Manual of Allowances
Manual of Allowances
Manual of Allowances
P M
C MANUAL
OF ALLOWANCES
MANUAL
OF ALLOWANCES
02 Procedures
2.1 When to pay an Allowance
2.2 Steps to be followed for the payment of an Allowance
2.3 Role of the respective Director
2.4 Role of the respective Director responsible for People Management
2.5 Deduction of Allowances
In conformity with Article 2.4 of the Collective Agreement for Employees in the Public
Service 2017 - 2024, benefits stipulated in this Manual are not additional to any similar
benefits stipulated by Law, or by the enactment of legislation or as provided for by the
respective Sectoral Agreement. In circumstances where benefits may be similar or
overlap, the respective parties shall agree on which benefits are to be retained.
An important section of the manual specifically addresses the Audit Mechanism on the
payment of Allowances. This control mechanism is built on two major principles:
i. allowances are not meant to be paid throughout an officer’s career and they should be
withheld immediately if the conditions for the payment of the allowance are no longer
applicable;
ii. allowances are also to be graded in terms of the degree of disturbance, risk or skill
involved.
i. substantial extra attendance at hours which cannot be easily controlled and/or for
which it would not be cost-effective to pay overtime;
iii. the use of some special skill which the holder of a post is not expected to possess and
for which it is economically feasible to pay an allowance.
With regard to particular allowances, the concept of a graded rate has been introduced.
Allowances are being graded in terms of the degree of disturbance, risk or skill involved.
When the conditions under which an allowance was granted change, it is the responsibility
of the respective Head to withhold the allowance immediately. In this sense, allowances are
paid in exceptional circumstances and should never be regarded as an automatic
augmentation of the pay package/salary.
Whenever a job entails an element of risk and danger, the respective Head, in consultation
with the Health and Safety officer, should first ensure that all the necessary Health and
Safety measures are being taken (including protective clothing and equipment). If the
nature of the work still carries an element of danger or inconvenience, consideration for the
payment of an allowance should then be given.
When an officer qualifies for different allowances which are awarded for the same type of
work/situation, the highest should be paid.
2.2 Steps to be followed for the payment of an Allowance
A request for a new allowance or review of an existing allowance is made by the respective
Director and referred to the People Support & Wellbeing (PSW) Directorate within the
People & Standards Division (P&SD) for consideration, through the respective Director
responsible for People Management.
- Estimated number of employees who will be benefiting from the revised allowance,
indicating their grade / scale.
As a general rule, the conditions for the payment of an allowance remain the same for a
period of five (5) years, unless there is a request from the respective Director, with justified
reasons, to review an existing allowance. Prior to final approval, the PSW Directorate may
request the Ministry concerned to submit further documentation and/or clarifications.
The allowance may also be approved subject to particular conditions. (e.g. an allowance for
performance of higher duties is approved subject to review within six (6) months).
2.3 Role of the respective Director
The respective Director is responsible for the systematic and periodic review of allowances
paid to employees and to ensure:
i. that the original conditions for which an allowance has been granted still apply, and if
not, to immediately withhold the payment of such an allowance.
ii. that the review is carried out on time, in respect of allowances which have been
granted for a specific period of time. If it results that there is ample justification to
continue with the payment of the allowance, the respective Director should make a
fresh submission to the PSW Directorate three (3) months prior to the expiration of
the period of approval. Directors are to state whether the conditions under which
the allowance was paid still apply and to confirm that it is not possible to make other
arrangements to suppress it.
iii. the reasonable grading of allowances in terms of the degree of disturbance, risk or skill
involved. Whenever an officer who is in receipt of these allowances is transferred to
other duties, the respective Director should decide whether the public officer should
still receive the allowance. If the allowance is graded, the respective Director should
carry out a review of the grading.
2.4 Role of the respective Director responsible for
People Management
The responsibility for the approval of allowances has been delegated to Directors
responsible for People Management who are responsible to:
ii. Exercise the necessary control and ensure that the guidelines on the payment of
allowances are strictly adhered to before payments of allowances to the respective
beneficiaries are made.
iii. Audits may be performed to ensure that allowances are paid to officers who are
justifiably entitled to such, at the right levels and that the correct amount is paid.
