Retrospective Payment of Social Security Contributions allows Maltese residents, or persons registered under the Social Security Act (Cap. 318), to fill gaps in their contribution history by paying back‑dated contributions. The aim is to help applicants qualify for a contributory social security pension or to improve their current or potential pension rate.
When applying, the Department of Social Security will assess the contribution record and issue a Bill of Arrears together with a comparative pension rate estimate showing the projected outcome with and without the retrospective payments. A formal letter will be issued by the Department informing the applicant whether the application is rejected or if paying the missing contributions would not improve the applicant’s pension rate, so that the applicant can make an informed decision before committing funds.
To be eligible, a person must normally be resident in Malta, registered for Maltese social security purposes, aged between 59 and 64 (not yet 65), in gainful occupation at the point of application for the retrospective payment, and registered as such with the Jobsplus employment agency. From January 2022, people who reach age 59 and who are in receipt of an Invalidity Pension may also pay retrospective contributions for up to five years. In addition, persons who were in employment before Jobsplus was set up in 1990 and who lack a record of paid contributions for that employment are given the possibility to pay up to five years of missing contributions.
Under this scheme, eligible applicants may be allowed to settle up to 260 social security contributions - equivalent to five years of insurance. These do not have to be the last five years before the application; the arrears can relate to earlier eligible periods. However, arrears cannot be paid for any period during which the applicant was not normally resident in Malta.
In the Malta Budget 2026, the Minister for Finance announced that applicants with less than 10 years of paid contributions no longer need to be in gainful occupation to apply for retrospective contributions. This legislative amendment will help those ineligible for a retirement pension due to insufficient contributions meet the minimum 10-year requirement.
The amount due for retrospective contributions is charged at the standard Class 2 Rate SA applicable in the year you make the payment. Once paid and posted to your record, these contributions count for pension eligibility and rate calculations in line with the prevailing rules. This targeted, time‑limited facility provides a structured way to regularise missing contributions and protect your contributory pension entitlements.
Our team at PwC Malta can guide through understanding the process and the applicability of such facility as may be required.
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