Thousands excluded from new long service allowance – Sultana silent

Thousands of government employees are protesting what they describe as blatant discrimination after being excluded from a new long-service allowance set to be paid out in March, while unions remain conspicuously quiet.

Trade union sources told The Shift that thousands of workers employed across the wider public service – including agencies, regulators and state-owned companies – are furious at being left out of the scheme, despite spending decades working for the State.

These workers, who are urging their unions to act, are arguing that their exclusion is unjustifiable.

The Shift reported that the allowance was introduced following the signing of a new collective agreement and applies only to civil servants working directly within government departments, ministries and the disciplined forces, including the police and the army.

Civil servants with more than 20 years’ service will receive annual payments ranging from €300 to €1,000, starting in March.

Those with between 20 and 25 years’ service will receive €300 a year, rising incrementally to €1,000 for those who have spent over 35 years on the public payroll. The payments will be made regardless of role, grade, or performance.

However, an estimated 20,000 public sector employees working in government agencies and state-owned entities – including Enemalta, Water Services Corporation, WasteServ, health, education and several regulators – have been excluded entirely, despite performing essential public functions and being funded by taxpayers.

Workers in the private sector have also voiced anger at the scheme, pointing out that they, too, have worked long years, often under harsher conditions, while paying equal or higher taxes, yet receive none of the benefits routinely reserved for public employees.

The latest allowance is expected to cost hundreds of thousands, if not millions, of euros annually.

Its introduction comes as Prime Minister Robert Abela is widely believed to be considering calling a general election in the coming weeks.

Asked by The Shift to explain why workers in the wider public sector were excluded, Principal Permanent Secretary Tony Sultana failed to reply. He also declined to answer questions on how many civil servants will qualify for the allowance in its first year or what its total cost to taxpayers will be.

Sultana’s silence has only fuelled criticism that the scheme is another example of the Labour government using public funds to secure political loyalty ahead of an election.

Over the past year, the government has intensified its reliance on cash handouts, vouchers and one-off payments as tools of political messaging rather than sound economic policy.

From energy vouchers to tax refund cheques, including payments sent to individuals who pay no tax at all, state largesse has become a central feature of Labour’s electoral strategy.

Yet the approach has already shown its limits.

Despite an unprecedented wave of pre-election handouts, Abela suffered a significant loss of votes in the 2024 European Parliament elections – raising questions about how long this strategy can continue to buy consent.