2.5 Deduction of Allowances
Allowances are paid for actual work performed and they should be immediately withheld
when such work is not being performed. All allowances should cease immediately in the
following instances:
2. When the actual performance of particular work for which an allowance is paid is
no longer performed, for example, when the performance of obnoxious duties or
disturbance to perform duties outside one’s normal working schedule ceases; and
All automatic or fixed allowances, which are specifically incorporated in the pay package, will
not be deducted for absences owing to vacation leave, public holidays, fifteen (15) days of
sick leave (whether taken at a stretch or otherwise), marriage/civil union leave, maternity
leave, paternity leave, leave for medically assisted procreation (I.V.F. leave), adoption leave,
bereavement leave and thirty (30) days special sick leave owing to injury specifically
attributable to duty in every calendar year. Apart from arrangements covered by the
Classification Agreements, payment of allowances should be withheld for any other
absences, whatever the reason, apart from arrangements covered by the Sectoral
Agreements.
Allowances should be deducted when public officers are on un/paid leave on grounds of
public policy. The qualification allowance should continue to be paid when officers are on
paid leave on grounds of public policy. However, it should be withheld when officers, on paid
leave on grounds of public policy, are absent beyond the limits set in the preceding
paragraph. Allowances are not deducted during duty leave.
Allowances are to be deducted, as indicated in the formula below, for each day of absence.
Approval Documentation
Acting Allowance – Senior public officers who are performing ‘acting’ duties of Heads
of Department or of other offices with statutory powers that are required by law, as per
Schedule 2 of the Public Administration Act (PAA).
Substitution Allowance – Senior public officers who are performing ‘acting’ duties of ‘other’
Headship positions that are neither Heads of Department nor occupy offices with statutory
powers that are required by law, as per Schedule 2 of the PAA.
Except for an acting/substitution allowance, employees appointed in an acting capacity are not entitled to any
allowances/benefits tied to the acting position.
____________________________
1. ‘Half the difference’ between salary of higher office and salary of substantive office is paid because if ‘the full
difference’ had to be paid, the salary of Director General + acting allowance would exceed the salary of a
Permanent Secretary.
2. ‘Half the difference’ between salary of substantive grade and the immediate higher office is paid because if ‘
the difference’ had to be paid, the salary of Director + acting allowance would be equivalent to the salary of a
Director General.
Except for an acting/substitution allowance, employees appointed in an acting capacity are not entitled to
any allowances/benefits tied to the acting position.
Worked Examples
Scenario 1(a) – If the substantive salary is higher than the minimum salary of the acting
position (e.g. Director General is performing acting duties of a Director and ceases to
perform duties of Director General).
Total emoluments
Salary of DG €39,414.00
+ Cash Payment of DG €174.00
+ Expense allowance of DG €2,096.44
= Total emoluments €41,684.44
Scenario 1(b) – If the substantive salary is lower than the minimum salary of the acting
position (e.g. Director performing duties of Director General, and ceases to perform duties of
Director).
An acting / substitution allowance equivalent to half the difference between the salary of the
acting position and the salary of the substantive office is to be paid.
Total emoluments
Total emoluments
Scenario 2(a) – If the substantive salary is higher than the minimum salary of the acting
position (e.g. Director General performing acting duties of Director and concurrently
performing duties of the substantive office).
An acting / Substitution allowance equivalent to half the difference between the salary of
the acting position and the salary of the substantive office is to be paid.
Total emoluments
Salary of DG €39,414.00
+ Cash Payment of DG €174.00
+ Expense allowance of DG €2,096.44
+ Acting / Substitution Allowance €1,745.50
= Total emoluments €43,429.94
Scenario 2(b) – If the substantive salary is lower than the minimum salary of the acting
position (e.g. Director performing acting duties of Director General and concurrently
performing duties of the substantive office).
An acting / substitution allowance equivalent to the difference between the salary of the
acting position and the salary of the substantive office is to be paid.
Total emoluments
Scenario 2(c) – If the substantive salary is equal to the salary of the acting position (e.g.
Director performing acting duties of another Director and concurrently performing duties
of the substantive office).
An acting / substitution allowance equivalent to half the difference between the salary of
Director General and the salary of Director is to be paid.
