Malta
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
Malta
Everything you need to know about payroll, benefits & hiring top talent in Malta
Currency
Euro (EUR)
Salary payment frequency
Monthly
Capital
Valletta
Time Zone
GMT - 0:00
Official Languages
Maltese and English
Is English spoken?
Yes
Quick Links
Introduction
General Overview & Economic Facts
- Malta, officially known as the Republic of Malta, is an island nation located in the Mediterranean Sea and part of Southern Europe
- It spans an area of approximately 316 km2 (122 sq mi2) and has a population of approximately 516,000
- Malta ranks highly in terms of human development with a ranking of 28th on the HDI (2019)
- Malta’s economy ranks 132nd in terms of nominal GDP (2022) and 146th in terms of PPP (2022)
Why Employ In Malta?
- The main exports from Malta include refined petroleum, medication and integrated circuits
- 10.33% of the population is between the ages of 15 and 24 years, with 41.10% of the population being between the ages of 25 and 54. Malta has a fairly mature population, making it an excellent country to hire more experienced professionals
Overview Of The Labour Law
- The main source of labour law is the Employment and Industrial Relations Act, the Constitution, the Employment Commission Act and applicable EU Regulations and Directives
- The labour laws regulate employment contracts, minimum wage, bonuses, leave, working hours, leave, notice periods and severance pay
- Malta’ labour regulations offer protection to both employers and employees
Fun Country Facts
- Malta was ruled by several empires throughout history, including the Phoenicians, Carthaginians, Romans, Byzantines, Arabs, Normans, Sicilians, Spanish, Knights Templars, French, and finally the British
- There are several sunken World War Two ships, submarines and fighter planes scattered around the coastline of Malta
- Malta has more tourists than residents
Why Use Playroll Services For Malta?
- Employing in Malta requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Malta
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Social Security
Employees born before 31 December 1961
Calculated on a maximum annual salary of EUR 19,707.48
10.00%
Employees born from 1 January 1962 onwards
Calculated on a maximum annual salary of EUR 25,985.96
10.00%
Maternity Leave Fund
Employees born before 31 December 1961
Calculated on a maximum annual salary of EUR 19,760.00
0.30%
Employees born from 1 January 1962 onwards
Calculated on a maximum annual salary of EUR 26,000.00
0.30%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Social Security
Employees born before 31 December 1961
Calculated on a maximum annual salary of EUR 19,707.48
10.00%
Employees born from 1 January 1962 onwards
Calculated on a maximum annual salary of EUR 25,985.96
10.00%
Income Tax
Income tax is calculated on ‘World Wide Income’
Single
0.00 – 9,100.00
0.00%
9,101.00 – 14,500.00
15.00% less EUR 1,365.00
14,501.00 – 19,500.00
25.00% less EUR 2,815.00
19,501.00 – 60,000.00
25.00% less EUR 2,725.00
60,001.00 or more
35% less EUR 8,725.00
Married
0.00 – 12,700.00
0.00%
12,701.00 – 21,200.00
15.00% less EUR 1,905.00
21,201.00 – 28,700.00
25.00% less EUR 4,025.00
28,701.00 – 60,000.00
35.00% less EUR 9,905.00
Parent
0.00 – 10,500.00
0.00%
10,501.00 – 15,800.00
15.00% less EUR 1,575.00
15,801.00 – 21,200.00
25.00% less EUR 3,155.00
21,201.00 – 60,000.00
25.00% less EUR 3,050.00
60,001.00 or more
35.00% less EUR 9,050.00
Employment Terms
General
Minimum Wage
- EUR 182.83 per week
Working Hours
- Maximum of 40 hours per week
- Minimum meal interval of 15 minutes
- Typical working hours are 08h00 to 17h00, Monday to Friday
Overtime
- Maximum of 8 hours per week
Notice Period
- Employed between 0 and 6 months- 1 weeks’ notice
- Employed between 6 months and 2 years- 2 weeks’ notice
- Employed between 2 and 4 years- 4 weeks’ notice
- Employed between 4 and 7 years- 8 weeks’ notice
- Employed for 7 or more years- 8 weeks’ notice plus an additional 1 week for every subsequent year of service or part thereof up to a maximum of 12 weeks
Severance Pay
- There is no mandatory severance pay
Probation Period
- The first 6 months of an employment contract shall be probationary employment unless otherwise agreed by both parties for a shorter probation period
Bonus
- There is a statutory bonus as well as a weekly allowance totaling EUR 512.52
- Full time employees are paid EUR 512.52 and part time employees are paid EUR 0.25 per hour worked
Public Holidays
Public holidays 2022
- January 1st – New Year’s Day
- February 10th – Feast of St Paul’s Shipwreck
- March 19th – Feast of St Joseph
- March 31st – Freedom Day
- April 15th – Good Friday
- May 1st – Worker’s Day
- June 7th – Sette Giugno
- June 29th – Feast of St. Peter and St. Paul
- August 15th – Feast of Assumption
- September 8th – Feast of our Lady of Victories
- September 21st – Independence Day
- December 8th – Feast of the Immaculate Conception
- December 13th – Republic Day
- December 25th – Christmas Day
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- 224 hours (192 hours basic leave entitlement plus 32 hours in lieu of the four Public Holidays that fall on weekends)
Sick Leave
- Paid leave
- Paid by employer
- 2 weeks (calculated in hours)
Maternity Leave
- Paid leave
- Paid by employer and Social Security
- 18 weeks
Paternity Leave (called birth leave)
- Paid leave
- Paid by employer
- 1 day
Parental Leave
- Paid leave
- Unpaid leave
- 4 months
Bereavement Leave
- Paid leave
- Paid by employer
- 1 day
Marriage Leave
- Paid leave
- Paid by employer
- 2 days
Adoption Leave
- Paid leave
- Paid by employer and Social Security
- 18 weeks
Jury Service Leave
- Paid leave
- Paid by employer
- For duration of service
Urgent Family Matters
- Paid leave
- Paid by employer
- 15 hours
Injury Leave
- Paid leave
- Paid by employer and Social Security
- 1 year
Start hiring in Malta today!