Malta, officially known as the Republic of Malta, is an island country situated in Southern Europe between Sicily and North Africa. There are over 300,000 people in Malta’s workforce as of 2024, accounting for 65.8% of the total population, and Malta has an average GDP of 25.75 billion US dollars (2025).

The economy of Malta is a highly industrialized, service-based economy, with a heavy reliance on trade with Europe. Since joining the European Union in 2004, Malta’s economy has grown in strength and has seen an annual growth in GDP of 6.5% since 2015.

Companies across the world are choosing to expand their businesses into Malta due to the bilingual workforce, tax incentives, and access to EU markets. Employment in Malta can be highly beneficial, provided that all local Maltese labor laws are complied with.

This help guide will give a thorough overview of Maltese labor laws, including mandatory employee benefits that workers are entitled to and recommendations for supplementary benefits companies should offer. We’ll also detail how Remote People can help streamline hiring in Malta through our Employer of Record (EOR) services.

Maltese Employment Laws

Malta’s labor laws are primarily dictated by the Employment and Industrial Relations Act (EIRA) of 2002. These laws provide details on employee rights such as paid leave allowances, overtime compensation, and set working hours.

Other major laws that inform labor laws include the following:

  • Equal Opportunities Act of 2000
  • Business Promotion Act of 1988
  • Occupational Health and Safety Act of 2000
  • Malta Council for Economic and Social Development Act of 2001
  • Employment and Training Services Act of 1990

It’s strongly recommended that businesses consult with legal professionals before hiring in Malta to ensure that all Maltese labor law is complied with, preventing any penalties or legal issues from occurring.

Mandatory Employee Benefits in Malta

There are many mandatory employee benefits that workers in Malta are entitled to. These are as follows.

Social Security Contributions

Workers in Malta are entitled to financial protection via Malta’s Social Security System, which has been in place for 69 years.

The Social Security Act in Malta requires that all workers in Malta between the ages of 16 and 65 must be insured by this system, with employers required to pay both their own contributions and allocated amounts from an employee’s salary.

Employers and employees are required to pay 10% in social security contributions. There is also a fixed rate of 54.43 EUR payable per week for employees on annual salaries exceeding 28,303 EUR if the employee was born after 1st January 1962.

Annual Paid Leave

Paid leave in Malta is not legally codified by a set number of days; instead, employees are entitled to 5 working weeks plus 4 days of paid leave per year.

They are also permitted 14 public holidays with pay per year – if a public holiday falls on a weekend, they are provided with an additional day of leave.

Employees working in specific industries such as manufacturing, banking, wholesale, education, and hospitality may take their annual leave during company shutdown periods.

Working Hours

The normal working week in Malta is 40 hours per week, however, some industries work extra hours, including cinemas and theatres, hire car services, public transport, and manufacturing.

All workers are entitled to at least one day of rest per week, and a 15-minute break per 6 hours worked. Night work constitutes work that includes 50% or more of hours worked between the hours of 10 pm and 6 am.

National Minimum Wage

Minimum wage in Malta varies by age and is paid as follows:

Age Group
Minimum Weekly Wage
Aged 18 or older
€229.44 per week
Aged 17
€222.66 per week
Aged under 17
€219.82 per week

Workers in Malta must be paid the minimum wage or face penalties/legal implications. Some sectors in Malta will have a varied minimum wage, including the construction, beverage, and security industries.

Overtime Pay

Any hours carried out above a worker’s set contracted hours are considered overtime, and must be paid at the rate of 1.5 times a worker’s normal hourly rate, or 2 times on Sundays and public holidays. Employees are not able to refuse overtime requests from employers.

Public holidays in Malta are generally paid days off and are considered separate from annual leave.

  • January 1: New Year’s Day
  • February 10: Feast of Saint Paul’s Shipwreck
  • March 19: Feast of Saint Joseph
  • March 31: Freedom Day 
  • April 3: Good Friday (movable date)
  • April 6: Easter Monday (movable date)
  • May 1: Labour Day/May Day
  • June 7: Sette Giugno
  • June 29: Feast of Saints Peter and Paul
  • August 15: The Feast of Mary’s Assumption
  • September 8: The Feast of Our Lady of Victories
  • September 21: Independence Day
  • December 8: Feast of the Immaculate Conception
  • December 13: Republic Day
  • December 25: Christmas Day
  • December 26: Boxing Day

Sick leave is regulated by Wage Regulation Orders (WROs) in Malta in certain sectors. This means that sick leave can vary; however, employees working in sectors not covered by a WRO typically receive 2 weeks of paid sick leave per year.

Employees must provide a medical certificate certified by a doctor to be eligible for sick leave at full pay. If an employee has used their sick leave allowance, they may be able to apply for sickness benefit via the Social Security system.

Maternity Leave

Female employees can take a maximum of 14 weeks of maternity leave if they have a baby—the employer pays for this in full. An additional 4 weeks of maternity leave may be taken, payable as Maternity Leave Benefit via the Social Security System.

Paternity Leave

Male employees in Malta are entitled to 10 working days of paid paternity leave if their partner gives birth to a child. This leave also applies to adoptive parents. Paternity leave must be taken immediately after the birth or adoption of a child. Paternity leave is paid in full by the employer, but this can be claimed back from the Social Security System.

Pensions

The pension system in Malta consists of an old-age pension funded by the Social Security System and private pension plans.

To claim a full old-age pension, workers in Malta must have paid a minimum of 50 contributions from 1956 or the age of 18 (whichever occurs later), and/or from the age of 18 if born after 1958. The pension age is 61 for both men and women in Malta.

Private pensions, such as occupational pensions, provide an additional method of saving for retirement.

Severance Pay

There is no statutory severance pay in Malta, however, some employers choose to offer severance pay in the event of termination where the employee is not at fault. This tends to be paid based on years of service.

Supplementary Employee Benefits in Malta

It’s strongly advised that employers consider offering supplementary employee benefits to workers in Malta to attract new applicants to job roles, while also improving existing employee retention. Some examples of supplementary benefits employers could offer include:

  • Performance bonuses
  • Advanced training schemes
  • Private pension plans
  • Flexible working hours
  • Enhanced annual/maternity/paternity leave
  • Expenses for transport, food, and housing

Optimize Employee Benefits with Remote People

Malta’s labor laws can dissuade people from doing business in Malta due to differences in employee benefits in a company’s home country.

Remote People can help make hiring in Malta a simpler process through our Employer of Record (EOR) services. Our EOR team has experience in the Maltese market, understands the nuances of local employment, and has in-depth knowledge of Maltese labor laws—ensuring your hiring process is both compliant and efficient.

We can also help you do business in Malta with our recruitment experts, helping you to directly hire the best new talent for your company. Our team is fluent in the local language, knows the best places to advertise job vacancies, and can help you expand your business into Malta with ease.

Contact Remote People today to start hiring in Malta and learn the best time-saving, cost-effective ways to grow your business.