A Labour government will help young people save and invest, giving them a stronger start to their lives.

This week, Prime Minister Robert Abela announced a major income tax proposal aimed specifically at young workers entering the labour market. The measure is designed to support individuals during their first years of employment by easing financial pressure and increasing disposable income.

Under the proposal, income tax will be exempt on the first €30,000 earned during the first three years of employment. Over this period, young workers could benefit from up to €12,300 in additional disposable income. This added flexibility will help them cope with the cost of living, invest in their future, and consider entrepreneurial opportunities at an early stage in their careers.

The initiative forms part of a wider package of measures focused on younger generations, with the aim of strengthening financial independence and supporting business creation. By putting more money into young people’s pockets, the proposal is also expected to boost consumer spending and stimulate further employment opportunities.

The Labour government, led by Prime Minister Robert Abela, continues to introduce targeted and realistic economic measures that support both Malta’s and Gozo’s growth. These proposals are grounded in what can be achieved responsibly, in clear contrast to the Nationalist Party proposals that are disjointed and financially unrealistic.

Labour’s strong economic credentials are underlined by successive governments that have successfully steered Malta’s economy through significant geopolitical and geoeconomic challenges, delivering stability and consistent growth.

Together with other upcoming initiatives, this measure will create new opportunities for Maltese and Gozitan youths to improve their wellbeing and standard of living. Labour has once again set a positive, forward-looking agenda, backed by a costed and realistic economic model for the years ahead.