Malta Employment Law & Compliance Guide for Employers
Key employment laws in Malta: what employers need to know
Employment in Malta is governed mainly by the Employment and Industrial Relations Act (Cap. 452) and its regulations, including sector Wage Regulation Orders, with Jobsplus, the Department for Industrial and Employment Relations (DIER) and Identità handling registration and permits. Foreign employers are often surprised by the statutory bonuses and weekly allowances paid four times a year, the cost-of-living adjustment (COLA) added to every wage each January, and the rule that only a Malta-registered employer can apply for a single permit. This page summarises the core employer rules with official sources.
Malta employment rules at a glance
| Topic | What the rule is | Official source |
|---|---|---|
| Minimum wage | National minimum wage for whole-time employees: €229.44 a week in 2026, about €5.74 an hour on a 40-hour week. The 2026 cost-of-living adjustment (COLA) is €4.66 a week. Sector Wage Regulation Orders may set higher minimums. | DIER – National Minimum Wage |
| Standard working hours | Normal week of 40 hours unless a Wage Regulation Order says otherwise. Average weekly working time, including overtime, may not exceed 48 hours without the employee's written consent, which can be withdrawn with at least 7 days' written notice. | DIER – Charter of employment conditions (2026) |
| Overtime pay | Where no Wage Regulation Order applies, hours above 40 a week (averaged over four weeks or the shift cycle) are paid at 1.5 times the normal hourly rate. Sector orders may set different overtime rules. | DIER – Charter of employment conditions (2026) |
| Paid annual leave | 192 hours (24 days) a year on a 40-hour week, plus one day for each public holiday that falls on a rest day; pro rata for other hours. In 2026 three holidays fall on a weekend, giving 216 hours. | DIER – Charter of employment conditions (2026) |
| Public holidays | 14 paid public and national holidays, including St Paul's Shipwreck (10 February), Freedom Day (31 March), Sette Giugno (7 June), Independence Day (21 September) and Republic Day (13 December). | DIER – National and Public Holidays |
| Sick leave | Where no Wage Regulation Order applies, two working weeks of paid sick leave a year, counted in hours (80 hours on a 40-hour week). Sector orders may set different entitlements. | DIER – Charter of employment conditions (2026) |
| Maternity and parental leave | 18 weeks maternity leave: the employer pays the first 14 weeks; the last 4 may be covered by Maternity Leave Benefit. Paternity leave: 10 days with pay. Parental leave: 4 months per parent until the child is 8, two months paid at sickness benefit rate. | DIER – Charter of employment conditions (2026) |
| Probation period | 6 months by default (shorter if agreed); up to 12 months for technical, executive, administrative or managerial roles paid at least double the minimum wage. After the first month of probation, one week's notice applies. | DIER – Charter of employment conditions (2026) |
| Notice period | By continuous service: 1 week (1–6 months), 2 weeks (6 months–2 years), 4 weeks (2–4 years), 8 weeks (4–7 years), then one more week per year up to 12 weeks after 10 years. | DIER – Charter of employment conditions (2026) |
| Severance pay | No statutory severance pay. On termination the employer pays notice money, untaken leave and pro-rata statutory bonuses. Unfair dismissal claims go to the Industrial Tribunal within 4 months. | DIER – Other rights on termination |
| Employer social contributions | Class 1 social security: 10% of the basic weekly wage, capped at €55.93 a week in 2026 for employees born from 1 January 1962 (€49.04 if born earlier), reached at about €29,084 a year. Employers also pay a small Maternity Leave Trust Fund contribution. | PwC Worldwide Tax Summaries – Malta, other taxes (official MTCA rate page not reachable) |
| Employee social contributions | Employees pay the same Class 1 rate as employers: 10% of the basic weekly wage, capped at €55.93 a week in 2026 (born on or after 1 January 1962). Deducted through payroll under the Final Settlement System (FSS). | PwC Worldwide Tax Summaries – Malta, individual other taxes |
| Income tax on salaries | Withheld each pay period under the Final Settlement System (FSS). 2026 single rates: 0% to €12,000, 15% to €16,000, 25% to €60,000 and 35% above. Married and parent rates have wider bands (married: 0% to €15,000). | MTCA – 2026 tax rates |
| Mandatory bonuses and 13th-month pay | Yes: a statutory bonus of €135.10 in June and December and a weekly allowance of €121.16 in March and September, €512.52 a year in total, pro rata for shorter service. No 13th-month pay is required. | DIER – Bonus and Weekly Allowances |
| Work permits for foreign nationals | Non-EU nationals need a single permit (combined work and residence permit) from Identità. Only a Malta-registered employer, registered with Jobsplus, can apply. The law allows 4 months; the average is about 2 months. Hospitality roles need an ITS Skills Pass. | Identità – Single permit processing period |
| Employment contract requirements | Give a written statement of the main terms within 7 days of the start date. Employers must register with Jobsplus and file an engagement form for each new employee and a termination form when employment ends. English or Maltese is normally used. | DIER – Charter of employment conditions (2026) |
Employer obligations in Malta, topic by topic
Filter by primary service relevance
Does a Maltese employment contract have to be in writing, and how long can probation last?
