Discover the global hiring and employment landscape in Malta—nestled in the heart of the Mediterranean, Malta combines a thriving economy with a favorable regulatory environment. With its strategic location and multilingual workforce, Malta is an attractive destination for businesses seeking growth opportunities in Europe and beyond.
Explore the employment essentials including payroll, personal income tax, statutory contributions, annual leaves, minimum wage, terminations, visa requirements, and more. Gain valuable compliance insights for a smooth entry into the dynamic Malta market with Slasify's global premium HR platform.
| Capital | Valletta |
| Currency | Euro (EUR) |
| Payroll Cycle | Monthly |
| Minimum Wage | EUR 221.78 per week |
| Annual Leave | 4 weeks and 32 hours |
| Personal Income Tax | Up to 35% |
| Taxable Income - Single (EUR) | Taxable Income - Married (EUR) | Taxable Income - Parent (EUR) | Progressive Tax Rate (%) |
|---|---|---|---|
| Up to 12,000 | Up to 15,000 | Up to 13,000 | - |
| 12,001–16,000 | 15,001–23,000 | 13,001–17,500 | 15 |
| 16,001–60,000 | 23,001–60,000 | 17,501–60,000 | 25 |
| Over 60,000 | Over 60,000 | Over 60,000 | 35 |
Local Tax
There are no local taxes on employment income in Malta.
Generally, both the employer and the employee are each required to pay social security contributions at the rate of 10% of the individual employee's salary and at fixed rates of EUR 53.23 per week for annual salaries exceeding EUR 27,679, provided the employee was born on or after January 1, 1962.
Employers are also generally required to contribute 0.3% of the individual employee's salary and at fixed rates of EUR 1.60 per week for annual salaries exceeding EUR 27,679 for maternity.
| Category | Description |
|---|---|
| A | Persons under 18 years of age earning not more than the amount indicated |
| B | Persons aged 18 and over, earning not more than the amount indicated |
| C | All persons whose basic weekly wage is between the amounts indicated |
| D | All persons whose basic weekly wage is equal to or exceeds the amount indicated |
| E | Students under 18 years of age |
| F | Students 18 years old and over |
Note: Students in categories E and F refer to those who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration.
| Category | Basic Weekly Wage | Weekly Rate Payable | Maternity |
|---|---|---|---|
| A | EUR 0.10–221.78 | EUR 6.62 | EUR 0.20 |
| B | EUR 0.10–221.78 | EUR 22.18 | EUR 0.64 |
| Persons born up to December 31, 1961 | |||
| C | EUR 221.78–451.92 | 10% | 0.30% |
| D | Over EUR 451.92 | EUR 45.19 | EUR 1.36 |
| Persons born from January 1, 1962 onwards | |||
| C | EUR 221.78–544.29 | 10% | 0.30% |
| D | Over EUR 544.29 | EUR 54.43 | EUR 1.63 |
| E | N.A. | 10% (Max. EUR 4.38) | 0.3% (Max. EUR 0.13) |
| F | N.A. | 10% (Max. EUR 7.94) | 0.3% (Max. EUR 0.24) |
| Category | Basic Weekly Wage | Weekly Rate Payable |
|---|---|---|
| A | EUR 0.10–221.78 | EUR 6.62 |
| B | EUR 0.10–221.78 | EUR 22.18** |
| Persons born up to December 31, 1961 | ||
| C | EUR 221.78–451.92 | 10% |
| D | Over EUR 451.92 | EUR 45.19 |
| Persons born from January 1, 1962 onwards | ||
| C | EUR 221.78–544.29 | 10% |
| D | Over EUR 544.29 | EUR 54.43 |
| E | N.A. | 10% (Max. EUR 4.38) |
| F | N.A. | 10% (Max. EUR 7.94) |
**Or, if the employee chooses, 10% of the basic weekly wage. This rate of contribution entitles the contributor to pro-rata contributory benefits.
Employers shall pay wages to their employees at regular intervals which shall not exceed 4 weeks in arrears.
Effective January 1, 2025, the national minimum wage in Malta is set at EUR 221.78 per week. Those under 18 years old shall have a reduced minimum wage, as follows:
| Age | Minimum wage (EUR) |
|---|---|
| 17 years old | 215 |
| Under 17 years old | 212.16 |
Other Sectoral Minimum Wages determined from the economic activity of the enterprise as stipulated in the applicable WRO may apply. Every employee is entitled to the statutory bonus and weekly allowance.
Employees are entitled to a statutory bonus, which is payable every 6 months at EUR 135.10. The amount is payable by the end of June and from December 15–23 of each year. When calculating part of the statutory bonus, it can be worked out at EUR 0.74 per calendar day including Saturdays and Sundays.
Furthermore, employees are also entitled to a weekly allowance, which is payable every 6 months at EUR 121.16. The amount is payable by the end of March and September of each year. When calculating part of the weekly allowance, it amounts to EUR 4.66 per working week or a proportion thereof.
There is no at-will termination in Malta, meaning that employers generally have to have a justified reason for dismissing their employees. These reasons include redundancy, the employee reaching legal retirement age and other causes justifying summary dismissal.
