Budget 2026 Cost of Living Allowance Expected to be Less than €5 a Week

The Cost of Living Allowance (COLA) for 2026 is anticipated to be less than €5 a week, according to expectations. COLA is a government-mandated increase in wages aimed at helping employees cope with rising living costs, and its adjustment is typically announced during the annual government budget. In Malta, COLA is calculated based on the Retail Price Index (RPI), which measures the average price changes of a basket of goods and services over time. This allowance is paid to all employees, including part-time workers, and is also applicable to retirees receiving government pensions and social benefits. Given the historical context, COLA rates have fluctuated over the years in response to changes in the economy and cost of living, with recent rates being €12.81 per week for full-time employees and €0.32 per hour for part-time employees in 2025.