What are the normal working hours in Malta, and how is overtime paid?
What is Malta's minimum wage in 2026, and what are COLA and the statutory bonuses?
How much annual leave, sick leave and family leave must employers in Malta give?
What does an employee cost in Malta on top of salary, and how is income tax withheld?
How can an employer end employment in Malta, and what notice and compensation apply?
How do you hire a non-EU national in Malta, and what is the single permit?
Can you engage contractors in Malta instead of employees?
Key employment laws in Malta and official sources
- Employment and Industrial Relations Act (Cap. 452) — Main employment law: contracts, wages, notice, termination, Wage Regulation Orders and the Industrial Tribunal.
- Organisation of Working Time Regulations (S.L. 452.87) — 48-hour average weekly limit, rest periods, night work and annual leave.
- Employment Status National Standard Order (S.L. 452.108) — Eight-criteria test that presumes a self-employed person is an employee when five are met.
- Social Security Act (Cap. 318) — Class 1 contributions and benefits such as sickness, maternity and injury benefit.
- Income Tax Act (Cap. 123) — Income tax rates and taxation of employment income, withheld through the Final Settlement System.
- Employment and Training Services Act (Cap. 594) — Sets up Jobsplus and the employer duty to notify engagements and terminations.
- Immigration Act (Cap. 217) — Entry, residence and employment of non-Maltese nationals.
- Single Permit Regulations (S.L. 217.17) — Combined work and residence permit procedure for third-country nationals, including the 4-month decision period.
FAQs: hiring employees in Malta
Can a foreign company hire employees in Malta without a local entity?
Yes, with limits. A foreign company can register as an employer with Jobsplus and the Malta Tax and Customs Administration and run Maltese payroll, but it cannot file a standard single permit for non-EU staff unless it is registered and operating in Malta. Many companies use an Employer of Record, which employs the person locally and handles the contract, COLA, statutory bonuses, payroll, Jobsplus forms and permits.
How much does an employee cost in Malta on top of gross salary?
The main on-cost is the employer’s 10% Class 1 social security contribution on the basic wage, capped at €55.93 a week in 2026 (about €2,908 a year) for employees born from 1962, plus a small Maternity Leave Trust Fund contribution. Employers must also pay statutory bonuses and weekly allowances of €512.52 a year and the yearly COLA. On a €30,000 salary, statutory employer contributions are under 10%.
What is the minimum wage in Malta in 2026?
The national minimum wage for whole-time employees in 2026 is €229.44 a week, about €5.74 an hour on a 40-hour week, or roughly €11,930 a year. Employees also receive statutory bonuses and weekly allowances totalling €512.52 a year. The 2026 cost-of-living adjustment is €4.66 a week. Sector Wage Regulation Orders may set higher minimums.
How much notice and severance does an employer owe when dismissing an employee in Malta?
Notice depends on continuous service: 1 week after 1 month, 2 weeks after 6 months, 4 weeks after 2 years, 8 weeks after 4 years, then one more week per year up to 12 weeks after 10 years. There is no statutory severance pay, but the employer must pay notice money, untaken leave and pro-rata statutory bonuses. Unfair dismissal claims can be filed with the Industrial Tribunal within 4 months.
Can a company hire a foreign national in Malta, and what permit is needed?
Yes. EU, EEA and Swiss citizens can work without a permit. Other nationals need a single permit, a combined work and residence permit from Identità. The Malta-registered employer submits the application; the worker cannot apply alone. The law allows up to 4 months, with an average of about 2 months. Hospitality roles also need an ITS Skills Pass, and highly qualified staff may use routes such as the EU Blue Card.
Is it risky to engage contractors instead of employees in Malta?
Yes, if the arrangement looks like employment. Under the Employment Status National Standard Order, a self-employed person is presumed to be an employee when at least five of eight criteria are met, such as earning 75% of income from one client, following its schedule and using its tools. The client then owes employee rights such as the minimum wage, COLA, statutory bonuses, leave and notice.
Related NNRoad resources for Malta: Employer of Record in Malta · Payroll in Malta · Hiring foreign employees in Malta · Contractors and on-demand talent in Malta · Malta employer cost calculator
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