Employing in Malta

Malta, a Mediterranean gem, offers an enticing environment for expanding businesses with its robust economy, strategic geographical location, and a multilingual workforce. The country's appeal is further enhanced by its strong legal and financial structures and membership in the European Union. 

TopSource Worldwide facilitates seamless employment processes in Malta, ensuring compliance with local labour laws and regulations. Our expertise in global EOR, payroll and HR solutions equips businesses to effectively leverage Malta's dynamic market and skilled human capital, streamlining the employment process for a smooth expansion.

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Our Expertise

Managing a global workforce in Malta

Effectively managing a workforce in Malta requires a comprehensive understanding of its diverse employment landscape, which includes a harmonious blend of traditional and modern labour practices. TopSource Worldwide provides invaluable assistance in managing this complexity, offering tailored EOR, HR and payroll solutions aligned with Malta's employment laws

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Extensive expertise

Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.

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Entity-free employment

Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.

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Payroll without hassle

Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success. 

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Always-on support

Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.

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Global Employee Cost Calculator

Estimate the cost of your new hire with our calculator. Simply enter their location and salary information in to this handy tool to see what will be spent in employment costs each month.

TESTIMONIALS

Hear from our clients about our EOR solutions in Malta

"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."

Annette van Duijnhoven
Nutreco

”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."

Praveen Lihinar
Sungard

”TopSource Worldwide has a detailed and methodical onboarding process that made it easy for us to get set up and running with our UK employees. They were able to take the worry out of trying to comply with all local laws and regulations. Because they have this knowledge we do not have to research on our own and hope we are in compliance. This has saved us hours of time and gives both the company and employees a sense of security."

Supervisor
Client based in Ft Worth, Texas, USA
GLOBAL EXPANSION STRATEGY

Personalised Employer of Record services in Malta

TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in Malta. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Malta-based employees.

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End-to-end Malta payroll services

Looking to expand into Malta? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Malta expansion initiatives.

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Global entity management

Venturing into the Maltese market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.

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Accounting

Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.

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Global EOR services

Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.

Global Expansion Simplified

How to do business in Malta

Entering the Maltese market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.

TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in Malta.

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Malta Insights

Key insights into Malta's landscape

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VAT rates: Malta has a standard Value Added Tax (VAT) rate of 18%, with reduced rates of 7% and 5% for specific goods and services.

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Ease of Doing Business rank: Malta ranks 78th in the World Bank's Ease of Doing Business Index, indicating a moderately favourable business environment.

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Consumer Confidence Index: Consumer Confidence in Malta increased to -12.20 points in 2024 from -12.60 points in 2023.

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Employee maternity/paternity leave: Maternity leave is 14 weeks, and paternity leave is 2 days, with additional parental leave options to support work-life balance for new parents.

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Employee termination period: Standard notice for termination varies but is typically one week to one month, depending on employment contract terms and length.

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Employee salary pay date: Salaries should be paid in twelve equal instalments not exceeding four weeks in arrears.

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Bank holidays: Malta observes around 12 public holidays a year, including Feast of St. Paul's Shipwreck, Freedom Day, Workers' Day, Sette Giugno (Independence Day) and Christmas.

An Overview of Employing in Malta

Salary currency

Euros (€)

Salary pay date

Salaries should be paid in twelve equal instalments not exceeding four weeks in arrears.

Salary

The national minimum wage in Malta is 181.08 EUR (2021).

Malta observes an equal rate of pay for all employees who perform the same duties. Should an employer implement a pay scale to honour length of service or annual increments they should set a maximum that is achieved within a specified time period.

Employees are entitled to a weekly allowance payment of 121.16 EUR, payable in March and September.

Additionally, Malta observes an obligatory cost of living increase. A full-time employee is entitled to the full amount and a part-time employee should receive a pro-rata payment.

Bonus

All employees are entitled to a statutory bonus of 135.10 EUR payable every six months (at the end of June and from 15th to 23rd December.

Any additional bonuses the employee may be entitled to should be outlined in the contract of employment and must be approved. Bonus payments will be paid alongside the monthly salary and are subject to income tax.

Social Security System

All persons in employment are required to pay Social Security contributions in accordance with the Social Security Act to cover the welfare benefits system and public healthcare.

