No more NI numbers, just an ID for social security contributions
National Insurance numbers for Maltese identification card holders have been made obsolete following an announcement yesterday by Family Minister Michael Farrugia that social security contributions are now made through ID card numbers.
As part of a simplification process, Mr Farrugia said that the abolition of NI numbers for Maltese ID card holders will make residents employable more quickly, as they would not need to register for an NI number, and would also make social security contributions simpler for employers.
This has come into effect as from 1 October 2016, Mr Farrugia said. Up until October, every person residing in Malta was assigned an NI number, and once in employment that number would be used to make social security contributions. It is also used for individual pension funds. As of this month, every person aged 16 and above would have their ID card number placed on the social security registry, and all necessary payments paid through that.
Foreign persons working in Malta who are residents but do not have a Maltese ID card are still required to use the NI number for social security contributions under the previous system.
Mr Farrugia said that roughly 4,000 people per year turn 16, and will therefore be benefitting from this simplification process, as they would not need to register for their NI number. He confirmed that all those Maltese ID card holders need not apply or register to benefit from this change, as it has taken place automatically by the social security department. He also said that a consultation process had been carried out prior to the commencement of this development, with employers under the Malta Council for Economic and Social Development, the Inland Revenue Department, software operators for payroll systems and Jobs+ (previously the Education and Training Centre) all in agreement that the proposed changes would not cause difficulty and is a positive step forward.
All Maltese ID card holders, with ID numbers ending with M, L, G and H will benefit from this change.
Mr Farrugia said that this is just one part of a series of simplification of procedures not just related to social security.