Copyright maltatoday
The government will cover part of your wage increase if you have been working at the same company for more than four years. Announced during Budget 2026, the government will cover 65% of the wage increase given to employees who have been working in a company for over four years, to a maximum of €780. For companies in Gozo, the government will cover 80% of the increase, or €960 maximum. The total financial help through this mechanism, which will be administered under MicroInvest, will increase from €45,000 a year to €65,000 for Maltese companies and €80,000 for Gozo companies. During his speech, Finance Minister Clyde Caruana announced changes to Malta Enterprise’s MicroInvest scheme, which helps businesses expand and develop their operations. He said the scheme will be widened to include investments in digital solutions, while the tax credit will increase to €65,000, or a maximum 65% of eligible expenses. Gozo enterprises will keep their 20% additional bonus under the scheme, while the total sum of aid for specific categories will increase to a maximum of €85,000. Companies looking to invest to improve value added or general productivity, or even to start a new business, will be eligible for a tax credit of up to 60% of the investment value, spread over four years. The investment would have to take place within the next two years. Companies will also be able to apply for a tax benefit on AI investments. This will take the form of a 175% tax benefit on research and innovation investments, with an accelerated tax write-off across two years. To boost AI knowledge, the government will also offer an ‘AI for all’ scheme, by covering the costs of attending an accredited course in artificial intelligence. As part of the scheme, the government will also pay for a premium subscription to AI software such as Gemini or ChatGPT Plus.
