However, he also said that the government will be wary of spiralling costs and will aim to reduce the deficit while increasing economic growth in 2023. 

He also said that government finances will remain stable, which should be the focus ahead of an uncertain future. 

Set through a mechanism that was established in the early 1990s following an agreement by social partners, the COLA has so far fluctuated between a low of 58c a week (2015) and a high of €5.82 a week (2010).

However, as a result of the ongoing global cost of living crisis, it is set to increase substantially for the first time in years.

Still, ​​a majority of Maltese businesses expect to increase their prices to cope with the upcoming cost of living adjustment.

​​A survey by the Malta Employers Association among 330 employers, reflecting around 400 companies, found that only 28% expect to absorb the costs of the COLA themselves.

Half of them will partially increase their prices to cover the increase in cost, while 22% will pass the entire cost to consumers.

What do you think of the increase?