Total emoluments
N.B. Rates in worked examples are as per 2019 rates as specified in the Collective
Agreement for Employees in the Public Service 2017 - 2024.
Approving Authority
Acting pay is paid through delegated authority in terms of section 3.14 of the Manual on
Resourcing Policies and Procedures. Substitution allowance is approved by the respective
Permanent Secretary.
Approval Documentation
Public officers of a certain rank who, in addition to their normal day-to-day duties, are also
charged with the carrying out of higher duties in key positions in Categories ‘A’ and ‘B’
(Scales 1-10).
The allowance payable will be the difference between the officer’s present salary and the
minimum of the next higher grade, to be not less than one increment in the higher scale.
The deputising allowance will be augmented by one increment in the higher scale for every
period of twelve (12) months on deputising duties, provided that the maximum of
the higher scale is not exceeded.
Worked Example
Principal (Scale 9 Step 3) who, in addition to the normal day-to-day duties, is required to
perform the duties of an Assistant Director.
Total emoluments
N.B. Rates in worked examples are as per 2019 rates as specified in the Collective
Agreement for Employees in the Public Service 2017 - 2024.
i. The position for which the allowance is to be paid is considered to be a key position
within the Directorate (e.g. at least a Head of a large section or branch, or of an area
office or of a small department);
ii. An officer has been formally assigned in writing by the respective Head of Department
to deputise in a senior position;
iii. The deputising is made for a period exceeding one (1) month; (the payment of the
allowance will start after the first month of deputising but will cover the whole period of
deputising);
iv. The senior position has been declared vacant following the promotion, retirement,
resignation of the former incumbent. Absence on long leave by the holder of the senior
position does not qualify for payment of the allowance;
v. The officer in receipt of the allowance continues to perform his day-to-day duties in
addition to carrying out the duties and assuming the full responsibility of the senior
position.
vi. The payment of this allowance will be approved by the respective Head of Department
but, before payment is made, the respective Director responsible for People
Management will seek the endorsement of the People Support & Wellbeing Directorate.
Evidence must be produced to show that the request satisfies the conditions listed
above.
In cases of Nursing and Midwifery Professions, approval is obtained from PS, Ministry
for Health or PS, Ministry for the Family, Children’s Rights and Social Solidarity (as
applicable) instead of the PSW Directorate. Such delegated authority is only applicable
for deputising periods not exceeding 12 months, following which, approval would be
required from the People Support & Wellbeing Directorate.
When officers are requested to take over responsibility for the running of a ward, the
requirement of (iv) above is waived.
vii. Officers, who following a selection process are appointed to the same grade for which
they were deputising shall, on a notional basis, have the period in which they were
deputising recognised for the computation into the new salary scale and step.
Clarification
It must be stressed that the carrying out of higher duties does not, as a rule, qualify for the
payment of an allowance.
Approving Authority
Approval Documentation
Scale 1 €7,000.00
Scale 2 €6,000.00
Scale 3 €2,096.44
Scale 4 €1,630.56
Assistant Directors €1,500.00
Approving Authority
Clarification
If the respective approving authority, as indicated in the table above is vacant, approval is
to be granted by the next higher authority.
3.1.4 Communication Allowance
Beneficiaries
Directors General, Directors and Assistant Directors in the Public Service are entitled to
an all-inclusive communication allowance of €1,600 per annum related to the payment
of mobile, residential telephone and internet bills.
Clarification
Officers are expected to provide their mobile and landline phone numbers to the senior
officer(s) they report to.
Approving Documentation
Drivers of the Principal Permanent Secretary, Permanent Secretaries and Cabinet Secretary
are paid an allowance in lieu of overtime, on account of the extra hours worked.
Approving Authority
Beneficiaries
Seconded national experts are staff employed by a national or local public administration,
who are seconded to European Institutions and Agencies so that they can use their
expertise in a particular field.
Seconded personnel must have worked for their employer on a permanent or contract
basis for at least 12 months before their secondment and shall remain in the service of that
employer throughout the period of secondment.
Full salary paid by the Government of Malta. Salary includes any National Insurance and
superannuation contributions.
