Malta

• 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 Paul
• Feast of the Assumption
• Feast of Our Lady of Victories
• Independence Day
• Feast of the Immaculate Conception
• Republic Day
• Christmas Day

Working Hours

Standard working hours vary according to sector. For most industries, the standard workweek is 40 hours.

Minimum Wage

For 2025, the national minimum wage is €221.78 per week, and €961.05 per month.

Employee Tax

Annual income	Tax rate*
Up to EUR 9,100	0%
EUR 9,101 - 14,500	15% - EUR 1,365
EUR 14,501 - 19,500	25% - EUR 2,815
EUR 19,501 - 60,000	25% - EUR 2,725
More than EUR 60,000	35% - EUR 8,725
Social security contribution	10%

*Based on a single person’s income. Tax bands may be different for married couples filing jointly.

Bonuses

It is mandatory for employers in Malta to pay quarterly bonuses to all employees, regardless of industry or organisation type. The bonus value for each quarter is set at a national level.

If a contract lasts more than one month, the employer must issue a written contract or a written statement including the key details of employment. This must be issued within eight working days of the start date.

All contracts should include:

• Salary and overtime rates
• Working hours
• Workplace
• Leave entitlement

Fixed-term contracts are permitted for up to four years in Malta.

Annual Leave

Minimum of 192 hours’ paid annual leave for employees who work 40 hours per week. This is adjusted pro-rata for part-time employees or those who work more than 40 hours a week.

Sick Leave

The amount of sick leave varies, according to the relevant Wage Regulation Order that regulates the specific sector or industry. A medical certificate is usually required.

Parental Leave

• Maternity leave: at least 18 weeks' paid leave.
• Paternity leave: employees are entitled to 10 days of paternity leave.
• Parental leave: 4 months of parental leave (2 months are paid; the remaining 2 months unpaid).

Termination Process

Employment in Malta is not at will. Dismissals are only permitted in limited circumstances.

The only grounds for termination are:

• A just cause
• Retirement
• Redundancy

Just cause is undefined in Maltese law. Each case of unfair dismissal is assessed by the Industrial Tribunal.

Employees can terminate the contract, by providing notice in line with their contract terms.

Severance Pay

There is no statutory right to severance pay in Malta, with the exception of compensation in lieu of notice.

Under a Mauve Group Employer of Record (EOR) solution, clients and their international workers benefit from access to Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance framework that connects all Mauve entities with two trusted providers. As part of our comprehensive global Employer of Record services, this insurance offering supports companies employing staff overseas by ensuring full compliance with local legal requirements while safeguarding their workforce.

The programme provides international insurance coverage through a combination of the master policy and jurisdiction-specific local policies, where required by law. This structure ensures seamless alignment with local employment laws—an essential element of maintaining global regulatory compliance within any international EOR payroll arrangement.

Coverage includes:

• Employer’s Liability and Public Liability – £10,000,000 combined limit
• Professional Indemnity – £5,000,000 limit
• Worker’s Compensation – Limit varies based on the employee’s country of work

This solution is ideal for organisations seeking to streamline global employee management while ensuring every EOR employee is protected and fully compliant in their respective jurisdictions.

For tailored advice on EOR insurance coverage, payroll compliance, or global compliance services in your target country, get in touch with Mauve’s expert international HR consultancy team.