Financial Coach Patrick DeBattista has called for greater social protections and rights, including sick pay and parental leave, for self-employed workers.
Mr DeBattista tells WhosWho.mt that while the self-employed make up 13.7 per cent of Malta’s workforce — roughly 45,000 people — they currently receive no sick pay, no parental leave, and no employer pension contribution.
“If you are employed and break your leg, your salary continues. If you are self-employed, you call your clients and apologise,” he said.
"The fix is to extend sick pay through the national insurance system they already pay into, introduce a government-matched pension contribution for sole traders, and provide parental leave that does not require an employer to qualify.”
This is one of eight financial proposals Mr DeBattista has proposed to political parties ahead of the upcoming general election.
Just like fellow financial advisor Luca Caruana, he is also calling for free financial literacy at schools, but said such programmes should also be extended to adults.
He also said that 16–year-olds should be allowed to open an investing account, pointing out that a 16–year-old who invests €100 a month at 8 per cent annual growth gets to retire at 65 with €731,000, versus €620,000 if they start at 18.
Moreover, he said the PL’s proposed €5,000 child bonus should be replaced by a €5,000 ETF portfolio, locked until the child turns 25, pointing out that this investment could end up growing to €34,000 at 8 per cent average annual growth.
“The difference at 25 could be a deposit on a home versus nothing,” he said.
Other proposals include the auto-enrolment of workers into a workplace pension scheme, with the right to opt out, and modest tax credits for first-time investors in stocks and shares – similar to the first-time property buyer scheme.
“Property cannot be the only path to wealth, but only 24 per cent of Maltese adults have ever invested in stocks and shares,” he said. “A modest tax credit or matched contribution for first-time investors would get people started — and once someone starts, the habit tends to stick.”
Mr Debattista also said that businesses above a certain size should be obliged to provide their staff access to independent financial education, and that people should be provided a free financial health check when they turn 30, 40 and 50.
“At 30 most people have not started a pension. At 40 most are carrying debt they have not faced. At 50 most are quietly worried about retirement with no plan,” he said.
“Three hours over a lifetime. Because without financial health, there is little point promoting mental or physical health.”
