed for families in Malta to maintain a "decent life." According to the latest figures, a family of four—comprising two adults and two children—requires at least €19,153 annually to cover basic living expenses.
The fourth edition of the Minimum Essential Budget for a Decent Living (MEBDL) for 2024 offers crucial insights into the financial needs of various household types to sustain a basic standard of living.
Data from the National Statistics Office’s 2023 Survey on Income and Living Conditions shows that over 105,000 people in Malta—nearly one in five—were at risk of poverty or social exclusion last year. This includes 88,462 individuals, or 16.6% of the population, living below the at-risk-of-poverty threshold of €11,364.
Civil society groups have long pushed for a “national living income,” which could exceed €30,000 annually for families of four—nearly three times the current minimum wage. Even conservative estimates suggest that a living income for single adults would be 30% higher than the current minimum wage.
Despite growing financial pressures, the government has been reluctant to implement substantial minimum wage increases, approving only 3% annual hikes that continue to lag behind real living costs.
As wealth becomes more concentrated and costs outpace incomes, the NSO data paints a picture of an increasingly challenging economic landscape. Poverty rates remain stagnant, and the gap between income and living costs continues to widen, contradicting claims of economic uplift. Instead, these figures reveal the growing number of people at risk of falling further into poverty.
Key Findings from the Caritas Study
According to the Caritas study, a family of four requires a minimum of €19,153 annually to meet their basic needs. This figure is based on a "Basic Basket" that includes essential categories such as food, clothing, personal care, health, household goods and maintenance, education, culture and gifts, transport, and subsidised social housing.
The study also examines two other household types:
- A single parent with two dependent children needs €17,012.83 per year.
- A couple aged 65 and over requires €14,731.79 annually.
Since 2014, the minimum wage in Malta has increased by only 29%.
‘Augmented Basket’ Reflects Additional Lifestyle Costs
Caritas introduced an "Augmented Basket" in its study, factoring in additional lifestyle elements such as dining out once a month, car ownership, unsubsidised rental accommodation, occasional food delivery, and pet care. Under this expanded criteria:
- A family of four would need €33,176.50 annually.
- A single parent household’s requirements rise to €30,724.33.
- An elderly couple would need €26,556.29 annually.
Food: The Largest Expense
Food expenses emerged as the most significant cost, accounting for 30% to 56% of total expenses across all household types.
Study Focus and Methodology
The MEBDL 2024 study, conducted between February and May 2024, builds on previous editions and maintains a similar methodology. It focuses on two main objectives: reviewing and updating the essential components needed for a decent standard of living and calculating minimum budgets for three low-income household types. The study considers adults aged 30 to 45, with children of primary or secondary school age (9-15 years).
Policy Recommendations and Broader Implications
The report includes 31 policy recommendations addressing initiatives, education, and research, aiming to provide a comprehensive view of decent living standards for low-income families in Malta. Caritas Malta hopes the findings will inspire policies that promote social justice, economic equality, and sustainable, dignified living.
Additionally, the report contains a small study on one-time and recurring costs for families with babies or young children, although these costs are not included in the Basic Basket calculations.
With over 60,000 full-time workers earning minimum wage in Malta, the findings underscore the urgent need for policy interventions to support vulnerable households and address the widening gap between incomes and living costs.
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