‘Largest ever’ free childcare agreement signed
The largest-ever free childcare agreement was signed on Tuesday, covering a four-year period and exceeding a quarter of a billion euros, with Prime Minister Robert Abela saying the agreement builds on previous ones while increasing investment every year throughout its duration.
In total, the free childcare agreement amounts to €276.7 million.
Abela said the agreement confirms that a strong economy remains key to the prosperity the government aims to continue creating for Maltese and Gozitan families, and that economic growth is being translated into concrete measures that reduce burdens and improve quality of life.
He stressed that, for the government, free childcare is not an expense but an investment in families, adding that the government supports different family choices and has introduced new rights to improve work-life balance.
In Malta, 210 hours of free childcare per month are allocated per child, averaging 50 hours per week. A Central Bank study shows that the free childcare scheme led to 6,200 more women entering the workforce, resulting in almost €180 million in additional wage income for families. Today, the female employment rate has reached nearly 75%, compared to under 50% before 2013.
As a result, Malta has moved from being one of the countries with the lowest employment rates in Europe to being among the top performers. The Prime Minister emphasised that free childcare is therefore considered an investment that continues to deliver economic and social benefits.
Abela also referred to other social measures and incentives being implemented through this year’s Budget, including two consecutive tax cuts – one introduced this year for all working parents – increases in Children’s Allowance beyond what was promised, and the strengthening of the in-work benefit to further encourage labour market participation.
He also announced a new measure included in the free childcare agreement: an annual allowance of €520, in addition to salary, to be given to every childcare worker who speaks Maltese, whether Maltese or foreign. He highlighted the important educational foundation provided by childcare services.
Minister for Home Affairs, Security and Employment Byron Camilleri said that one of the key priorities during negotiations was to retain Maltese-speaking childcare workers in the sector and encourage others to choose it as a career, noting both his ministerial role and his personal experience as a parent.
He described the agreement as the best free childcare deal ever, stating that increased investment ensures the service remains strong, free, and consistently improves for families, while also strengthening workers’ income in the sector. He noted that over the past decade more than 40,600 children have benefited from the service, calling it one of the most significant family-support measures introduced in recent years and crediting it with helping create a new middle class in Malta.
The agreement was signed in the presence of the Prime Minister, Minister Camilleri, senior government officials, Jobsplus representatives, the Malta Chamber of SMEs, and the Childcare Centre Providers Association.
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