Payroll and Benefits Guide Malta
Last updated: Mar 03, 2026
Contribution
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Employer Payroll Contributions
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10.00%
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Social Security up to annual salaries of 27,679.00 EUR
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10.00%
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Total Employment Cost
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Employee Payroll Contributions
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10.00%
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Social Security up to annual salaries of 27,679.00 EUR
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10.00%
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Total Employee Cost*
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Employee Income Tax *
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Single resident taxpayers (or married couples opting for a separate computation)
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0.00%
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up to 12,000 EUR annually
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15.00%
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from 12,001 – 16,000 EUR annually
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25.00%
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from 16,001 – 60,000 EUR annually
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35.00%
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60,001 EUR and above annually
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Employee Income Tax *
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Married resident taxpayers
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0.00%
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up to 15,000 EUR annually
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15.00%
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from 15,001 – 23,000 EUR annually
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25.00%
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from 23,001 – 60,000 EUR annually
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35.00%
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60,001 EUR and above annually
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Employee Income Tax *
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Parent rates
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0.00%
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up to 13,000 EUR annually
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15.00%
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from 13,001 – 17,500 EUR annually
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25.00%
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from 17,501 – 60,000 EUR annually
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35.00%
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60,001 EUR and above annually
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Employer taxes
Employee taxes
Minimum Wage
General
The national minimum wage for full-time employees is 221.78 EUR per week for an employee aged 18 and over, 215.00 EUR per week for an employee aged 17, and 212.16 EUR per week for an employee aged under 17.
The national minimum wage for part-time employees is calculated pro-rata at the same hourly rate of a comparable full-time employee in accordance with the relevant Wage Regulation Order.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
Salaries are paid monthly on the last day of the month, unless otherwise stated in the employment contract.
13th Salary
There are no provisions in the law regarding 13th salaries.
Working Hours
General
A standard full-time workweek in Malta consists of 40 hours per week and 8 hours per day.
The standard working hours as stipulated in the Wage Regulation Orders are 40 hours per week but not exceeding a maximum of an average of 48 hours a week across a period of 17 weeks.
Overtime
The overtime regulations in Malta 🇲🇹 are primarily governed by the Organisation of Working Time Regulations (S.L. 452.87), the Overtime Regulations (S.L. 452.110), and specific Wage Regulation Orders (WROs) which apply to different sectors.1
| Aspect | Regulation Details |
| Standard Work Week | The typical full-time workweek is 40 hours. Overtime is triggered by work carried out in excess of the normal hours stipulated in the contract or the standard work week. |
| Maximum Average Weekly Hours | Total working time, including overtime, must not exceed an average of 48 hours per week. |
| Averaging Period | This average is calculated over a reference period, typically 4 consecutive months (or up to 12 months in specific sectors like manufacturing or tourism). |
| Right to Refuse/Opt-Out | Employees can voluntarily consent in writing to work more than the 48-hour average. This consent can be withdrawn by the employee with appropriate notice (minimum 7 days). |
| Employer Obligation | The employer can generally oblige an employee to work overtime, provided the total average hours do not exceed 48 hours per week (unless the employee has consented to opt-out). |
| Banking of Hours | Employers may introduce schemes to bank hours (up to 376 hours annually) where extra hours worked during busy periods are offset by reduced hours during quieter periods. These banked hours are paid at the normal hourly rate. |
Mandatory Overtime Pay Rates
The minimum premium rate for overtime is established by the Overtime Regulations for workers not covered by a sector-specific WRO.
| Day/Condition | Statutory Minimum Rate (If no WRO applies) | Total Pay Rate | Notes |
| Standard Overtime (Beyond 40 hrs/week) | 1.5 times the normal rate. | 150% | This is the default minimum rate for overtime on working days. |
| Sunday or Public Holiday | 2 times the normal rate. | 200% | This is a common rate stipulated in many Wage Regulation Orders (WROs) for work on Sundays and customary holidays. |
Sector-Specific Rates (WROs):
For many sectors (e.g., catering, retail, construction, travel), the minimum overtime rates are set by the applicable WRO and often include a mandatory 3$200\%$ (double time) premium for work on Sundays and public holidays.4
Other Mandatory Working Time Rules
| Aspect | Minimum Requirement |
| Daily Rest | 11 consecutive hours of rest per 24-hour period. |
| Weekly Rest | 24 consecutive hours of rest per 7-day period (or 48 hours over 14 days). |
| In-Work Break | Minimum rest break of 15 minutes if working more than 6 continuous hours. |
| Night Work | Average working time for night workers must not exceed 8 hours per 24-hour period (including overtime). |
Leave
Annual Leave (vacation)
Full-time employees who work 40 hours per week are entitled to 24 working days of paid leave (pro-rata for employees not working full-time hours). Regular salary is paid during these days off.
