‘Parental leave could reshape work, but at what cost?’ Three Maltese CEOs on the first election proposal

Malta is heading into an early election set for May 30th. Businesses are bracing for a closely watched campaign period. Among the first policy signals, the Government has put forward a proposal to extend parental leave provisions, placing family policy at the centre of the economic conversation.

The measures would see maternity leave increase by eight weeks to a total of 26 weeks, while paternity leave would double from two weeks to one month. In addition, six months of parental leave would be fully paid by the Government, with parents receiving their salary up to a €70,000 annual cap, and the flexibility to allocate this leave as they see fit.

For many employers, the direction is broadly welcomed, albeit with clear reservations.

Speaking to MaltaCEOs, Martina Zammit, TV producer and co-founder of VSquared, described the proposal as a step forward both personally and professionally. “As a mother, I think this is great. I strongly believe the first six months with your child are extremely important,” she says. “As an employer, I also see this as a positive step overall. Supporting parents is important, and these initiatives move in the right direction to promote a better work-life balance between both the birthing and non-birthing parent.”

However, she cautioned that the realities differ significantly across business sizes. “There needs to be a clear distinction between small and larger businesses. Larger companies, or those with stronger profit margins, are prepared to handle longer absences. For SMEs or businesses operating on tighter margins, it can be much more challenging to manage.”

While Government-funded salaries ease part of the burden, Ms Zammit pointed to operational strain as the core issue. “The main challenge for businesses is the day-to-day operations. Finding someone to step in and cover that role can be difficult, especially for smaller teams.”

She also raised concerns around career progression. “It’s important that mothers who take this leave are protected in terms of their role and progression. There should be clear safeguards to make sure they don’t lose their position or opportunities within the company, as sometimes extended leave can unintentionally sideline employees.”

A similar dual perspective was echoed by Joanna Delia, doctor and founder of People & Skin, who noted that the proposal reflects progress, but still raises structural questions. “I cannot separate my employer status from my parent status. Both are very real realities I live,” she says.

Dr Delia welcomed the move but argued that the framework remains uneven. “There should be no distinction between parents. The first six weeks for the birthing parent should remain as such, but the rest should not be ascribed to a parent of one gender or another. Let the parents decide, as in the case of same-sex parents.”

She warned that while extended leave may improve bonding and reduce stress, it could also have unintended consequences on gender equality in the workplace. “The longer they are away from their job, the less employable and promotable women will be deemed,” she says, advocating instead for shared responsibility. “Let the parents decide which parent takes paid leave. It will balance the court.”

Beyond leave duration, Dr Delia stressed that flexibility remains the more pressing need. “My view and my experience is that parents need flexibility, not necessarily time off. The more flexible the work arrangements, and the more understanding of this requirement, the more serene and productive a parent is.”

Rebecca Bonnici, CEO of BELS Language School, struck a more cautious tone, noting that the proposal must be assessed within a broader policy framework. “Supporting families, mothers, fathers, and work-life balance is important. No serious employer should dismiss that,” she says.

At the same time, she emphasised the need for a measured response. “The practical impact on businesses, especially SMEs, service-led companies, and sectors already facing staffing pressures, needs to be properly understood. Good policy should support families without unintentionally making employers more hesitant, more stretched, or less able to plan.”

Bonnici added that key details remain critical. “How it is funded, how it is administered, how replacement staffing is handled, and how smaller businesses are protected from operational strain will all matter. The intention may be positive, but the implementation must be realistic.”

With the election campaign underway, proposals such as these will draw increased scrutiny from both the business community and the wider public. Let’s see what other proposals for the business community arise in this election month.