Minimum Wage
General
The national minimum wage for full-time employees is 182.83 EUR per week for an employee aged 18 and over, 176.05 EUR per week for an employee aged 17, and 173.21 EUR per week for an employee aged under 17.
The national minimum wage for part-time employees is calculated pro-rata at the same hourly rate of a comparable full-time employee in accordance with the relevant Wage Regulation Order.
Payroll
Payroll Cycle
Salaries are paid every 4 weeks on regular payment schedules.
13th Salary
There are no provisions in the law regarding 13th salaries.
Working Hours
General
A standard full-time workweek in Malta consists of 40 hours per week or 8 hours per day.
The standard working hours as stipulated in the Wage Regulation Orders are 40 hours per week but not exceeding a maximum of an average of 48 hours a week across a period of 17 weeks.
Overtime
Overtime is regulated by the Wage Regulation Order (WRO), which outlines different overtime rules by industry. If the WRO does not cover an employee, overtime is calculated at 150.00% of the regular pay rate of work over 40 hours per week and averaged over four weeks.
The income tax rate applicable on qualifying overtime is 15%, up to a maximum amount of emoluments of 10,000 EUR rather than a maximum of 100 hours of overtime. Overtime emoluments exceeding this amount are taxable at the standard applicable rates of income tax.
Working Week
Monday-Friday
Leave
Paid Time Off
Full-time employees who work 40 hours per week are entitled to 224 hours of paid annual leave, comprised of 192 hours of basic leave entitlement plus 32 hours for four public holidays that fall on a weekend. (pro-rata for employees not working full-time hours).
The law stipulates that a minimum of four weeks cannot be replaced by any allowances, except where employment is terminated.
Public Holidays
There are 14 public holidays.
Sick Days
Sick leave is regulated under the Wage Regulation Order (WRO). When the WRO does not cover an employee, the sick leave entitlement is two weeks per year. After two weeks, an employee may be entitled to a sickness benefit through Social Security.
The employee must provide a medical certificate for all sick leave.
Maternity Leave
Maternity leave in Malta is 18 weeks and starts 4 weeks before the expected due date, and an employee must take a minimum of 6 weeks after the birth.
The maternity benefit is paid at 100.00% of the regular rate of salary by the employer for the first 14 weeks, after that, paid by Social Security.
Paternity Leave
There is no statutory paternity leave in Malta.
Parental Leave
Parents are entitled to 4 months paid leave for the birth of a child, adoption, fostering, or general care until the child reaches the age of 8.
To be eligible, the employee must have been employed for at least 12 consecutive months.
Other Leave
Depending on the Collective Agreement/Employment Contract terms, an employee may be allowed additional leave types once approved between the employer and employee. In Malta, the employer must let employees take other statutory leave, such as bereavement leave, marriage leave, parental leave, court witness leave, jury service leave, injury leave, and birth leave.
Termination
Termination Process
Employers can terminate a fix term contract by giving the following reasons – business, personal, or workers misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given, and the employee gets a chance to explain their actions.
In Malta, an employer can terminate an employee for just cause, redundancy, or due to reaching the age of retirement. If requested by an employee who has completed at least one month of employment, the employer is obligated to provide an employment certificate stating dates employed and a description of duties (the reason for termination must also be included).
Also, upon termination from employment, an employee has the right to claim financial compensation for any balance of outstanding leave that is due.
Notice Period
The amount of notice required is dependent on the length of service and reason for termination, as follows:
- If an employee has less than one month of service, no notice period is required
- For an employee with between one and six months of service, one week of notice is required
- For an employee with between six months and two years’ service, two weeks’ notice is required
- For an employee with between two- and four years’ service, four weeks’ notice is required
- For an employee with between four- and seven years’ service, eight weeks’ notice is required
- For an employee with between seven- and eight years’ service, nine weeks’ notice is required
- For an employee with between eight- and nine years of service, ten weeks’ notice is required
- For an employee with between nine- and ten years’ service, 11 weeks’ notice is required
- For an employee with more than ten years’ service, 12 weeks’ notice is required
It is possible to pay the employee in lieu of notice. However, suppose an employee is due to work the notice and chooses not to work during this period or resign without notice. In that case, they are obligated to pay the employer 50.00% of the wages that would have been earned during the notice period.
Severance Pay
There are no statutory laws on severance pay.
Probation Period
The probation period is generally 12 months.
VISA
VISA
Malta’s immigration law provides several options for employers of foreign nationals. Malta is a member of the European Union (EU) and the Schengen Area. Requirements, processing times, employment eligibility, and benefits for accompanying family members vary by visa classification.
Business visitors to Malta typically use a local version of the Schengen C Visa unless they are visa exempt based on their nationality. The Schengen Area limits stay to 90 days within 180 days.
For work, foreign nationals traveling to Malta require a Single Permit, which combines work and residence authorisation. The Single Permit can be issued for one year and is renewable.
VAT
General
The standard rate of VAT in Mata is 18.00%.
