Employer of Record (EOR) in
Malta
Ready to employ talent in Malta?
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Malta to stay compliant from day one.
Language(s)
Currency
Capital
Valletta
Population
0.5 M
Public holidays
14
VAT
18%
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Malta to stay compliant from day one.
DEFAULT
Indefinite contract
The default and most common form of employment in Malta with no fixed end date. Provides full statutory protections (notice, unfair dismissal safeguards, redundancy rights) from the outset, subject to a permitted probationary period.
Fixed-term contracts must generally run at least 6 months and cannot exceed a cumulative 4 years, unless there is an objectively justifiable business reason for a further term. Once the 4-year threshold is exceeded, the employee is automatically treated as indefinite. Fixed-term employees get the same pay/conditions as comparable indefinite employees. Probation on a fixed-term contract is capped proportionally (2 months per 6 months of contract length, up to 6 months max for contracts of 15+ months).
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Malta to stay compliant from day one.
Standard working week is 40 hours. Average weekly working time (including overtime) is capped at 48 hours over a reference period unless the employee has validly opted out in writing. Minimum daily rest of 11 consecutive hours. No single universal statutory overtime premium; governed by contract or sector-specific Wage Regulation Order (WRO), with 150% being common market/WRO practice for weekday overtime and up to 200% for Sundays/holidays.
PROBATION PERIOD
6 months max (up to 12 by role)
Default maximum probation period is 6 months, though parties may agree shorter. Senior employees earning at least double the statutory minimum wage may be given a 12-month probation if expressly stated in the written contract. For fixed-term contracts, probation is capped proportionally. Either party may terminate during probation with not less than 1 week's notice (once employment exceeds 1 month). Probation is automatically suspended/extended during approved leave of 2+ weeks.
13TH / 14TH SALARY
Required
Malta mandates statutory bonus and weekly allowance payments to all employees, set as fixed euro amounts (updated periodically, linked to COLA). For 2025: Bonus of EUR 135.10 paid end of June and again mid-late December; Weekly Allowance of EUR 121.16 paid end of March and end of September. Together these function similarly to a 13th/14th month salary but are legally distinct from any discretionary or CBA-negotiated bonus.
JOB TITLE REGULATIONS
Regulated
No broad general job-title licensing, but several regulated professions require specific qualifications (medicine, law, accountancy/auditing, financial services under MFSA, gaming under MGA). Non-EU/EEA (third-country) nationals generally require a Single Permit issued jointly by Identity Malta and Jobsplus, which can include a labour market test; hiring of third-country nationals is subject to quota/sector policies that can change with little notice.
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Malta to stay compliant from day one.
Approximately 10.3% of gross basic weekly wage: (1) Class 1 Social Security Contribution - 10% of basic weekly wage within contribution bands, mirroring the employee's share, subject to weekly floors/caps; and (2) a Maternity Fund contribution - a small additional employer-only levy funding the state-paid portion of statutory maternity leave. No separate mandatory employer pension, health, or unemployment insurance contribution outside this structure.
10% of basic weekly wage as the employee's share of the Class 1 Social Security Contribution, matching the employer's share within the same wage bands. Funds state benefits including pensions, sickness benefit, invalidity pension, and unemployment benefit. Separately, employees are subject to progressive personal income tax (0%-35%) withheld under the FSS system, not a social security contribution.
Tax, social security, and minimum wage figures reflect Malta's published rates as of August 2026 and are for general guidance only. Rates and thresholds are reviewed and can change annually, typically effective 1 January following the national Budget. Confirm current figures with the Malta Tax and Customs Administration (MTCA), the Department of Industrial and Employment Relations (DIER), and Jobsplus before relying on these for payroll or compliance decisions.
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Calculate your EOR costsHere's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Malta to stay compliant from day one.
Type
Duration
Pay During Leave
Maternity leave
100% (first 14 wks, then flat rate)
Sick leave (days 1-3)
100% (employer, within 2-wk statutory entitlement)
100% (employer) to 2-wk cap; state Sickness Benefit available from ~day 4
Generally unpaid beyond statutory 2 wks; state Sickness Benefit up to 156 days (312 for major illness)
3 working days (uniform minimum across all sectors following a 2026 amendment to the Minimum Special Leave Entitlement Regulations; previously 2 days for employees not covered by a WRO).
Marriage Leave
3 working days (uniform minimum across all sectors following the same 2026 amendment; previously 1 day for employees not covered by a WRO), for the death of a spouse/partner, parent, child, or sibling.
Bereavement Leave
15 hours of paid leave per year, for urgent and unforeseeable family reasons such as the sickness or accident of an immediate family member.
