Malta Employee Compensation Regulations: A Comprehensive Guide for International Employers

Minimum Wage Requirements in Malta

In 2024, Malta's national minimum wage for full-time employees stands at €213.54 per week. The Maltese government has established different wage thresholds based on employee age, with reduced rates applicable to workers under 18 years old.

It's important to note that certain industries operate under Wage Regulation Orders (WROs) that may set higher minimum wage levels than the national standard. When applicable, these sector-specific regulations take precedence over the general minimum wage framework.

Looking ahead, Malta's 2025 budget proposal includes an increase to €221.78 per week effective January 1, 2025, demonstrating the country's commitment to maintaining fair compensation standards.

Employee Age	Weekly Minimum Wage
18 years and above	€213.54
17 years	€206.76
16 years and below	€203.92

Payroll Frequency and Distribution

Malta's employment regulations require employers to clearly specify payment dates in employment contracts. While monthly payments represent the standard practice, collective bargaining agreements may establish alternative schedules. Employers must ensure wage payments occur at least every four weeks, with delayed payments subject to employee complaints to the Department of Industrial and Employment Relations (DIER).

Unlike some European countries, Malta does not mandate thirteenth-month salary payments, though many companies offer this as part of competitive compensation packages.

Payslip Requirements and Best Practices

Malta's Itemized Payslip Regulations establish comprehensive requirements for wage documentation. Employers must provide detailed payslips with each payment cycle, ensuring transparency in compensation calculations. Key mandatory elements include:

Employer identification details and registered address
Employee name and position
Covered pay period with clear overtime and leave tracking
Regular working hours including weekends and public holidays
Overtime calculations at standard premium rates
Detailed breakdown of base salary, bonuses, and allowances
Comprehensive deduction information including tax and social security

For international companies operating in Malta, SailGlobal recommends supplementing these legal requirements with additional information such as probation period earnings, applicable tax rates, and employer identification numbers to ensure full compliance and transparency.

Payroll Management Options for Foreign Employers

Companies expanding into Malta face several payroll administration choices:

Establishing a local entity with dedicated payroll staff requires significant investment in understanding Maltese tax and employment legislation
Partnering with specialized providers like SailGlobal offers streamlined compliance with local regulations without establishing physical presence

Common Compliance Risks and Penalties

International employers should be aware of several key compliance areas where violations carry significant penalties:

Contract violations: Fines up to €2,329.37 and potential imprisonment
Working time infringements: Minimum €465.87 penalties
Payslip non-compliance: €500-1,165 fines
Minor employment violations: Minimum €582.34 penalties with daily additional fines
Irregular migrant employment: €2,000-5,000 fines and potential license suspension
Unfair dismissal: Compensation based on service length and damages
Collective redundancy violations: Minimum €1,164.69 penalties

Mandatory Bonus Structure

Malta operates a unique mandatory bonus system comprising two distinct components:

Bonus Type	Accrual Period	Payment Date	Full Amount
Weekly Allowance (SPBO)	October-March	March	€121.16
Statutory Bonus (6MBO)	January-June	June 15-30	€135.10
Weekly Allowance (SPBO)	April-September	September	€121.16
Statutory Bonus (6MBO)	July-December	December 15-23	€135.10

These bonuses accrue continuously, with pro-rated calculations for part-time employees and those with interrupted service. Paid leave periods count toward bonus accrual, while unpaid leave reduces entitlement.

Industry Salary Benchmarks

Understanding market compensation rates helps international employers develop competitive packages:

Industry Sector	National Sales Director	Sales Manager	Sales Representative
Energy Sector	€60,000-80,000	€40,000-60,000	€30,000-45,000
Medical Devices	€65,000-85,000	€45,000-65,000	€32,000-48,000
SaaS Industry	€70,000-90,000	€50,000-70,000	€35,000-50,000
Internet Technology	€65,000-85,000	€45,000-65,000	€30,000-45,000

These figures represent market ranges based on recruitment data and should be adjusted for specific roles and experience levels.

Malta Employee Compensation Guide 2024: Minimum Wage, Bonuses & Payroll Regulations