The law stipulates that a minimum of four weeks cannot be replaced by any allowances, except where employment is terminated.
PTO carryover
In Malta, statutory annual leave cannot be forfeited. Leave is meant to be taken in the year it’s earned, but unused statutory leave may be carried over if it couldn’t be taken (e.g., employer reasons or protected absences). A blanket “use-it-or-lose-it” policy is not lawful, and unused leave must be paid out on 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. Under certain set ups it might be moved to the next working day.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 10 February 2026 | Tuesday | Feast of St. Paul’s Shipwreck | Standard holiday |
| 19 March 2026 | Thursday | Feast of St. Joseph | Standard holiday |
| 31 March 2026 | Tuesday | Freedom Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 1 May 2026 | Friday | Workers’ Day | Standard holiday |
| 7 June 2026 | Sunday | Sette Giugno | Standard holiday |
| 29 June 2026 | Monday | Feast of Saints Peter and Paul | Standard holiday |
| 15 August 2026 | Saturday | Feast of the Assumption | Standard holiday |
| 8 September 2026 | Tuesday | Feast of Our Lady of Victories | Standard holiday |
| 21 September 2026 | Monday | Independence Day | Standard holiday |
| 8 December 2026 | Tuesday | Feast of the Immaculate Conception | Standard holiday |
| 13 December 2026 | Sunday | Republic Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
Sick leave is regulated under the Wage Regulation Order (WRO). When the WRO does not cover an employee, the sick leave entitlement is 2 weeks (10 working days) per year at full pay from the employer. After two weeks, an employee may be entitled to a sickness benefit through Social Security.
The employee should report absence within a day of sickness and must provide a medical certificate.
Maternity Leave
Maternity leave in Malta is 18 weeks and starts 4 weeks before the expected due date and an employee must take a minimum of 6 weeks after the birth.
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
10 working days, paid at regular salary.
Parental Leave
Parents are entitled to up to 4 months of leave following the birth of a child, adoption, fostering, or general child care until the child reaches the age of 8. This leave is usually unpaid.
To be eligible, the employee must have been employed for at least 12 consecutive months.
Other Leave
Employers must let employees take other special leave with pay for a period of time deemed reasonable. This includes, bereavement leave, court witness leave and jury service leave.
Certain Collective Agreements/Employment Contract might regulate for additional leave types to be given.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
In Malta, the recommended route for employment termination is through a Mutual Termination Agreement (MTA). This is because dismissals for “good and sufficient cause” require the employer to provide substantial proof justifying the dismissal. For instance, in cases of poor performance, the employer must demonstrate all elements proving the employee’s poor performance, such as objectives given, clear policies/instructions, efforts to help the employee improve, and the implementation of a performance improvement plan. Without this, a tribunal may consider the dismissal unfair and could award compensation to the employee, with no minimum or maximum cap on the award. Building a strong case for dismissals due to poor performance can be a lengthy process, taking approximately 3 to 6 months.
Another “good and sufficient cause” for termination is redundancy, which is complex in Malta. If an employee is terminated due to redundancy, they are entitled to re-employment if their former position becomes available within a year from the termination date. Employers must follow the “last in, first out” principle when terminating employment on redundancy grounds.
If requested by an employee who has completed at least one month of employment, the employer is obligated to provide an employment certificate stating the dates employed and a description of duties.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Wages must be paid at regular intervals not exceeding four weeks in arrears (i.e., monthly at most) unless agreed otherwise by contract or collective agreement. | On termination, the employee is entitled to all outstanding wages, overtime, leave, bonuses etc “as at date of termination”. | Wages must be paid in money (legal tender) and payment by bank transfer or cheque to bank account is permitted; the statute does not clearly mandate payment only via bank account in all circumstances. |
Notice Period
The amount of notice required is dependent on the length of service and reason for termination, as follows:
- If an employee has less than one month of service, no notice period is required
- For an employee with between one and six months of service, one week of notice is required
- For an employee with between six months and two years’ service, two weeks’ notice is required
- For an employee with between two- and four years’ service, four weeks’ notice is required
- For an employee with between four- and seven years’ service, eight weeks’ notice is required
- For an employee with between seven- and eight years’ service, nine weeks’ notice is required
- For an employee with between eight- and nine years of service, ten weeks’ notice is required
- For an employee with between nine- and ten years’ service, eleven weeks’ notice is required
- For an employee with more than ten years’ service, twelve weeks’ notice is required
- During Probation – one week notice applies if the length of service is longer than one month.
