Employer of Record (EOR) Services in Malta

Employer of Record in Malta

Employ in Malta without an entity — capped social contributions, statutory bonuses, COLA and work permits handled by local specialists.

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Global Payroll Team

Subject Matter Expert

Published: 12 August 2025 Updated: 31 July 2026

Reviewed by: Stuart Phillips

Fact checked by: Mark Robbins

Why hire in Malta through an EOR

Malta’s employment costs are among the lowest in the EU — but the system has habits of its own: a government-mandated bonus paid quarterly, an annual cost-of-living adjustment, and leave that changes with the calendar. Through an EOR, all of it is already running.

No entity required

Employ staff in Malta, and 180+ other countries, without registering and maintaining a local subsidiary.

Capped costs, correctly applied

Social contributions are 10% each from employer and employee, capped at €55.93 per week in 2026 — we apply the caps, categories and Maternity Fund levy exactly.

The statutory bonus, on schedule

Every employee receives €512.52 a year in government-mandated bonuses across four instalments — paid automatically within our payroll, pro-rated where it should be.

Permits for non-EU talent

We sponsor single permits as the employer, and route eligible specialist roles through fast-track schemes like the Key Employee Initiative.

Working in days, not months

We register the employment with JobsPlus before day one — your hire can be compliantly working in Malta in days, while an entity setup would still be weeks from its first payslip.

Hire in Malta without setting up an entity

Malta punches well above its size for international employers: an English-speaking workforce, EU membership, and deep talent pools in iGaming, financial services and tech. Employment itself is refreshingly affordable — social contributions are capped at a fixed weekly amount rather than a percentage of the whole salary — but the system has quirks of its own: a statutory bonus paid in four instalments, annual cost-of-living adjustments applied every January, and leave entitlements that shift when public holidays land on weekends.

An Employer of Record clears all of it from your path: TopSource employs your Maltese hires through our established structure, with compliant contracts, the bonus and COLA applied without being asked, and permits handled for non-EU staff — no incorporation, no registrations, no learning curve.

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Calculate Your Employee Costs in Malta

Enter a gross salary to see the full monthly cost of a hire in Malta — capped social contributions and the statutory bonus included in your total spend per employee.

Employment Cost Calculator

*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expert

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How EOR in Malta works: the process through TopSource

Step 1

Confirm the role and structure

We agree the position, salary and benefits with you, check the applicable Wage Regulation Order for the sector, and confirm whether the hire is an EU national or needs a single permit.

Step 2

Issue a compliant contract

Your new hire receives an employment contract under the Employment and Industrial Relations Act, with probation, notice, leave and the statutory bonus entitlements clearly set out.

Step 3

Sponsor the permit, if needed

For non-EU hires we apply for the single permit as the employer — routing eligible specialist roles through the Key Employee Initiative — and build realistic processing times into the start date.

Step 4

Register and run payroll

We register the employment with JobsPlus before day one, then calculate salary, capped social contributions, FSS tax withholding and the quarterly bonus instalments each cycle — with the January COLA applied automatically.

Step 5

Support the relationship day to day

Your account manager and the employee both have a direct line to us for contract questions, leave balances — including the weekend-holiday adjustments — benefits and anything else that comes up.

Know your Malta hiring costs before you commit

Tell us the role and salary — we’ll send back the full Maltese employment cost, bonus and COLA included, within one business day.

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Employer Costs in Malta at a Glance

€ 55.93

Weekly cap on employer social security, 2026

€ 512.52

Statutory bonus per employee per year, paid quarterly

24

Statutory annual leave days, plus weekend-holiday compensation

Employer Costs in Malta Explained

Employers and employees in Malta each contribute 10% of the basic weekly wage to social security, capped at €55.93 per week each in 2026 — one of the lowest employment cost structures in the EU for professional salaries. Every full-time employee also receives a government-mandated statutory bonus of €512.52 per year on top of salary, and all wages carry an annual cost-of-living adjustment. Here’s the breakdown.

Class 1 contributions are paid equally: 10% of the basic weekly wage from the employer and 10% from the employee, each capped at €55.93 per week in 2026 for employees born from 1962 onwards — roughly €2,900 a year at most. Because the cap bites quickly, the marginal cost of senior salaries is far lower than in most of the EU. Employers also pay a 0.3% Maternity Fund levy, and contributions apply to basic wage only — bonuses and overtime sit outside the calculation.

