Ritratt: Erika Lanzafame

Caritas Malta has released new data outlining the minimum income required for a family to maintain a ‘decent life’ in Malta. According to the latest figures, a family of four – comprising two adults and two children – needs at least €19,153 per year to cover basic living expenses.

The fourth edition of the Minimum Essential Budget for a Decent Living (MEBDL) for 2024 provides crucial insights into the financial requirements for various household types to maintain a basic standard of living.

According to the National Statistics Office’s 2023 Survey on Income and Living Conditions, 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 just €11,364.

Civil society groups have long advocated for a “national living income” that could exceed €30,000 annually for families of four – nearly triple the current minimum wage. Even conservative estimates place the living income for single adults 30% above the present minimum.

Despite these pressures, the government has resisted substantial minimum wage hikes, approving only 3% annual increases that continue lagging real costs.

As wealth concentrates and costs outpace incomes, the NSO data portrays an increasingly challenging climate. With poverty rates stagnating and the gap widening, the findings undercut Labour’s claims of uplifting the nation from hardship. Instead, they reveal those left behind who risk falling further through the cracks.

According to the Caritas study, a family of four—two adults and two children—requires a minimum of €19,153 annually to meet their basic needs. This figure is based on a ‘Basic Basket’ that includes eight essential categories: food, clothing, personal care, health, household goods and maintenance, education, culture and gifts, transport, and subsidised social housing.

The research also examined 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

Beyond the basics

The Caritas study introduces an ‘Augmented Basket’ that factors 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 per year
  • A single parent household’s requirements rise to €30,724.33
  • An elderly couple would need €26,556.29 annually

Food: The biggest expense

Notably, food expenses emerged as the most significant component of the budget, accounting for between 30% and 56% of total costs across all household types.

The MEBDL 2024 study, conducted between February and May 2024, builds upon previous editions while maintaining a similar methodology. It focuses on two primary objectives: reviewing and updating essential components for a decent living standard, and calculating minimum budgets for three low-income household types.

The study considers adults between 30 and 45 years old, with children of primary or secondary school age (9-15 years).

Accompanying the financial data are 31 policy recommendations spanning initiatives, education, and research. Caritas Malta emphasises that the MEBDL 2024 aims to provide a comprehensive picture of decent living standards for low-income families in Malta, with the ultimate goal of inspiring policies that promote social justice, economic equality, and sustainable, dignified living.

The report also includes a small study on one-time and recurring costs for families with babies or young children, though these are not incorporated into the Basic Basket calculations.

Sors: Newsbook.com.mt