Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The national minimum wage is 181.08 EUR a week for employees over the age of 18.
Salaries are paid every 4 weeks on regular payment schedules.
A standard full-time work week is 40 hours or 8 hours per day.
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.
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.
There are 14 public holidays.
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 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.
There are no provisions in the law regarding paternity 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.
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.
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.
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.
There are no statutory laws on severance pay.
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.
The standard VAT rate is 18%.