Contributory retirement pensions can be divided into two schemes, the flat rate pensions and the two-thirds pensions.
The flat rate pensions are awarded to pensioners who also receive a service pension and to pensioners who have a low pensionable income. The two-thirds pensions are awarded to all other pensioners.
A full retirement pension requires a yearly average of at least 50 contributions from 1956 or from age 19 (whichever occurs later) and/or from age 18 if born after 1958 up to the last full year prior to the year of retirement.
With effect from January 2014, the pension age has increased to 62 years for both males and females and the accumulation of contributions for a full two-thirds pension has increased to 35 years.
Non-Contributory Age Pensions
Unemployed persons who are residents in Malta, over 60 and do not qualify for a contributory retirement pension because they do not have the minimum number of contributions paid or credited, may be entitled to a non-contributory age pension if they satisfy the capital and income means test.
Contributory invalidity pensions are awarded to persons who have at least paid 250 contributions and are suffering from a medical condition which according to the medical board of the Social Security Department renders them as permanently incapable for any full-time and/or any part-time employment.
Such persons must be incapable for work (suffering from their medical condition) for at least six months prior to their claim and in continuous employment and/or registering for work on the Part 1 register held by the Employment & Training Corporation for at least one (1) year.
There are eight rates of Invalidity Pension according to the yearly average of contributions paid and/or credited and the civil status of the claimant. These rates are not related to the salary earned while in employment.
Contributory widow’s pensions are awarded to widows whose spouse had paid not less than 156 contributions and to widows where their spouse died as a result of a personal injury during the course of their duties (employment).
A widow's pension is also payable in full without any deductions if widow is carrying out a full-time gainful occupation and, where a widow re-marries, a flat rate widow's pension will be due.