Both the employee and employer contribute 10% of the employee’s monthly income (before tax) to the Social Security Fund. Contributions are capped on a maximum weekly salary of 485.74 EUR (2021).

Healthcare

Malta has a public healthcare system that is free at the point of use in state-owned clinics and hospitals. This is accessible to any person who meets the requirements of the Maltese Social Security system and is funded by taxes.

Private healthcare options are additionally available across the island.
Dental care is predominantly privatized, with the exception of minor emergency treatment.

Employers’ Costs

Gross annual salary
Social Security contribution
Up to 25,258.00 EUR
10%
Exceeding 25,258.00 EUR
48.57 EUR (flat rate)

An Overview of the Main Statutory Benefits

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Pension

Malta operates a Contributory Retirement Pension funded through Social Security contributions. The main pension scheme is the ‘Two-thirds pension’, which aims to provide a maximum pensionable income equivalent to two-thirds of the employee’s salary prior to retirement. Pension rates vary dependent on average contributions.

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Sickness

Employees are entitled to 10 days of sick leave per annum at full pay. The employer is liable to pay the first three days of any claim for sick leave. From the fourth day of incapacity, an employee may claim sickness benefits through the Social Security system.

A medical certificate must be presented to the employer.

Maternity & Paternity Leave

A pregnant employee is entitled to eighteen weeks of uninterrupted maternity leave. Six weeks of this leave must be taken following the birth of a child.

For the first fourteen weeks, full wages should be paid by the employer. The subsequent four weeks are considered optional and are unpaid by the employer. The employee may be entitled to Maternity Leave Benefit funded through Social Security contributions.

The employee is required to inform the employer in writing at least four weeks prior to the commencement of leave.

A parent can apply for four months’ unpaid leave until their child is eight years of age following 12 months of continuous service.

Employees are exempt from working overtime if they are pregnant or within 12 months of the birth or adoption of a child.

Contractual Provisions

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Contract of employment

A contract of employment can be oral or written in either Maltese or English. Contracts can be indefinite or fixed-term (up to a maximum of four years).

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Probationary Period

The probationary period can be up to 12 months. For any service longer than one month, a one-week notice period applies upon termination.

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Working Hours

Normal working hours are 40 per week. Working hours should not exceed 48 hours when averaged over a 17-week period.

Employers are obliged to record the number of hours worked by their employees.

In Malta, working hours are strictly regulated and many job sectors have overtime rates stipulated by the Wage Regulation Order. All other employment categories should honour a pay rate of 1.5 times the employee’s hourly rate for hours worked in excess of a 40-hour week, averaged over a period of four weeks.

The contract of employment may specify a clause for overtime allowance.

Inclusive of overtime, an employee should not exceed the 48-hour maximum average working hours.

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Additional Leave
  • Urgent Leave: An employee is entitled to a total of fifteen hours of paid ‘Urgent Leave’ per annum. This is for any case related to the sickness or accidents of any immediate family member. This leave is to be deducted from the employee’s annual leave entitlement.
  • Marriage Leave: Employees are entitled to two paid working days as marriage leave

Termination

Indefinite term contracts may be terminated by: good and sufficient cause or mutual agreement.

In the case of a fixed-term contract, a compensation payment of 50% of the salary due for the remaining period of the contract. All outstanding wages should be paid by the next pay date.

In the case of redundancy, an employer is legally obliged to re-engage an employee if the post becomes available within a period one year.

 

Notice Period

Continuous Length of Service
Notice Period
1 month to 6 months
One week
6 months to 2 years
2 weeks
2 years to 4 years
4 weeks
4 years to 7 years
8 weeks
More than 7 years up to 8 years
9 weeks
More than 8 years up to 9 years
10 weeks
More than 9 years up to 10 years
11 weeks
More than 10 years
12 weeks

*The Maltese Employment Code states that longer periods may be agreed in the case of technical, administrative, executive or managerial posts; however, this must be agreed by both the employer and employee. An established period cannot be extended.

*If employment is terminated during the probationary period, a notice period of one week should be given for all service exceeding one month.