In any case, dismissal that is discriminatory shall be deemed unfair regardless if it is done on grounds of redundancy or for a good and sufficient cause.
In case of indefinite contracts which extend beyond the probation period, notice has to be given prior to the termination of employment by the employee, or by the employer in cases of redundancy.
| Length of service | Notice period |
|---|---|
| More than 1 month, but no more than 6 months | 1 week |
| More than 6 month, but no more than 2 years | 2 weeks |
| More than 2 years, but no more than 4 years | 4 weeks |
| More than 4 years, but no more than 7 years | 8 weeks |
Those who has worked for more than 7 continuous years shall have their notice period extended by an additional week for every subsequent year of service or part thereof up to a maximum of 12 weeks.
Alternatively, the terminating party can pay the other in lieu of notice, as follows:
| Notice when given by the employee | Notice when given by the employer | |
|---|---|---|
| Employee refusing to work their notice period | Pay to the employer a sum equal to half the wages that would be payable in respect of the period of notice that is not worked | Employee can request to be paid a sum equal to half the wages that would be payable in respect of the period of notice that is not worked. |
| Employer not allowing notice period to be worked | Pay to the employee a sum equal to the full wages that would be payable in respect of the period of notice that is not worked | Pay to the employee a sum equal to the full wages that would be payable in respect of the period of notice that is not worked |
Termination without notice or payment in lieu may be allowed if there is good and sufficient cause justifying immediate termination.
There are no statutory obligations for employers to pay severance under Maltese Law, though this may be separately regulated under a collective agreement or individual employment contracts.
Employment relationships are subject to a probationary period of 6 months unless the parties agree to a shorter period. A longer period of up to a year may apply to those who hold a technical, executive, administrative or managerial position and whose wages are at least double the national minimum wage.
For fixed-term employees, the probationary period must be established according to the terms agreed with respect to the duration of the contract of service, as follows:
| Duration of Contract of Employment | Probation Period |
|---|---|
| Less than 6 months | 1/3 of the contract duration |
| 6–7 months | 2 months |
| 8–10 months | 3 months |
| 11–13 months | 4 months |
| 14–15 months | 5 months |
| 16 months and over | 6 months |
During the probationary period, either party may terminate the employment relationship without specifying the reason of termination. However, for employees who have been continuously been employed by the employer for more than a month, a week's notice must be observed.
The normal hours of work for full-time employment and the maximum hours for part-time work vary according to the relevant sector of industry. These are established in the Wage Regulation Orders (WROs) that regulate such sectors according to their activity of work (also see L.N. 247 of 2003 - Organisation of Working Time Regulations).
Normal working hours for those not covered by a WRO is usually subject to a maximum of 40 hours per week. However, in certain cases as may be established by law, normal working hours can be more, but not exceeding a maximum of an average of 48 hours a week spread over a reference period of 17 weeks.
Employers can ask their employees to work more than an average of 48 hours per week, provided that there is a written consent from the employee.
| If consent is given | If consent is not given |
|---|---|
| Employer shall ensure that the employee is given the daily rest and weekly rest periods due as established by law. | Employer shall not force nor victimize that particular employee as a consequence of their refusal. |
| Employee can demand for their consent to be withdrawn. | The maximum working hours, including overtime, shall not exceed such an average when calculated over a reference period, usually of 17 weeks. |
Note: Depending on the business sector, the reference period for the averaging of normal working hours may also vary.
Where the working day is longer than 6 hours, the employee shall be entitled to not less than 15 minutes of rest, unless a longer period of rest is provided by any other regulation or agreement. The employer is not obliged to pay the rest break since it is not considered as working time.
Employees whose overtime rate is not covered by a WRO shall be paid at 150% of their normal rate for work carried out in excess of a 40 hours per week, averaged over a 4-week period or over the shift cycle at the discretion of the employer.
| Overtime agreed in pay packages | Right to refuse overtime |
|---|---|
|
Pay packages which include an unknown amount of overtime are generally not allowed since the employer is obligated to inform the employee of the normal rates of wages payable and the normal hours of work. However, contract of employment may, apart from specifying the basic wage, also contain a clause specifying that a fixed allowance is paid in respect of up to a certain number of hours worked in excess of the normal weekly working hours. Such overtime may exceed 8 hours per week, provided that the total working hours do not exceed 48 hours per week on average. |
An employee who chooses not to give their consent to work over an average of 48 hours a week cannot be asked to work beyond such an average. On the other hand, the employer can oblige an employee to work overtime as long as the total hours of work do not exceed an average of 48 hours a week or the employee has consented in writing to work over such an average. |
Employees are entitled to a minimum daily rest period of 11 consecutive hours and an uninterrupted weekly rest period of 24 hours within a 7-day period, or 48 consecutive hours in a period of 14 days.
As a general rule, the daily and weekly rest periods are compulsory. However, in certain circumstances specified by the law, there may be the possibility for an employee not to take the full rest period, provided that equivalent compensatory rest periods are given to the concerned employee at times immediately following the corresponding periods worked.
Note: No rest period can be substituted by monetary compensation. This practice is prohibited by law.
