Government expenditure on social security benefits rose by 9.9% to €390.3 million during the first quarter of 2026, continuing the upward trend in welfare and pension spending in Malta. According to the latest figures published by the National Statistics Office, the increase was driven by higher expenditure on both contributory and non-contributory benefits, with pension payments once again accounting for the largest share of the rise.
The NSO data shows that spending on contributory benefits increased significantly, largely due to higher outlays on retirement pensions, particularly the Two-Thirds Pension scheme, which remains the largest category of beneficiaries within the social security system. Expenditure on widowhood pensions and contributory bonuses also registered increases during the January–March period.
Non-contributory benefits also continued to rise, reflecting higher spending on children’s allowances, disability assistance and additional cost-of-living support measures introduced in recent years. The figures indicate that welfare expansion and Malta’s ageing population are continuing to place growing pressure on recurrent government expenditure.
The latest quarterly increase follows record social security spending throughout 2025, when government expenditure on pensions and social benefits reached €1.62 billion, the highest level ever recorded. At the time, retirement pensions alone accounted for the majority of the annual increase in spending.
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