The Government of Malta as the SNE’s employer shall undertake to continue to pay his
salary, to maintain his administrative status (permanent official or contract staff member)
throughout the period of secondment and to inform the Directorate-General for Personnel
and Administration of any change in the SNE’s situation in this regard. The Government of
Malta shall also continue to be responsible for all his social rights, particularly social security
and pension. The termination of or change in the SNE’s administrative status (permanent
official or contract staff member) may lead to the termination of his secondment by
the Commission, without notice, in accordance with Article 10(2)(c) of the Commission
Decision of 12/11/2008.
Unless the SNE is “cost-free”, all allowances are paid by European Institution or Agency in
question and not by the Government of Malta (see below).
“Cost-free SNEs” means SNEs for whom any European Institution or Agency does not pay
any of the allowances provided for other than those related to the performance of their
duties during their secondment.
These allowances are intended to cover SNEs’ living expenses in the place of secondment
on a flat-rate basis and shall in no circumstances be construed as remuneration paid by the
Commission.
Subsistence allowances shall be payable for every day of the week, including during periods
of mission, annual leave, special leave and holidays granted by the Commission.
Commission Decision of 12/11/2008 laying down rules on the secondment to the commission
of national experts and national experts in professional training applies to secondment with the
Commission. Other Institutions and Agencies may have ad hoc rules governing secondment.
Approving Authority
Nominations are to be made by the Permanent Secretary of the respective line Ministry and
channelled through the Ministry for European Affairs and Equality for the approval of the
Principal Permanent Secretary.
Documentation
Decision of the High Representative of the Union for Foreign Affairs and Security Policy of
04/02/2014 establishing the rules applicable to National Experts seconded to the
European External Action Service.
In case of other European Institutions and Agencies, possible ad hoc rules governing
secondment may apply.
3.3 Allowances Related To Work
Policy
Public Officers who successfully complete accredited courses, either with educational
institutions or those run/sponsored by the Institute for the Public Services are granted a
qualification allowance. A qualification allowance is paid to public officers primarily to
encourage these officers to improve their qualifications so that they could, in turn, provide
a better service to the public.
Beneficiaries
Public officers who hold a qualification (academic, professional and/or technical) which is
both recognised and relevant to the duties pertaining to their grade/position.
Public officers in General Service Grades and Public Officers in Senior Management Grades
(Scales 1 - 5) who obtain recognised qualifications in any of the areas of study listed in
Appendix A, are entitled to a qualification allowance, as such areas of study are considered
directly linked with their duties, irrispective of the posting of these officers.
Public officers who obtain recognised qualifications in other areas, receive the related
qualification allowance only if the qualification obtained is directly related to the respective
duties.
The public officer applying for a qualification allowance will be eligible to apply for a
qualification allowance from the date when the final results are published. In this regard, the
applicant will need to produce documentary evidence that he has successfully completed
all modules required for the conferment of the qualification plus an official document from
the University/educational institution that s/he has been approved for the award of the
qualification.
Other conditions of payment
A public officer becomes entitled to receive the payment of the qualification allowance
for a first degree, either where the degree is:
i. not a pre-requisite; or
ii. additional to the pre-requisite qualification for appointment and has been obtained
at the request of the Government or is in a specialised area which is of interest to
one’s respective Directorate. However, the entitlement to an allowance in terms of
this subparagraph shall not apply in the case of officers appointed to a post in
virtue of their possession of a first “General” degree and then proceed to obtain a
follow-up First “Honours” degree.
In the case of the payment of an allowance for a diploma, the diploma offered by
an officer where the entry requirement is at degree level, should be a post-graduate
diploma. However, in the case of the General Service grades, holders of a Diploma in
Public Administration are entitled to the payment of the relative qualification allowance
even if the officers have entered the Public Service in virtue of their possession of a
degree.
e) where officers apply for payment of a qualification allowance but have continued
their studies to obtain a higher qualification, employees are to request the educational
institute concerned and the National Commission for Further and Higher Education
(NCFHE) to confirm that:
i. the relevant course has been successfully completed;
ii. the qualification that would have been obtained, if they had not continued their
higher studies, would have been recognised; and
iii. the relevant MQF level.
