Malta Employment Guide
Malta Employment Guide
Malta is a small island country in the central Mediterranean, with a strategic location connecting Europe, Africa and the Middle East. It has a population of approximately 500,000, and its economy is dominated by tourism, financial services, information technology, shipping and manufacturing. Valletta, the capital, serves as the political, economic and cultural center. Malta’s labor laws require employment contracts to be in writing, with a standard working week of 40 hours. Employers are obligated to guarantee the minimum wage, social insurance coverage and paid leave. Dismissals must comply with legal procedures and include corresponding compensation for employees. The country has a well-established labor relations system, is friendly to foreign-funded enterprises and multinational companies, and maintains an overall stable employment environment.
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Currency
Euro (EUR)
Capital
Valletta
Official language
Maltese and English
Salary Cycle
Monthly
Our Employment Guide in Malta
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Understanding Malta's Minimum Wage Structure
Malta maintains a statutory minimum wage of €731.32 per month, with variations possible based on employee age. All workers are entitled to the annual Cost of Living Adjustment (COLA) determined by the Maltese government.
The COLA is calculated annually as part of the national budget, reflecting inflation measurements from the previous year. For 2025, the COLA has been set at €5.24 per week, providing employees with additional financial protection against rising living costs.
Malta's Progressive Income Tax System
Malta employs a progressive income tax system with rates ranging from 0% to 35%. The applicable tax rate depends on multiple factors including marital status, number of dependents, and total annual income.
Tax Brackets for Single Individuals
| Annual Income Range | Tax Rate |
|---|---|
| Up to €9,100 | 0% |
| €9,101 - €14,500 | 15% |
| €14,501 - €19,500 | 25% |
| €19,501 - €60,000 | 30% |
| Above €60,000 | 35% |
Tax Brackets for Married Couples
| Annual Income Range | Tax Rate |
|---|---|
| Up to €12,700 | 0% |
| €12,701 - €21,200 | 15% |
| €21,201 - €28,700 | 25% |
| €28,701 - €60,000 | 30% |
| Above €60,000 | 35% |
Tax Brackets for Parents
| Annual Income Range | Tax Rate |
|---|---|
| Up to €10,500 | 0% |
| €10,501 - €15,800 | 15% |
| €15,801 - €21,200 | 25% |
| €21,201 - €60,000 | 30% |
| Above €60,000 | 35% |
Employer Cost Considerations in Malta
Employers should anticipate additional costs averaging approximately 10.30% above base salary. These mandatory contributions include social security and other statutory requirements.
- Social Security Contributions: 10%
- Maternity Trust Fund: 0.30%
- Semi-annual Government Allowance (March & September): €121.16
- Semi-annual Statutory Bonus (June & December): €135.10
Social security contributions are capped based on weekly earnings. For employees earning above €515.99 weekly, maximum contributions range from €206.40 to €258 monthly depending on the number of Mondays in the month.
Working Hours and Overtime Regulations
Malta's standard workweek consists of 40 hours, typically spread across Monday to Friday. The maximum allowable workweek extends to 48 hours, with any additional hours qualifying as overtime.
Overtime compensation is mandatory and calculated as follows:
- Weekday and Saturday overtime: 150% of regular hourly rate
- Sunday and public holiday work: 200% of regular hourly rate
Employees must provide written consent for work exceeding 48 hours per week, ensuring proper compensation for extended working periods.
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