Budget 2027: New Fee Hikes and Benefit Restrictions Target Non-EU Workers

27 October 2026, 06:02 · Updated 27 October 2026, 15:00

Following the unveiling of Budget 2027, third-country nationals living in Malta face a series of new restrictions and increased expenses. Measures announced by Finance Minister Clyde Caruana will withdraw access to state-funded childcare and free public transport for non-EU workers starting in 2027.

Under the revised framework, both free bus transport and the free childcare scheme will be restricted exclusively to Maltese citizens and individuals who meet specific residency requirements. The changes end universal access to two major public schemes that were previously open to all registered workers across the country.

Non-EU employees also face higher administrative charges, including increased fees for work permits. The adjustments are expected to raise daily living and employment costs significantly for foreign workers residing on the island.

The announcements drew swift criticism from employer groups and social partners. Representatives expressed concern that imposing higher fees and removing basic subsidies will place additional financial pressure on foreign workers and the sectors that rely on them.

Prime Minister Robert Abela defended the measures, arguing that linking public benefits to criteria such as length of residency is standard practice. Speaking after the budget speech, Abela maintained that the government has previously applied similar conditions to state support schemes.

The restrictions form part of the government's wider fiscal plan for 2027, which combines enhanced financial bonuses for domestic workers with stricter eligibility criteria for state-funded benefits.

Advocacy group the TCN Alliance strongly criticised the newly announced budget measures, describing them as a "slap in the face" to foreign workers already struggling with Malta's cost of living. The organisation pointed out that the national economy relies heavily on non-EU workers across multiple sectors, including hospitality, and warned that compounding their financial pressure would harm both the workers and the wider economy.

Political party Momentum also denounced the government's decisions, describing the additional charges and benefit restrictions imposed on third-country nationals as senseless and "deeply unjust". The party argued that shifting budgetary burdens onto foreign workers fails to solve broader economic issues while unfairly penalising a vulnerable segment of the workforce.

Meanwhile, Nationalist Party leader Alex Borg declined to condemn the controversial measures when questioned by journalists. Despite repeated opportunities on Monday night to outline the opposition's position, Borg avoided criticising the new fees and restrictions targeting third-country nationals.

Human rights organisation aditus condemned the 2027 Budget provisions affecting third-country nationals, warning that the measures actively undermine integration and social cohesion. The foundation stated that the policies leave thousands of non-EU nationals in an increasingly precarious position and effectively send them a message to leave the country.

Rule of law NGO Repubblika echoed these concerns, describing the removal of free public transport and state-funded childcare for certain non-EU workers as unjust, discriminatory, and morally unacceptable. The organisation argued that public fairness cannot be reserved exclusively for those who hold voting rights, stressing that workers paying taxes and contributions should receive equal treatment.

Members of the business community also voiced opposition to the changes. Representatives from the catering and hospitality sector publicly rallied behind foreign staff, urging the government to rethink the added financial burdens. Restaurant operators stated that foreign workers deserve dignity and fairness, emphasising that businesses depend heavily on non-EU employees who already face rising living costs.