Urgent Family (Force Majeure) Leave
Up to 100 hours of fully paid leave per couple (60 hours to the person receiving treatment, 40 hours to the partner), available for up to 3 treatment cycles.
IVF / Medically Assisted Procreation Leave
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Malta to stay compliant from day one.
Statutory Benefits
In addition to statutory leave, employees are entitled to the following statutory benefits:
Malta operates a single Class 1 Social Security Contribution (SSC) system for employed persons, split equally between employer and employee, plus a small employer-only Maternity Fund levy. 2026 figures:
- Employee share: 10% of the basic weekly wage within the applicable band (subject to weekly floors/caps by category and birth year).
- Employer share: 10% of the basic weekly wage, mirroring the employee's contribution.
- Maternity Fund contribution: An additional employer-only levy funding the state-paid portion of statutory maternity leave.
- Students/reduced categories: Lower fixed weekly rates apply to under-18s and full-time students.
- What it funds: State pensions, Sickness Benefit, Injury Benefit, Invalidity Pension, Unemployment Benefit, and Maternity Benefit.
WORKPLACE INJURY PROTECTION
Malta combines two mechanisms rather than a standalone US-style workers' compensation policy:
- Compulsory Employers' Liability Insurance: Every employer must hold liability insurance covering death or bodily injury to employees arising from employment. Failure to maintain cover is a criminal offence.
- State Injury Benefit / Disablement Pension: Funded through Class 1 SSC, employees with a work-related accident/disease can claim Injury Benefit and, for permanent incapacity, a Disablement Pension/Gratuity.
- Injury Leave: Extended paid leave (up to around 1 year in serious cases, subject to medical certification) for work-related injury.
Malta does not have a general statutory severance payment for length of service upon any termination; statutory compensation is tied specifically to redundancy:
- Redundancy payment: Employees with at least 6 months of continuous service dismissed for genuine redundancy get 1 week's average wage per year of service, capped at 20 weeks' pay.
- Redundancy selection: Employers generally must follow a fair, non-discriminatory method (commonly LIFO) and offer re-engagement priority.
- Unfair dismissal: The Industrial Tribunal can order reinstatement/re-engagement or award compensation (in practice up to roughly a year's wages), distinct from the redundancy formula.
Malta mandates fixed statutory 'Government Bonus' and 'Weekly Allowance' payments, functioning similarly to a 13th/14th month salary supplement:
- Bonus: Paid end of June and mid-late December (2025 rate: EUR 135.10 each payment).
- Weekly Allowance: Paid end of March and end of September (2025 rate: EUR 121.16 each payment).
- Nature: Fixed euro amounts set by government (indexed with COLA), not a percentage of salary, applying uniformly regardless of pay grade.
- Pro-ration: Amounts pro-rated for part-time employees and partial reference periods.
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Malta to stay compliant from day one.
Unfair dismissal
A dismissal is unfair/unlawful where the employer cannot show a valid, legally recognised reason (just cause or redundancy) and/or fails to follow a fair process. Dismissals for discriminatory reasons, in retaliation for exercising a statutory right, or during a protected period (e.g., extended probation due to approved leave) are automatically unfair. The burden of proof is on the employer. Claims go to the Industrial Tribunal; remedies include reinstatement, re-engagement, or compensation (up to roughly a year's wages).
Objective / fair dismissal
Valid grounds: (1) serious misconduct or gross insubordination justifying summary dismissal; (2) poor performance/incapability, properly documented with a fair opportunity to improve; (3) genuine redundancy following fair selection criteria; and (4) other legally recognised substantial reasons. Employers should follow due process to defend the dismissal as fair if challenged.
During probation
At least 1 week's notice once employment exceeds 1 month (none required in the first month); pay in lieu owed if required notice isn't given. Probation pauses during approved leave of 2+ weeks.
After probation
Once probation ends, termination must be based on a valid ground (just cause/summary dismissal, capability/performance grounds properly managed, or genuine redundancy) and the applicable graduated statutory notice period (1-12 weeks by tenure) given, or payment in lieu made where contractually permitted. Redundancy with 6+ months' service triggers the statutory redundancy payment. Employees can bring claims before the Industrial Tribunal.
Termination, notice, and severance rules summarized here reflect Maltese statutory minimums as understood as of August 2026 and are for general informational purposes only. Actual entitlements can be affected by individual contracts, CBAs, or sector-specific WROs, which may be more favourable than the statutory floor. Not legal advice; consult DIER or qualified local counsel before making termination decisions.
Content last reviewed Sep 2026. Employment laws change fast, always verify critical hiring decisions, and talk to our team of international experts.