Every full-time employee receives €512.52 a year in government-mandated bonuses, paid in four instalments at the end of March, June, September and December, pro-rated for part-timers and mid-year joiners. Separately, Malta applies an annual cost-of-living adjustment (COLA) to all salaries, announced with the national budget — payroll must apply it each January without being asked.

EU and EEA nationals work in Malta freely. Third-country nationals need a single permit combining residence and work authorisation, with fast-track routes — such as the Key Employee Initiative — for higher-paid specialist roles. Standard applications involve labour-market testing and take longer, which is exactly where an established local employer of record shortens timelines.

Statutory annual leave is 24 working days, and Malta adds compensation when any of its 14 public holidays fall on a weekend — so the true entitlement changes year to year and payroll needs to track it. Sick leave and special leave vary by sector Wage Regulation Order, a layer of detail generic global providers regularly miss. The national minimum wage is €229.44 per week in 2026 for adult employees.

EOR or entity setup: which one fits your Malta plan?

Incorporating in Malta is straightforward, but it still means company registration, tax and VAT numbers, a JobsPlus employer registration and ongoing filings — disproportionate overhead for a team of one to ten. An EOR makes sense while you’re testing the market or hiring a first small team, especially in fast-moving sectors like iGaming and fintech where waiting on incorporation costs you the candidate; your own entity usually wins once Maltese headcount and permanence justify the overhead.

Consider an EOR if you’re:

Hiring your first one to five people in Malta
Sponsoring a non-EU specialist without an established Maltese employer record
Still validating the market before committing capital to an entity
Working to a hiring deadline measured in weeks, not months

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Valletta skyline at sunset with the Carmelite dome, Malta

Why TopSource for Employing in Malta

TopSource for Employer of Record, global payroll or any other of our services represent a simpler, more reliable and transparent option.

We don’t hide fees or sneak price increases. We don’t lock you in for employees you don’t use. But we do give you a dedicated point of contact, available on the phone so you get answers fast — including on the questions Malta raises, from Wage Regulation Orders to this year’s COLA. We blend HR advisory with in-market expertise, and we stay flexible around the needs of your business.

EOR Services Malta Payroll

Valletta waterfront and cathedral, Malta

“Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.”

Director of Research Operations,

“Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.”

Chief Human Resources Officer,

“TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.”

Senior Manager, Human Resources ,

More than an Employer of Record.

Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets.

Market Selection Advisory

Compare available talent, compensation, additional costs and regulations across different countries

Salary Benchmarking

Identify and prioritize markets for growth based on talent, cost & regulations

Global Skills Analysis

Map skill availability by region to align talent strategies with business goals..

Talent Acquisition

Find, hire & onboard the highly skilled team members you need in each locality.

Talent Strategy Optimization

Optimize your talent strategy to enable your organization to achieve it’s global ambitions.

Global Benefits Review

Benchmark your global benefits to boost employee retention.

Frequently
asked questions

For most professional salaries: the capped 10% social contribution (maximum €55.93 per week in 2026, about €2,900 a year), the 0.3% Maternity Fund levy, and the €512.52 statutory bonus. Because the contribution is capped rather than percentage-based all the way up, total employment cost in Malta is among the lowest in the EU for senior roles.

It is a government-mandated payment of €512.52 per year for every full-time employee, paid in four instalments in March, June, September and December, pro-rated for part-time staff. It is taxable as normal income but no social security is deducted from it, and it sits on top of — not inside — the agreed salary.

Yes. Third-country nationals need a single permit, which we apply for and sponsor as the employer. Specialist and higher-salary roles can qualify for expedited treatment under schemes like the Key Employee Initiative; standard applications involve labour-market testing and take longer, so factor the route into your start-date planning.

The statutory base is 24 working days, but Malta compensates employees when public holidays fall on a Saturday or Sunday by adding the equivalent hours to the leave pool — so entitlement genuinely differs by calendar year. We calculate it annually within payroll so nothing is under- or over-granted.

iGaming and financial services dominate, followed by tech, maritime and corporate services. These sectors hire internationally and move fast — exactly the situation where waiting on incorporation, banking and JobsPlus registration costs you the candidate. An EOR closes that gap to days.

EOR wins on speed and simplicity: employees working in days, no registrations to unwind if plans change, and the bonus, COLA and caps handled without a local finance function. Your own entity wins on scale, once a Maltese team is large and permanent. Many clients run both in sequence — EOR to enter, entity once proven — and we transfer the team across when the time comes.