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Public Holidays Calendar

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Malta 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Thursday Feb-10 Feast of Saint Paul's Shipwreck
Saturday Mar-19 Feast of Saint Joseph
Thursday Mar-31 Freedom Day
Friday Apr-15 Good Friday
Sunday May-1 Labor Day
Tuesday Jun-7 Sette Giugno
Wednesday Jun-29 Feast of Saints Peter and Paul
Monday Aug-15 Assumption of Mary
Thursday Sep-8 The Feast of Our Lady of Victories
Wednesday Sep-21 Independence Day
Thursday Dec-8 Feast of the Immaculate Conception
Tuesday Dec-13 Republic Day
Sunday Dec-25 Christmas Day
Countrypedia

Malta
Payroll and Benefits Guide

Last updated: May 08, 2022
Currency
Euro (EUR)
Payroll Frequency
Monthly
Employer Taxes
10.00% or 49.97 EUR (flat rate per week)

Papaya Offers Complete Payroll, PEO and Contractor Management Services For Malta

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Overview

Capital
Valetta
Currency
Euro (EUR)
Date Format
dd/mm/yyyy
Fiscal Year
1 January- 31 December
Public holidays calendar

Contributions

Employer

Employer Payroll Contributions

10.00%

10.00% Social Security up to annual salaries of 25,986.00 EUR

49.97 EUR (flat rate per week)

Social Security for annual salaries exceeding 25,986 EUR (providing the employee was born on or after 1.1.1962)

10.00% or 49.97 EUR (flat rate per week) Total Employment Cost

Employee

Employee Payroll Contributions

10.00%

Social Security up to annual salaries of 25,986.00 EUR

49.97 EUR (flat rate per week)

Social Security for annual salaries exceeding 25,986 EUR (providing the employee was born on or after 1.1.1962)

10.00% or 49.97 EUR (flat rate per week) Total Employee Cost

Employee

Employee Income Tax

Single resident taxpayers (or married couples opting for a separate computation)
0.00%

up to 9,100 EUR

15.00%

from 9,101 EUR to 14,500 EUR

25.00%

from 14,501 EUR to 19,500 EUR

25.00%

from 19,501 EUR to 60,000 EUR

35.00%

60,000.01 EUR and above

Employee

Employee Income Tax

Married resident taxpayers
0.00%

up to 12,700 EUR

15.00%

from 12,701 EUR to 21,200 EUR

25.00%

from 21,201 EUR to 28,700 EUR

25.00%

from 28,701 EUR to 60,000 EUR

35.00%

60,000.01 EUR and above

Employee

Employee Income Tax

Parent rates
0.00%

up to 10,500 EUR

15.00%

from 10,501 EUR to 15,800 EUR

25.00%

from 15,801 EUR to 21,200 EUR

25.00%

from 21,201 EUR to 60,000 EUR

35.00%

60,000.01 EUR and above

Minimum Wage

General

The national minimum wage for full-time employees is 182.83 EUR per week for an employee aged 18 and over, 176.05 EUR per week for an employee aged 17, and 173.21 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. 

Payroll

Payroll Cycle

Salaries are paid every 4 weeks on regular payment schedules.

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 or 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

Overtime is regulated by the Wage Regulation Order (WRO), which outlines different overtime rules by industry. If the WRO does not cover an employee, overtime is calculated at 150.00% of the regular pay rate of work over 40 hours per week and averaged over four weeks. 

The income tax rate applicable on qualifying overtime is 15%, up to a maximum amount of emoluments of 10,000 EUR rather than a maximum of 100 hours of overtime. Overtime emoluments exceeding this amount are taxable at the standard applicable rates of income tax. 

Working Week

Monday-Friday

Leave

Paid Time Off

Full-time employees who work 40 hours per week are entitled to 224 hours of paid annual leave, comprised of 192 hours of basic leave entitlement plus 32 hours for four public holidays that fall on a weekend.  (pro-rata for employees not working full-time hours).

The law stipulates that a minimum of four weeks cannot be replaced by any allowances, except where employment is terminated. 

Public Holidays

There are 14 public holidays.  

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 two weeks per year. After two weeks, an employee may be entitled to a sickness benefit through Social Security. 

The employee must provide a medical certificate for all sick leave. 

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 100.00% of the regular rate of salary by the employer for the first 14 weeks, after that, paid by Social Security.  

Paternity Leave

There is no statutory paternity leave in Malta.

Parental Leave

Parents are entitled to 4 months paid leave for the birth of a child, adoption, fostering, or general care until the child reaches the age of 8.

To be eligible, the employee must have been employed for at least 12 consecutive months.

Other Leave

Depending on the Collective Agreement/Employment Contract terms, an employee may be allowed additional leave types once approved between the employer and employee.  In Malta, the employer must let employees take other statutory leave, such as bereavement leave, marriage leave, parental leave, court witness leave, jury service leave, injury leave, and birth leave. 

Termination

Termination Process

Employers can terminate a fix term contract by giving the following reasons – business, personal, or workers misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given, and the employee gets a chance to explain their actions.   

In Malta, an employer can terminate an employee for just cause, redundancy, or due to reaching the age of retirement.  If requested by an employee who has completed at least one month of employment, the employer is obligated to provide an employment certificate stating dates employed and a description of duties (the reason for termination must also be included). 

Also, upon termination from employment, an employee has the right to claim financial compensation for any balance of outstanding leave that is due. 

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, 11 weeks’ notice is required 
  • For an employee with more than ten years’ service, 12 weeks’ notice is required 

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 50.00% of the wages that would have been earned during the notice period. 

Severance Pay

There are no statutory laws on severance pay.

Probation Period

The probation period is generally 12 months.  

VISA

VISA

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 authorisation. The Single Permit can be issued for one year and is renewable.​​ 

VAT

General

The standard rate of VAT in Mata is 18.00%.   

Version History

May 8, 2022
The national minimum wage for full-time employees is now 182.83 EUR per week for an employee aged 18 and over, 176.05 EUR per week for an employee aged 17, and 173.21 EUR per week for an employee aged under 17. 
Full-time employees who work 40 hours per week are now entitled to 224 hours of paid annual leave.
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Questions & Answers

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Macie L.
Macie L.
2 months ago

Is it possible to provide an employee with unlimited leave in Malta?

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