All full-time employees are generally entitled to public holidays with full pay, with a comprehensive overview of the entitlement being accessible here. There are 14 days of public holiday in Malta for 2025.
| Holiday | Date |
|---|---|
| New Year’s Day | January 1 |
| Feast of St. Paul's Shipwreck | February 10 |
| Feast of St. Joseph | March 19 |
| Freedom Day | March 31 |
| Good Friday | April 18 |
| Worker’s Day | May 1 |
| Sette Gugno | June 7 |
| Feast of St. Peter and Paul | June 29 |
| Feast of the Assumption | August 15 |
| Feast of Our Lady of Victories | September 8 |
| Independence Day | September 21 |
| Feast of Immaculate Conception | December 8 |
| Republic Day | December 13 |
| Christmas Day | December 25 |
Employees who have completed a full year of service are entitled to paid annual leave equivalent to 4 weeks and 32 hours. For example, those working a 40-hour working week shall be entitled to 192 hours of annual leave.
Where a national or public holiday falls on a Saturday, Sunday or weekly rest day to which a full-time employee is entitled to, the employee shall be entitled to an additional day of annual leave during that same calendar year in respect of each such overlap.
Annual leave starts to accumulate from the commencement of employment and it can be taken only in agreement between the contracting parties.
It is only possible to carry over up to 50% of the annual leave entitlement to the following year if there is an agreement with the employer. Leave days that have been carried over from the previous year shall be utilized first and may not be carried over again.
The law specifies that a minimum period equivalent to 4 weeks cannot be replaced by any allowance, except where the employee is terminated.
The amount of sick leave varies substantially according to the relevant WRO that regulates each specific sector of industry. Detailed information can be found in the DIER's Resource Pack.
Where the type of activity of work is not regulated by any WRO, the employee shall be entitled to 2 working weeks of paid sick leave per year.
Employees are entitled to 18 uninterrupted weeks of maternity leave, which shall be distributed as follows:
| Immediately after the date of confinement | Immediately before the expected date of confinement | For the employee to decide |
|---|---|---|
| 6 weeks | 4 weeks, unless otherwise agreed | The remaining weeks |
Employees are obligated to notify their employers in writing of the date of their intended leave at least 4 weeks in advance or as soon as practicable.
The first 14 weeks of maternity leave shall be paid by the employer, while the remaining leave may be covered by the provisions of the Social Security Act. Under the Maternity Leave Contribution scheme, employers will pay the maternity leave to their employees for the first 14 weeks and then apply for a refund from the Department of Social Security when the employee returns to work.
Note: This leave shall apply mutatis mutandis to employees who are adopting their child as adoption leave.
Employees are entitled to 10 working days of paid paternity leave, which shall be taken immediately after the birth of adoption of their child. This right shall not be subject to a period of work qualification or to a length of service qualification.
Employees with at least 12 months of continuous service are entitled to 4 months of parental leave to take care of their children until their children have reached 8 years of age.
Parental leave shall be paid per parent for a period of 2 months, or 8 weeks, at the same rate established for the sickness benefit under the Social Security Act and shall be granted in established periods of at least 2 weeks each. This shall be paid in accordance with the child's age, as follows:
| Child's age | Parental leave pay |
|---|---|
| Under 4 years old | 50% of entitlement will be paid (4 weeks) |
| At least 4 years old, but has not reached 6 years old | 25% of entitlement will be paid (2 weeks) |
| At least 6 years old, but has not reached 8 years old | 25% of entitlement will be paid (2 weeks) |
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Bereavement Leave | Paid | 1 working day |
This can be taken on the occasion of the death of a close family member, i.e. spouse, parent, child and sibling. An employee's entitlement to this leave my vary according to the relevant WRO that regulate their specific sector of industry. |
| Carer's Leave | Unpaid | 5 working days per year |
This leave can be taken to provide personal care or support for a serious medical reason to a relative or a person living in the employee's household. Medical proof shall be provided by the employee that the person cared for is suffering from an illness and is in need of care and support. |
| IVF Leave | Paid | 40 or 60 hours |
For prospective parents who receive medically assisted procreation—60 hours for the receiving parent and 40 hours for the non-receiving. A written request for this leave must be made 2 weeks in advance. The employee shall provide proof whether they are the receiving or the non-receiving person, and proof about the employment status of the other prospective parent. This leave shall only be granted up to a maximum of 3 processes |
| Jury Service Leave | Paid | - | Employees are allowed all the necessary time off to attend the court for their jury service. |
| Marriage Leave | Paid | 2 working days | An employee's entitlement to this leave my vary according to the relevant WRO that regulate their specific sector of industry. |
| Quarantine Leave | Paid | - |
This leave only applies to employees who have been ordered to quarantine by the relevant authorities. Those who are diagnosed with an illness should only take from their sick leave entitlement, which is not interchangeable with the quarantine leave. |
| Urgent Family Leave | Pay | 15 hours per year |
This can be taken for urgent family matters related to cases of sickness or accident to members of the immediate family of the employee. The hours of leave shall be deducted from the employee's annual leave entitlement. |
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