  • Upon notice of termination from the employer, an employee may choose to cease working before the period of notice. In this case, the employer is obliged to pay a sum equal to the half the wages respective of the unexpired notice period. Should an employer prevent an employee from performing work during their notice period, they are obliged to pay the full wages of the respective notice period.

  • Upon giving notice, should an employee fail to work their given notice period, they are liable to pay the employer a sum equal to half the wages that would have been earned during their notice period

  • Employment can be terminated without giving notice where there is considered good and sufficient cause (e.g., disciplinary action, ill health).
 
 

Holiday Entitlement

An employee is entitled to a minimum of 24 days holiday, to be outlined in the contract.
Holiday entitlement begins from the commencement of employment and runs in accordance with the calendar year. Where an employee is in employment for less than one calendar year, they are entitled to a proportionate amount of annual leave.

Employees may carry forward up to 50 per cent of their annual leave entitlement to the following calendar year, if agreed with the employer.

A minimum period equivalent to four weeks cannot be replaced by any allowances, except in the case of termination. Upon termination, any outstanding leave due should be compensated financially.

Public Holidays

Malta observes 14 holiday days: nine public holidays and five national days per annum. Should a public holiday fall on a weekend, the employee is entitled to an additional day in lieu.
Date
Holiday
New Year’s Day
1st January
Feast of St. Paul’s Shipwreck
10th February
Feast of St. Joseph
19th March
Freedom Day
31st March
Good Friday
In accordance with Western Calendar
Workers’ Day
1st May
Sette Giugno
7th June
Feast of St. Peter and St. Paul
29th June
Feast of the Assumption
15th August
Victory Day
8th September
Independence Day
21st September
Immaculate Conception
8th December
Republic Day
13th December
Christmas Day
25th December

Employ and pay anywhere

Specialising in multi-country payroll solutions

TopSource Worldwide offers comprehensive payroll outsourcing services, ensuring seamless and accurate management of your organisation's payroll functions. With cutting-edge technology and a team of experienced professionals, we handle payroll processing, tax compliance, and regulatory requirements with precision.

Calculate Your Employer of Record Taxes in Seconds

Employment Cost Calculator in Malta

Our Employment Cost Calculator simplifies complex tax calculations for global businesses. Accurately assess tax obligations, ensuring compliance with local regulations. Streamline payroll management effortlessly with our user-friendly tool, providing transparency and efficiency in international workforce taxation.

In addition to calculating your EOR taxes, our calculator can also help you:

  • Understand the different types of EOR taxes
  • Stay up-to-date on the latest changes to EOR tax regulations
  • Avoid penalties for non-compliance

Employer of Record FAQ

Frequently Asked Questions about Maltese employment solutions

What is an Employer of Record in Malta?

An Employer of Record (EOR) is a professional services provider that assumes the responsibility of being the legal employer for a company's workforce in Malta. This entails managing tasks such as payroll processing, tax withholding, benefits administration, and ensuring compliance with local labour laws and regulations.

How do global employment services work?

Global employment services operate as a comprehensive solution for businesses seeking to expand their workforce across borders. These services, often provided by Employer of Record (EOR) companies like TopSource Worldwide, streamline the complexities of international employment.

What are the benefits of working with an Employer of Record in Malta?

Employer of Record companies assume the legal responsibilities associated with employment, alleviating the burden of compliance, payroll, and HR management in Malta. This allows companies to expand globally without the complexities of establishing legal entities in each location.

What is the difference between EOR & PEO?

An EOR acts as the legal employer, handling tasks like payroll, tax compliance, and benefits administration. This allows companies to expand internationally without establishing legal entities. On the other hand, a PEO shares employer responsibilities with the client company, often co-employing workers.

How are employer payroll taxes calculated in Malta?

Calculating employer payroll taxes involves understanding the various taxes associated with employing workers and complying with tax regulations in Malta. Key components include federal and state income taxes, Social Security, Medicare, and unemployment taxes.

What global employment solutions does TopSource offer?

TopSource Worldwide facilitates hassle-free global expansion by acting as the legal employer, handling payroll, tax obligations, and HR responsibilities. With expertise in global entity management, TopSource assists businesses in navigating the intricacies of legal structures across borders.

Let's get started

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