Hire and pay employees in

Malta, hassle-free

Hire and pay employees in Malta, hassle-free

With Deel, your business can easily hire employees in Malta. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Malta is 5 days with Deel.

Currency

Euro (EUR)

Capital

Valletta

Official Language

Maltese & English

Payroll Cycle

Monthly

Onboard, pay and manage employees in Malta with Deel.

Usually, to hire in Malta, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Malta quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for Malta
built right in

Deel allows you to provide localized benefits for employees in Malta within minutes. All in one manageable online dashboard.

  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in Malta

Navigate the tabs below to learn everything you need to know about hiring an employee in Malta

Minimum Wage Requirements

The minimum wage is EUR 731.32 per month. The minimum wage can vary according to the age of the employee.Employees are entitled to annual cost-of-living adjustments at rates set by the government of Malta. For 2023, these increases were €514.80 for full-time employees and €386.10 for part-time employees.

Please note: each year the Government of Malta calculates a Cost of Living Adjustment. This is part of the annual budget and is based on last year’s inflation measurements. The COLA for 2024 is €12.81 per week.

Individual Income Tax

The individual income tax ranges from 0% to 35%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Single:

Gross Annual Income Tax Rate (%)
Up to EUR - 9,100 0%
Up to EUR - 14,500 15%
Up to EUR - 19,500 25%
Up to EUR - 60,000 30%
Over EUR - 60,000 35%

 

Married:

Gross Annual Income Tax Rate (%)
Up to EUR - 12,700 0%
Up to EUR - 21,200 15%
Up to EUR - 28,700 25%
Up to EUR - 60,000 30%
Over EUR - 60,000 35%

 

 

 

 

 

Parents:

Gross Annual Income Tax Rate (%)
Up to EUR - 10,500 0%
Up to EUR - 15,800 15%
Up to EUR - 21,200 25%
Up to EUR - 60,000 30%
Over EUR - 60,000 35%

Payroll Cost

The employer cost is generally estimated at around 10.30% of the employee's salary. The government bonuses (relating to the weekly allowance and statutory bonuses) are aded on top of this employer cost.

  • Social Security - 10%*

  • Maternity Trust Fund - 0.30%

  • Semi-annual government bonus: Weekly allowance, payable at the end of March and September respectively - EUR 121.16

  • Semi-annual government bonus: Statutory bonus, payable at the end of June and December respectively - EUR 135.10

 

*The maximum amounts of social security contributions are calculated based on the employee’s weekly salary and number of Mondays in the month. For employees earning more than EUR 515.99/week, the social security contributions will be up to EUR 206.40 for months with four Mondays and EUR 258 for months with five Mondays.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday. The maximum workweek can be extended up to 48 hours.

Deel employment agreements cover a maximum of 48 working hours, however the standard can be considered 40 hours. Hours worked after that period, will be considered overtime.

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 48 hours of work a week unless written consent is provided by the employee. For additional hours, employees are paid:

  • 150% of the hourly rate, for work on Monday-Saturday.
  • 200% of the hourly rate, for work on Sundays or Public Holidays.

Maternity Leave

Pregnant employees who have worked for 6 consecutive months are entitled to 18 weeks of paid leave. 4 weeks must be taken before the child's birth. The employee will receive 100% of the salary during this period, and the employer will pay the first 14 weeks and Social Security will be responsible for the last 4 weeks.

The employee can extend leave additional 4 months at unpaid.

Paternity Leave

Employees are entitled to 1 day of paid paternity leave. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.

The employee can extend leave an additional 4 months at unpaid.

Parental Leave

Employees are entitled to 4 months of parental leave. Both parents are entitled to this leave, which should be taken before the child reaches the age of 8 years. Either parent can take parental leave. Parental leave is unpaid.

Sick Leave

Employees are entitled to paid sick leave for up to 10 days (80 hours). This leave is paid at different rates and by different payers depending upon length:

Period Pay Payer
0 - 3 days 100% of base salary Employer
4 - 10 days 100% of base salary Social Security

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Malta can be complex. There is no at-will termination in Malta for employers outside the probation period and termination must be done for just cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • Probation period
    • Objective grounds
    • Disciplinary dismissal
    • Performance due to unsuitability for the job
  • By the expiration of the contract

Notice Period

The minimum notice period is one week and will be increased according to the length of the employment.

  • one week if the length of service is less than 6 months
  • 2 weeks if the length of service is less than 2 years
  • 4 weeks if the length of service is less than 4 years
  • 8 weeks if the length of service is less than 7 years
  • For more than seven years, an additional 1 week for every subsequent year of service or part thereof up to a maximum of twelve weeks

Severance for Employees

In Malta, there are no statutory requirements for severance payments. During the notice period, the employee will receive standard salary wages.

Paid Time Off

Full-time employees are entitled to 24 working days of paid time off (PTO). However, if a public holiday falls on a weekend then employees are entitled to an additional day of PTO.

In 2022, 4 public holidays fall on a weekend, therefore the current year employees are entitled to 28 days’ leave.

PTO accrues monthly at 2 days per month and employees are eligible for annual leave after they accrue a month of work.

Part-time employees are entitled to the average number of hours worked daily over a week multiplied by 24.

Public Holidays

Malta celebrates 14 national holidays.

National public holidays include:

  • New Year’s Day
  • Feast of St Paul's Shipwreck
  • Feast of St Joseph
  • Freedom Day
  • Good Friday
  • Workers' Day
  • Sette Giugno
  • Feast of St Peter and St Paul
  • Feast of the Assumption
  • Victory Day
  • Independence Day
  • Immaculate Conception
  • Republic Day
  • Christmas Day

Onboarding

Onboarding takes 5 business days. The documents must be completed 1 day before the start date.

Employment Contract Details

Contracts must be in English. They must be in writing and signed by both parties.

A contract must include:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

Probation periods are mandatory. The minimum probation period is 3 months and the maximum probation period is 6 months. For administrative, technical, managerial, or executive employees with a salary higher than double the annual minimum wage, the probation period can be extended to 6 months and renewed for 6 more months (1 year in total).
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Hiring in Malta, hassle-free

With Deel, your business can easily hire employees in Malta with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Malta and 150+ countries.

Group (8)

Starting at 599 USD

Management fee

Group (9)

10.3%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Malta?

View our Employee Cost Calculator

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