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Good to know
The tourism sector holds immense importance in Malta, and a significant portion of employment is tied to its seasonality, reaching its peak during the summer months when the island attracts a surge of tourists. Consequently, this leads to transient employment prospects, particularly within the sectors of hospitality and tourism-related services.
Currency
Euro (EUR)
Capital
Valetta
Employee Costs
10%
Local Language
Maltese, English
Employer Taxes
10%
Public Holidays
14 Days
Payroll Frequency
Monthly
Tax Year
1st Jan – 31st Dec
Are you ready to hire in Malta?
English and Maltese are both official languages in Malta, and English proficiency is widespread. This linguistic advantage simplifies communication, especially for English-speaking businesses. Malta is known to have a well-educated and skilled workforce, particularly in sectors such as finance, information technology, gaming, and tourism. The country has also earned a reputation for its pro-business environment, offering favorable tax incentives, a robust legal framework, and government support for foreign investors.
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Minimum Wage
In Malta, there are mandated minimum weekly wages for all employees, along with required incremental salary increases based on an employee’s length of service.
– Employees aged 18 and above must receive at least €181.08 per week (equivalent to €724.32 per month).
– For 17-year-old employees, the minimum weekly wage is €174.30 (€697.2 per month).
– Employees under 17 years old should receive a minimum of €171.46 per week (€685.84 per month).
Additionally, after completing one year of service with the same employer, an employee earning the minimum wage will be eligible for an increase of €3 per week, which will be added to their base pay. After the second year, this increment grows to €6 per week or a €24 bonus on their monthly paycheck. Similarly, employees earning more than the minimum wage will also receive comparable increases starting in their second and third years of continuous employment with the same employer.
Working Hours
Standard Working Hours
In Malta, a full-time work week consists of 40 hours per week, equivalent to 8 hours per day. According to the Wage Regulation Orders, the standard working hours are set at 40 hours per week, with an allowance for a maximum average of 48 hours a week over a period of 17 weeks. The standard working week is Monday – Friday.
Overtime
Any work exceeding the standard 40-hour work week qualifies as overtime and is subject to regulation through employment contracts or collective agreements.
Payroll
The typical payroll cycle in Malta is monthly, with most employers paying their employees on a monthly basis. This means that employees receive their wages once a month, usually at the end of the month or during the first few days of the following month. However, it’s essential to note that some companies may have different payroll cycles, such as bi-weekly or semi-monthly, but the monthly payroll cycle remains the most common in the country.
Leave
Paid time off
All employees are entitled to a minimum of four weeks paid annual leave.
Sick Pay
Employees who follow a 40-hour working week are entitled to 24 days of paid annual leave. Additionally, they receive an extra 8 hours for each public holiday that coincides with a weekend.
Maternity Leave
Employees who are expecting a child or have recently given birth have the right to take a 14-week leave period. The maternity benefit is paid at 100% of the regular rate of salary by the employer for the first 14 weeks and after that, paid by Social Security.
Paternity Leave
The labour regulations in Malta do not include paternity leave. However, numerous international employers offer additional benefits, such as parental leave policies, to assist partners and provide further support.
Termination
Termination of Employment
Fixed-term contracts can be terminated by employers based on specific grounds, business-related, personal, or instances of worker misconduct. The conclusion of such contracts necessitates both prior notice and a written rationale for the termination. In cases of misconduct, it is mandatory to provide a warning, affording the employee an opportunity to clarify their conduct. There is no mandated severance pay specified under Maltese labor law.
Notice Period
The notice period depends on the length of employment and reason for leaving. While in the probationary period, an employee who has worked for a minimum of 1 month may be terminated with a week’s notice. After this, the notice periods transition according to a progressive structure:
– For durations between 1 month and 6 months: A 1-week notice period
– 6 months to 2 years: A 2-week notice period
– Extending from 2 years to 4 years: A 4-week notice period
– Covering 4 years to 7 years: An 8-week notice period
– Extending beyond 7 years: An 8-week notice period, with an additional week for each subsequent year.
Probation Period
The probation period in Malta in most contracts is a minimum of 6 months.
Visa
Malta’s immigration regulations offer multiple avenues for employers seeking to hire foreign workers. The country’s affiliation with the European Union (EU) and the Schengen Area introduces diverse visa classifications. If you plan to visit Malta for a short period (up to 90 days within a 180-day period) for tourism, business, family visits, or similar reasons, you generally need to apply for a short-stay Schengen visa. This visa is valid for all Schengen countries, including Malta.
If you plan to stay in Malta for more than 90 days or intend to work, study, or reside there for an extended period, you’ll typically need to apply for a national long-stay visa or residence permit. The requirements and procedures for these visas can vary depending on your purpose of stay, such as work, study, family reunification, or retirement.
If you plan to work in Malta, you generally need to obtain a work permit along with a residence permit. Employers often play a role in assisting their foreign employees with the necessary permits.
VAT
The standard rate of VAT in Mata is 18.00%.