It is possible to pay the employee in lieu of notice. However, suppose an employee is due to work the notice and chooses not to work during this period or resign without notice; in that case, they are obligated to pay the employer 50% of the wages that would have been earned during the notice period.
An employee who fails to give notice will be liable to pay the employer a sum equal to half the wages that would have been due in respect of the notice period.
Severance Pay
There are no statutory laws on severance pay beyond pay out of owed salary and benefits.
In cases where a Fixed Term contract is being terminated early, a compensation payment is required, set at 50% of the salary due for the remaining period of the contract.
Probation Period
Employees holding technical, executive, administrative, or managerial positions whose wages are at least double the national minimum wage can be on probation for a period of up to twelve months.
Probation periods for Fixed Term contracts are as follows (unless the parties agree to a shorter probation period):
- For Employment contract of less than 6 months – Probation Period: One-third (1/3) of the duration of the contract of service
- For Employment contract of 6 to 7 months – Probation Period: 2 months
- For Employment contract of 8 to 10 months – Probation Period: 3 months
- For Employment contract of 11 to 13 months – Probation Period: 4 months
- For Employment contract of 14 to 15 months – Probation Period: 5 months
- For Employment contract of 16 months and over – Probation Period: 6 months
Immigration
Malta’s immigration law provides several options for employers of foreign nationals. Malta is a member of the European Union (EU) and the Schengen Area. Requirements, processing times, employment eligibility, and benefits for accompanying family members vary by visa classification.
Business visitors to Malta typically use a local version of the Schengen C Visa unless they are visa exempt based on their nationality. The Schengen Area limits stay to 90 days within 180 days.
For work, foreign nationals traveling to Malta require a Single Permit, which combines work and residence authorization. The Single Permit can be issued for one year and is renewable.
VAT
General
The standard rate of VAT in Mata is 18%.
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Payroll and Benefits Guide
in Malta
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 10 February 2026 | Tuesday | Feast of St. Paul’s Shipwreck | Standard holiday |
| 19 March 2026 | Thursday | Feast of St. Joseph | Standard holiday |
| 31 March 2026 | Tuesday | Freedom Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 1 May 2026 | Friday | Workers’ Day | Standard holiday |
| 7 June 2026 | Sunday | Sette Giugno | Standard holiday |
| 29 June 2026 | Monday | Feast of Saints Peter and Paul | Standard holiday |
| 15 August 2026 | Saturday | Feast of the Assumption | Standard holiday |
| 8 September 2026 | Tuesday | Feast of Our Lady of Victories | Standard holiday |
| 21 September 2026 | Monday | Independence Day | Standard holiday |
| 8 December 2026 | Tuesday | Feast of the Immaculate Conception | Standard holiday |
| 13 December 2026 | Sunday | Republic Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Is it possible to provide an employee with unlimited leave in Malta?
Unfortunately, Malta does not allow employers to provide this benefit.
How much tax do you have to pay in Malta over bonuses e.g. 13th month?
There are no 13 salaries in Malta. Typically bonuses will be taxed as salary is.
How does milaege reimbursement work for business trips with private car?
Is there a fixed tax-free amount per kilometre?
Does Malta have fixed tax-free per diem travel allowance rates?
The rate of payment for each kilometre travelled does not exceed 35 cents per kilometre tax free.
• payments only cover the business use element,
• all reimbursable travel is recorded in a logbook readily available at any time for verification.
• the log book is retained by the employer for at least 6 years.
How many Sick leaves are entitled to gaming companies’ employees?
We don’t have specific information for the gaming sector, you should check this with a local legal/HR advisor. In Malta, sick leave is regulated under the Wage Regulation Order (WRO), those not aligned to an WRO are entitled to at least 10 working days (2 weeks) of paid sick leave per year for full time workers.
As an international students how much is the least pay he or she can earn per month even doing the least job base on 20hrs per week job
The monthly minimum wage in Malta is 5.54 EUR per hour (around 443 EUR per month).