Basic information
Capital: Valletta
Time zone: GMT+1
Languages: Maltese and English
Currency code: EUR
Human Resources at a Glance
Contract Terms
The contract must be written in English. It must be in writing and signed by both parties.
The contract must include:
name
Start date
Employment period
Job description
Termination condition
Guidelines Regarding Probation Period/Trial Period
The probation period is mandatory. The minimum probation period is 3 months and the maximum probation period is 6 months. For administrative, technical, managerial or executive employees with an annual minimum wage twice higher than the annual minimum wage, the probationary period may be extended to 6 months and can be renewed for another 6 months (1 year in total).
Regulations and Rules Regarding Working Hours
Standard working hours are 8 hours a day and 40 hours a week. The standard work week runs from Monday to Friday. The maximum working week can be extended to 48 hours.
The maximum working hours covered by the part-time employment agreement is 48 hours, but the standard can be regarded as 40 hours. Working hours in excess of this period will be considered as overtime.
Overtime is paid according to the following rates
Overtime pay is mandatory. Hours worked outside the standard working hours are considered overtime. Employees may work up to 48 hours per week unless the employee provides written consent. For additional hours, employees will receive:
150% of the standard hourly wage for work from Monday to Saturday.
200% of the standard hourly wage for work on Sundays or public holidays
Minimum Wage Requirements
The minimum wage is 731.32 euros per month. The minimum wage varies according to the age of the employee. Employees are entitled to an annual cost of living adjustment as set out by the Maltese Government. For 2023, the increase is €514.80 for full-time employees and €386.10 for part-time employees.
Please note: Every year, the Maltese government calculates a cost of living adjustment. This is part of the annual budget and is calculated based on last year’s inflation figures. The cost of living for 2024 is adjusted to €12.81 per week.
Payroll Cost for Employers
The main cost is usually estimated to be about 10.30% of an employee’s salary. Government bonuses (associated with weekly allowances and statutory bonuses) will be added to this employer cost.
Social Security – 10%*
Maternity leave Trust Fund – 0.30%
Semi-annual government bonus: Weekly allowance, payable at the end of March and September respectively – €121.16
Semi-annual government bonus: statutory bonus, payable at the end of June and December respectively – €135.10
- The maximum Social Security contribution is calculated based on the employee’s weekly salary and the number of Mondays in the month. For employees earning more than 515.99 euros per week, social security contributions will be capped at 206.40 euros on four Mondays of the month and 258 euros on five Mondays of the month.
Termination
Grounds
Termination must comply with complex regulations and the rules of the country of employment. Dismissal is always handled by the employer with key stakeholders. This may include specific costs or necessary or recommended steps in a particular termination situation.
Firing in Malta can be complicated. In Malta, employers do not have the right to dismiss at will outside the probationary period, and dismissal must be justified.
Eligible terminations include:
Voluntary resignation of employee
Termination by mutual agreement
The employer unilaterally terminates on the following grounds:
Probation evaluation
Objective cause
Disciplinary dismissal
Poor performance due to inappropriate work
Expiration of contract
Notice Period
The minimum notice period is one week, increasing according to the length of the employment period.
One week if the service period is less than 6 months
If the service is less than 2 years, it is 2 weeks
If the service is less than 4 years, it is 4 weeks
If the service is less than 7 years, it is 8 weeks
After seven years, each additional year or part of the year of service is increased by an additional week, up to a maximum of twelve weeks
Severance compensation
In Malta, there is no requirement for employees to pay termination costs. During the notice period, the employee will receive the standard salary.
Payment & leave Compensation & Holidays
SalaryPayment
Once a month
Payslip Payroll
No explicit provision
Annual Leave
Full-time employees are entitled to 24 working days paid vacation. However, if a public holiday falls on a weekend, the employee is entitled to an extra day off.
In 2022, four public holidays fall on weekends, so employees in the current year are entitled to 28 days off.
Paid leave is accumulated on a monthly basis, 2 days per month, and employees are eligible to take annual leave after accumulating one month’s work.
Part-time employees are entitled to paid leave multiplied by the average number of hours worked per week by 24.
Sick Leave
Employees are entitled to up to 10 days (80 hours) of paid sick leave. The payment criteria and payers for this holiday vary according to its duration:
| period | payment | drawee |
| 0 – 3 days | 100% of your basic salary | employer |
| 4 – 10 days | 100% of your basic salary | Social security |
Maternity & Parental Leave
Employees are entitled to 4 months of parental leave. Both parents are entitled to this leave, which should be taken before the child reaches the age of 8 years. Either parent can take parental leave. Parental leave is unpaid.
Tax and Social Security Information
Employees are entitled to four months of parental leave. Both parents are entitled to this leave and should take it before the child reaches the age of 8. Both parents may choose to take parental leave. No pay is paid during parental leave.
Personal Income Tax
The individual income tax ranges from 0% to 35%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.
Single:
| Gross Annual Income | Tax Rate (%) |
| Up to EUR – 9,100 | 0% |
| Up to EUR – 14,500 | 15% |
| Up to EUR – 19,500 | 25% |
| Up to EUR – 60,000 | 30% |
| Over EUR – 60,000 | 35% |
Married:
| Gross Annual Income | Tax Rate (%) |
| Up to EUR – 12,700 | 0% |
| Up to EUR – 21,200 | 15% |
| Up to EUR – 28,700 | 25% |
| Up to EUR – 60,000 | 30% |
| Over EUR – 60,000 | 35% |
Parents:
| Gross Annual Income | Tax Rate (%) |
| Up to EUR – 10,500 | 0% |
| Up to EUR – 15,800 | 15% |
| Up to EUR – 21,200 | 25% |
| Up to EUR – 60,000 | 30% |
| Over EUR – 60,000 | 35% |
Social security
- Social Security
- Private Healthcare – Unisure (optional)
- Private Healthcare – Allianz (optional)
Public Holidays 2024
| holidays | date |
| New Year’s Day | 1.1 |
| Feast of St Paul’s Shipwreck | 2.10 |
| Feast of St Joseph | 3.19 |
| Good Friday | 3.29 |
| Freedom Day | 3.31 |
| Labour Day | 5.1 |
| Sette Giugno | 6.7 |
| Feast of St Peter and St Paul | 6.29 |
| Feast of the Assumption | 8.15 |
| Victory Day | 9.8 |
| Independence Day | 9.21 |
| Immaculate Conception | 12.8 |
| Republic Day | 12.13 |
| Christmas Day | 12.25 |
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