Employer of Record in Malta

General Information

• Currency: Euro (EUR)
• Employer Taxes: 10.00% or 49.97 EUR (flat rate per week)
• Payroll Frequency: Monthly
• Employee Costs: 10%
• Capital: Valetta
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: As of 2023, the national minimum wage for full-time employees in Malta is as follows: €192.73 per week for employees aged 18 and older, €185.95 per week for 17-year-olds, and €183.11 per week for those under 17.

For part-time employees, the minimum wage is calculated pro-rata based on the hourly rate of a comparable full-time employee, as outlined in the relevant Wage Regulation Order.

A full-time minimum wage worker in Malta who is at least 18 years old and earns €192.73 per week will receive a total of €10,021.96 in their first year. After one year of employment, minimum wage earners will see their income increase by at least €3.00 per week, and by €6.00 per week after their second year of work.

Payroll

Payroll Cycle: Salaries are paid monthly on 25th of the month.

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General: In Malta, a standard full-time workweek is 40 hours, typically divided into 8-hour days. According to the Wage Regulation Orders, the standard working hours are set at 40 hours per week, but employees should not exceed an average of 48 hours per week over a 17-week period.

Overtime: Overtime in Malta is governed by the Wage Regulation Order (WRO), which specifies different rules for various industries. Workers must provide written consent for overtime, which can be revoked at any time. If an employee is not covered by the WRO, overtime is paid at 150% of their regular hourly rate for hours worked beyond 40 in a week, averaged over a four-week period.

The income tax rate on qualifying overtime is 15% for amounts up to €10,000 in emoluments, rather than being limited to a maximum of 100 hours of overtime. Any overtime earnings above this threshold are subject to the standard income tax rates.

Leave

Annual Leave (Vacation):

Full-time employees working 40 hours per week are entitled to 24 working days of paid leave, with a pro-rata allocation for those not working full-time. According to the law, a minimum of four weeks of this leave cannot be substituted with any allowances, except in cases of employment termination.

Public Holidays

Public holidays falling on the weekend are added to the worker’s annual vacation allowance to be taken as days off in lieu.

Sick Days

Sick leave in Malta is governed by the Wage Regulation Order (WRO). For employees not covered by the WRO, the entitlement is two weeks (10 working days) of sick leave per year. After this period, employees may qualify for sickness benefits through Social Security. A medical certificate is required for all sick leave.

Maternity Leave

In Malta, maternity leave lasts for 18 weeks, beginning 4 weeks before the expected due date. Employees are required to take a minimum of 6 weeks off after giving birth. For the first 14 weeks, maternity benefit is paid at 100% of the regular salary by the employer, after which it is covered by Social Security.

Paternity Leave

There is no statutory paternity leave in Malta.

Parental Leave

Parents are entitled to four months of paid leave for the birth of a child, adoption, fostering, or general caregiving until the child turns 8. To qualify, employees must have been employed for a minimum of 12 consecutive months.

Other Leave

Depending on the terms of the collective agreement or employment contract, an employee may be eligible for additional types of leave, subject to mutual approval between the employer and employee. In Malta, employers are required to allow employees to take other statutory leave, including bereavement leave, marriage leave, parental leave, court witness leave, jury service leave, injury leave, and birth leave.

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