Once confirmation is received, the approving authority may proceed with the payment
of the respective qualification allowance.
f) It is recognised that some Classification and Grading Agreements may provide
marginally more advantageous conditions for the payment of a qualification
allowance than the standard provisions outlined in the Manual of Allowances. In cases
of disagreements between the standard provisions and Classification and Grading
Agreements, the more advantageous provisions will continue to apply.
g) A limited number of Agreements include additional conditions for the payment of the
allowance which are specific to the particular Class (e.g. in the case of the Technical
Class, possession of the Higher Technician Diploma and/or the Ordinary Technician
Diploma do not attract an allowance. In the case of the Learning Support Assistant and
Kindergarten Assistant Grades, a Kindergarten Assistant in possession of the Diploma
in Facilitating Inclusive Education and receiving the relevant Allowance is expected to
perform duties as Learning Support Assistant). These specific conditions will likewise
continue to apply.
i) Employees who are currently reading for a higher qualification shall benefit from the
allowance upon successful attainment of the respective qualification.
j) Employees who will be granted a full or partial funded course of study through a
sponsorship by the Government of Malta, will benefit from the respective qualification
allowance after the successful completion of the said course of study and also the
lapse of the service obligation as outlined in the respective undertaking signed by the
employee.
Clarification
An award is an accredited course which does not fulfil the entire requirements of a
qualification in terms of the minimum number of credits established by the National
Commission for Further and Higher Education. In this regard, it is being clarified that, as
distinct from a qualification, an Award does not entitle a public officer to qualification
allowance.
Approving Authority
The respective Director responsible for People Management who must certify that:
1. the qualification obtained is relevant to the duties of the officer requesting the
qualifications allowance; and
2. conditions of payment (a – j above), have been satisfied.
Approval Documentation
Policy
An allowance which is paid to officers, for the wear and tear of their clothing on account of
their work.
Beneficiaries
€233.00 per annum graded at 100%, 75%, 50% and 25% according to the
degree of wear and tear to which clothing is exposed because of official
duties.
1) Clothing allowance does not cover instances when employees who are normally
required to wear a uniform are advised to wear civilian clothing.
2) The respective Director determines the grade of payment based on the following
criteria:
a) the degree and frequency of exposure to the working environment which is
damaging to clothing;
b) the degree of damage to clothing caused by the working environment;
c) the number of pieces of clothing submitted to wear and tear.
Clarification
Employees performing duties that require their presence in an environment which causes
wear and tear to their clothing, and who at present are already receiving an allowance
which is higher than the amount which the respective Director establishes for that office,
will continue to receive such an amount on a personal basis, as long as they continue to
perform such duties.
Approving Authority
Approval Documentation
Policy
Public officers, who are required to work regularly after office hours or undertake duties of
an extraordinary nature beyond office hours, and do not benefit from any form of
compensation for this additional work, are paid a disturbance allowance.
Beneficiaries
Officers who are not entitled to overtime payment, by virtue of PSMC provision 2.2.7.1 and
policies emanating thereof, in force from time to time.
Contractual positions, which contracts provide for the payment of a disturbance allowance,
and/or performance bonus, unless otherwise stated in the respective Sectoral Agreement.
Clarification
Public Officers who work on a reduced time-table and who are entitled to a disturbance
allowance in lieu of overtime will be paid their normal hourly rate for extra hours worked
beyond their reduced time-table. The disturbance allowance will be paid when they exceed
the weekly hours worked by a full-time counterpart. All extra hours worked beyond one’s
reduced weekly hours, as well as hours worked beyond the weekly hours
worked by a full-time counterpart must be invariably recorded and certified by the
respective Head.
Approving Authority
Director responsible for People Management or as indicated in the respective Sectoral
Agreement.
Approval Documentation
Beneficiaries
Officers who are required to be on ‘stand by’ at home outside normal hours of work are
eligible for payment of a stand-by allowance at the rates stipulated below:
The above rates are to be paid by those departments where an approved “Stand-by”
system is operational. Other departments have to seek prior approval from the People
Support & Wellbeing Directorate before introducing this system.
Approving Authority
Approval Documentation
Policy
Public officers who perform obnoxious duties or carry out work which entail
an element of risk are paid an allowance in compensation for this discomfort.
