Country Guides

Malta

Quick Find

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Capital

Valletta

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Language

Maltese/ English

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Remote workers

25,000 - 30,000

payments

Currency

€ Euro (EUR)

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Working hours

40 hours per week

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Public holidays

14 per year

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Minimum weekly salary

€229.44

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Tax year

Jan 1 - Dec 31

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Date format

DD/MM/YYYY

Misclassification penalties

Misclassifying employees as independent contractors may result in fines, back payment of social security contributions, unpaid taxes, employee benefits, and possible legal claims from the worker.

Fun fact

Malta is one of the smallest countries in Europe but has three UNESCO World Heritage Sites, including the historic capital city of Valletta.

Employer contributions

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    Employer tax: 10.30%
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    Social security contributions: 10.30%, which includes maternity contribution and social insurance capped at €55.93 per week

Social security contributions: Social insurance

Contribution amount: 10%

Social security contributions: Maternity contribution

Contribution amount: 0.30%

Employee contributions

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    Social security: 10% capped at €6.62 (approx., depending on employee category)

Income tax

Gross income: €0 – €12,000

Tax rate: 0%

Gross income: €12,001 - €16,000

Tax rate: 15%

Gross income: €16,001 - €60,000

Tax rate: 25%

Gross income: €60,001 - and over

Tax rate: 35%

Employer of Record in Malta

What is an EOR?

An Employer of Record is the legal employer of a worker in Malta. As such, the Employer of Record takes care of all Malta compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

EOR responsibilities

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    Ensuring their employment is compliant with local employment laws
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    Processing local payroll
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    Filing employment related taxes and returns
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    Issuing payslips to the employee
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    Distributing salary payments

How it works

  • Company

    Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

  • Boundless

    Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

  • Employee

    The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.

Statutory benefits in Malta

  • Public health insurance

    In Malta, public healthcare is free for residents who contribute to social security. Others can pay for treatment or opt for private health insurance. There is no mandatory public health insurance for everyone.

  • Social Security

    Malta's social security provides pensions, healthcare, and other benefits to those who contribute. There's also basic assistance for low-income residents who haven't contributed enough

Non-mandatory benefits in Malta

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    Private Health Insurance
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    Flexible working hours
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    Remote or hybrid work
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    Training and development budgets
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    Performance bonuses
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    Extra paid leave
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    Wellness benefits - gym membership or wellness allowance
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    Relocation packages
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    Stock options/ Equity plan
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    Home office allowance
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Written employment contract

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Work flexibility

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Union membership

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Whistleblower protection

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Protection from discrimination

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Protection from harassment

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Data protection

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Pregnancy rights

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Paid annual leave

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Dismissal protection

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Pay transparency

Paid time off

24 days of paid vacation leave + 14 days of public holidays

Sick leave

10 working days of paid sick leave per year. A medical certificate is required.

Maternity leave

18 weeks, 4 weeks must be taken before the child's birth

Paternity leave

10 paid days of paternity leave that must be used within the first 15 days following childbirth

Parental leave

4 months until the child reaches the age of 8

Probation

The standard probation period is 6 months, and may be extended up to 12 months for technical, managerial, administrative, or executive roles if agreed in the employment contract.

Payment frequency

Wages should be paid at regular intervals not exceeding 4 weeks in arrears. Different pay periods can be agreed through a collective agreement. If the employer fails to pay the employee wages due, the employee can lodge a complaint at the Department of Industrial and Employment Relations.

Payday

Salaries are usually paid between the 25th and the 30th of the month.

Termination is regulated by the EIRA and overseen by the Department of Industrial and Employment Relations (DIER). DIER ensures procedures are fair and lawful and checks that employees receive the proper notice, wages and leave entitlements while providing assistance to both employers and employees on their rights and obligations.

FAQs

In Malta, there are four hiring options. You can run payroll from your HQ for short-term arrangements, engage contractors for project-based work, set up a local entity to hire directly, or partner with an Employer of Record. Each route carries different compliance, cost, and administrative effort. An EOR allows you to hire compliantly in Malta without setting up a local entity.

Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Malta, employment is the right structure under Maltese law, covering entitlements like paid annual leave, sick leave, and Social Security contributions. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Malta.

HR compliance in Malta means your policies and procedures respect all applicable Maltese employment laws and regulations. When you hire in Malta, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave (10 days), annual leave (24 days plus 14 public holidays), minimum wage (€229.44/week), tax credits, and a 40-hour working week. Following these is fundamental for running the business well.

An Employer of Record is the legal employer of the individual in Malta for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 18 weeks of maternity leave and 24 days of annual leave. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.

Boundless partners with employment lawyers and advisers in each country we operate in, including Malta. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

Both employers and employees in Malta pay social security contributions of 10% of weekly wages, capped at €55.93 weekly. Employers also pay a 0.3% maternity fund contribution. Employees pay progressive income tax of 0-35% depending on income and tax status. To get a clear overview of both employee and employer taxes, use the salary breakdown calculator.

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