Malta, officially known as the Republic of Malta, is a southern European island country. It is one of the world’s smallest countries, but most densely populated with 450,000 residents. Tourism, manufacturing, and finance are some of the key industries in Malta.

Managing payroll in Malta can be complicated. Statutory requirements must be strictly adhered to, including full records for each employee including salary, bonus, deductions, and more, from the start date to termination of employment. Companies registered in other countries are allowed to obtain a license to do business and have employees in the country under Maltese law.

Labor and Payroll Considerations:

  • Employment contracts must be written, and if a verbal offer is given, the contract must be written within 8 days
  • Collective Bargaining Agreements are set at the company level
  • Minimum wage is €175.84 per week
  • Payroll taxes, including VAT are withheld from employee pay
  • Employers submit income tax and social security monthly to the Inland Revenue Department
  • New employees must be registered with the Inland Revenue Department and JOBSPLUS within 14 days of starting work
  • If an employee is terminated, JOBSPLUS must be notified, and if the employee is a foreign worker, the Inland Revenue Department must also be notified
  • Foreign workers who are not from EU/EEA countries will need a work permit
  • Employers must prove that a vacancy was advertised to Maltese, EU, and Swiss workers before they hired a foreign worker
  • In accordance with the labor laws of Malta, sick pay rules are as follows: 20 days sick leave with full pay and 20 days sick leave with half pay

If you are hiring employees in Malta, or would like to simplify your operations there, we can help. Our cloud-based payroll technology gives you one platform to manage your global employees in every country. We have customized reporting so you can view your payroll in real-time across all countries and currencies. You have access to a US-based service team and in-country experts in Malta to help when questions come up. To learn more about simplifying your payroll and compliance in Malta, click here