These allowances are not an incentive for workmen to incur unnecessary risks or develop
into a regular emolument. For this purpose, payment of allowances is to be reviewed periodically.
Those categories of officers who, prior to the publication date of this updated manual,
were entitled to an Allowance for Obnoxious and Hazardous duties at different rates
which were more beneficial to these categories, shall retain the more beneficial provisions
on a personal basis.
Approving Authority
Government employees who work on a roster basis benefit from the payment of a shift
allowance as stipulated hereunder or in their respective Sectoral Agreement.
Night shift means a shift involving at least 4.5 hrs of work between 20.00
hours and 06.00 hours of the following day.
Approving Authority
Approval Documentation
a) requests by public officers for the use of a mobile phone at Government expense
should invariably be addressed to the respective Permanent Secretaries, who will use
their good judgement to determine whether requests are justified in the light of the
nature of the officers’ duties and of the availability of funds. Requests by officers in
grades or positions below that of Director should only be granted on an exceptional
basis when the nature of the officers’ duties specifically demands it (e.g. civil
protection, security, field work);
b) bills issued in relation to the use of mobile phones should be issued on an itemised
basis, giving details of all local and international calls as well as any charges incurred for
other services;
c) expenses incurred on local and overseas calls and on any other services which are not
made on official business are to be refunded by the beneficiary to the Department or
Ministry concerned;
d) in the case of all public officers who are entitled to the use of a mobile phone, the
maximum expenditure to be covered by Government has been established at €815.28
per annum. Expenditures above this ceiling would have to be refunded. However, there
may be exceptional situations where a higher expenditure may be allowed, subject to
the specific approval of the responsible Permanent Secretary;
e) in those cases where it is considered necessary to provide the use of a mobile phone to
a group of employees in virtue of special conditions of employment, the grant of such a
benefit should be cleared a priori with the People & Standards Division but should also
be subject to the approval of the responsible Permanent Secretary; and
f) new mobile phones, inclusive of any accessories, purchased for official use should not
exceed €186.35. Should beneficiaries opt to purchase a mobile phone costing more
than this amount, they should top up the capped amount, out of pocket.
Approval Documentation
The allowances and the terms on which these allowances are payable are issued in the
Manual on Staff Development in Public Administration issued by the Institute for the
Public Services.
04
Frequently Asked Questions
(FAQs)
After how many days sick leave should a pensionable public officer have his
allowances deducted?
Allowances should be deducted after fifteen (15) days sick leave. This is applicable to all
categories of staff, both to non-pensionable public officers who are entitled to thirty (30)
days sick leave on full-pay and thirty (30) days on half-pay per year and pensionable public
officers who are entitled to six (6) months sick leave on full-pay in every twelve (12) month
period.
A disturbance allowance is paid in circumstances where public officers are required to work
regularly after office hours or undertake duties of an extraordinary nature beyond office
hours.
Can a public officer receive more than one allowance at the same time?
A public officer may be paid more than one allowance at the same time, provided that all
the allowances are paid on account of different circumstances and conditions. For example,
an Architect may receive a qualification allowance, an allowance for Obnoxious and
Hazardous duties for works at heights, and a deputising allowance at the same time.
05
Appendices
Appendix A
Areas of Study Considered Relevant to the Duties of Public Officers in the General
Service Grades and Public Officers in Senior Management Grades (Scales 1-5)
Policy:
- Public policy;
- Social policy;
- Financial policy;
- Education policy;
- Environment policy;
- Policy and governance;
- Strategy development and strategic thinking;
- Leadership;
- Management;
- Sustainable development;
- Public Administration and management;
- Economic Policy, data analysis and related subjects;
- Equality; and
- Other policy areas.
People Management:
- Selection;
- Compensation;
- Performance management;
- HR Development / Training;
- HR Strategy;
- Industrial relations; and
- Other hands-on aspects.
Other Areas:
- Philosophy
- Sociology
- Psychology
- Psychotherapy
- Counselling / Guidance / Mentoring
- Anthropology
- Emotional Intelligence
- Behavioral Studies
- Occupational Therapy
- Lifelong Learning
- Research and Innovation
Accounting