Employment Law

Malta Employment Contract

In Malta, employment contracts can be oral or written, but we always recommend writing a formal contract for each employee. Each contract should include all relevant details of the employment agreement, such as expected responsibilities, salary/wages, termination provisions, etc. They should also be written in one of Malta's official languages ​​(English and Maltese) and use the local currency, the euro.

Fixed Term

Indefinite

Malta Working Hours

The standard working week in Malta is approximately 40 hours. Any time spent in excess of the legal maximum of 48 hours must be paid as overtime.

Holiday Policy

Malta Vacation

Employees in Malta are entitled to 24 days of paid leave, as well as any national holiday falling on a Sunday in that year.

Malta Sick Leave

Employees in Malta are entitled to 20 days of paid sick leave and receive full salary compensation. In some cases, they can extend the period by an additional 20 days.

Maternity and Paternity Leave in Malta

Female employees in Malta are entitled to 14 weeks of paid maternity leave, of which at least six weeks following childbirth. The salary is unified, and single mothers can enjoy more benefits.

Employee Severance Pay and Termination of Contract in Malta

Employees in Malta are generally entitled to a notice period before terminating their contract. The minimum notice period required varies depending on the employee's length of service, ranging from one week to eight weeks in advance.

Malta Tax Law

Maltese employers and employees are generally required to pay equal amounts into the country's social security scheme. The amount can vary, but is usually around 10% of salary.

Malta's income tax rates range from 0% to 35%, depending on income level and whether the individual is single or married.

The corporate tax rate for most businesses in Malta is 35%.

Health Insurance in Malta

Employees in Malta have access to the country's socialized healthcare system, but some employers may still choose to offer private insurance in certain circumstances.

Salary and Benefits

Malta’s Compensation Law

The national minimum wage in Malta for full-time employees over the age of 18 is €179.33 per week.

Benefits Administration in Malta

Understanding and setting up employee benefits in Malta can be difficult and can require significant time, effort and investment from the employer. However, it's critical to comply with payroll and benefit laws because if you don't, you could face hefty fines and legal issues.

Outsourcing your benefits administration processes can save you time and money and ensure you are fully compliant with relevant laws. Remoly can simplify your Malta benefits administration, with our Malta experts setting up and managing everything for you, helping you focus on a successful business expansion.