Overview

Capital
Valetta
Currency
Euro (EUR)
Date Format
dd/mm/yyyy

Taxes

Employer

Employer Payroll Tax

10.0%
Social Security. A flat rate of 48.05 EUR is added for annual income over 24,986 EUR.
10% Total Employment Cost
Employee

Employee Payroll Taxes

10.0%
Social Security. A flat rate of 48.05 EUR is added for annual income over 24,986 EUR.
10% Total Employee Cost
Employee

Employee Income Tax

0-35%
Progressive income tax rates
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Slovakia
Malta
South Africa
Georgia
Macedonia
82.39%
41.12%
37.2%
10%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Malta
Georgia
Belarus
Ukraine
45%
28%
27.65%
10%
2%
1%
0%

Minimum Wage

General

The national minimum wage is 181.08 EUR a week for employees over the age of 18.   

Minimum wage (per month)
$4000
$2663
$2491
$909.38
$47
$36.80
$2.33
Geneva
Luxembourg
Australia
Malta
Malawi
Angola
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Salaries are paid every 4 weeks on regular payment schedules.

13th Salary

Not required.

Working Hours

General

A standard full-time work week is 40 hours or 8 hours per day.

Overtime

Overtime is regulated by the Wage Regulation Order (WRO) which outlines different overtime rules by industry. If an employee is not covered by the WRO, overtime is 150% of the regular pay rate of work over 40 hours per week and averaged over 4 weeks.

Leave

Paid Time Off

If an employee has completed 1 year of full-time employment, they are entitled to 192hrs basic leave entitlement plus 24 hours in lieu of the 3 Public Holidays that fall on weekends.

An employee can carry over up to 50% of their paid leave to the following year, so long as there is an agreement with the employer.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Albania
Malta
Michigan
China
Federal
30
13
43
30
12
42
28
14
42
27
14
41
2
11
13
5
7
12
10
10
Public Holidays

There are 14 public holidays.  

Sick Days

Sick leave is regulated under the Wage Regulation Order (WRO). In cases where an employee is not covered by the WRO, the benefit is 2 weeks paid sick leave per year.  After the 2 weeks, an employee may be entitled to a sickness benefit through Social Security.

A medical certificate must be provided to use sick leave.

Maternity Leave

Maternity leave in Malta is 18 weeks and starts 4 weeks before the expected due date. At least 6 weeks after the birth must be taken. The employer is responsible for paying 100% of wages for the first 14 weeks.

PAID MATERNITY LEAVE (DAYS)
410
365
365
126
45
30
0
Bulgaria
Serbia
Albania
Malta
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

There are no provisions in the law regarding paternity leave.

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

Bereavement– 1 working day for employees not covered by the Wage Regulation Order.

Marriage Leave– 2 working days for employees not covered by the Wage Regulation Order.

Termination

Termination Process

In Malta, an employee can be terminated for just cause, redundancy, or due to reaching the age of retirement.

If requested by an employee who has completed at least 1 month of employment, the employer is obligated to provide an employment certificate stating dates employed and a description of duties.  If the employee requests, the reason for termination must also be included.

Notice Period

The notice period depends on the length of employment:

  • Less than 1 month of employment – No notice required
  • 1- 6 months employment- 1-week notice
  • 6 months- 2 years of employment- 2 weeks’ notice
  • 2-4 years of employment- 4 weeks’ notice
  • 4-7 years of employment- 8 weeks’ notice
  • 7-8 years of employment- 9 weeks’ notice
  • 8-9 years of employment- 10 weeks’ notice
  • 9-10 years of employment- 11 weeks’ notice
  • 10+ years of employment- 12 weeks’ notice

It is possible to pay the employee in lieu of notice. However, if an employee is on notice and chooses not to work during this period or resigns without giving notice, they are obligated to pay the employer 50% 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 12 months. During this time, an employee may be dismissed with 1 weeks’ notice if they have completed at least 1 month of employment.

An employee and employer can agree on a shorter probation period; however, the agreement is binding and must be upheld.

VAT

General

The standard VAT rate is 18%.

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