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

EUR 828.74 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: one day's paid leave.
• Parental leave: parents who have at least 12 months' service can apply for up to four months' unpaid parental leave.

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 solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.