The main law governing employment in Malta is the Employment and Industrial Relations Act (EIRA), and is primarily regulated by the Department of Industrial and Employment Relations (DIER). 

Malta’s job market has some unique features that make it different from other European countries. The country has built a wage system that protects workers while still giving businesses the flexibility they need to succeed.

Here’s What to Know About the Minimum Wage in Malta

Malta has a national minimum wage that applies to all workers across the country. As of January 1, 2026, the minimum wage for workers who are 18 years old or older is €229.44 per week. The minimum wage is different based on how old the worker is.

Workers who are 17 years old receive €222.66 per week, and those under 17 receive €219.82 per week. This tiered system recognizes that younger workers might have less experience, but it still ensures everyone gets fair pay. When you calculate this as a monthly salary, the minimum wage equals approximately €995 per month for adults, which works out to about €11,933 per year before allowances.

This gives employers doing business in Malta clear numbers to work with when they’re planning budgets and writing job contracts. A key feature of the Maltese system is the automatic Cost of Living Adjustment (COLA).

This mechanism, tied to inflation measures, mandates an annual increase to all wages, not just the minimum, to help compensate for rising costs. For 2026, workers received an additional €4.66 per week (€242.32 per year) as the COLA increase—slightly lower than the COLA for 2025—to help address ongoing cost-of-living pressures.

Rules for Part-Time Workers

Part-time employees in Malta are paid the same hourly rate as full-time workers. The hourly rate is calculated by dividing the full-time minimum wage by 40 hours per week. The cost-of-living increase (COLA) for part-time workers in 2026 is €0.12 per hour, based on the pro-rata amount of the full-time COLA.

Employers need to be careful when calculating part-time wages to make sure they meet minimum wage requirements. To be on the safe side, it’s better to use a global payroll calculator for Malta to accurately calculate costs.

Special Industry Rules

Some industries in Malta have their own wage rules called Wage Regulation Orders (WROs). These can require higher pay than the national minimum wage. If your business operates in an industry with a WRO, you must follow those rules instead of just the national minimum wage.

There are currently 32 WROs covering a wide range of sectors, including:

  • Hotels and Clubs
  • Public Transport
  • Construction
  • Agriculture
  • Food Manufacturing
  • Hospitals and Clinics
  • Private Security Services
  • Retail and Wholesale Trades

As an employer in a sector with special wage rules, you need to follow both the national minimum wage laws and your industry’s specific requirements.

Employee Benefits

Malta provides good employee benefits beyond just the minimum wage. In 2026, employees working a 40-hour week are entitled to 216 hours of paid vacation leave, which is 192 hours of basic annual leave plus 24 hours in lieu of the three public holidays that fall on weekends, giving a total of 27 days of paid vacation.

Workers with fewer hours get vacation time calculated proportionally (pro-rata), so everyone gets fair treatment regardless of how many hours they work.

Malta has also introduced rules to expand access to workplace pension plans. Employers must now offer new employees the opportunity to join an occupational pension plan, though they are not currently required to contribute financially to it; participation is the employee’s choice.

Mandatory Bonuses and Allowances

Beyond the basic wage, all employees in Malta, including those on minimum wage, are entitled to statutory bonuses and allowances paid in four installments throughout the year. For 2026, these amounts are:

  • Statutory Bonus: €135.10 paid by the end of June and another €135.10 paid between the 15th and 23rd of December.
  • Weekly Allowance: €121.16 paid by the end of March and another €121.16 paid by the end of September.

Overtime Rules

In Malta, most people work 40 hours per week. Any hours workers put in beyond that are usually considered overtime, and they should get paid extra for those hours. The amount workers get paid for overtime depends on what industry they work in. 

If an employee’s job doesn’t have a special WRO, then they get paid one and a half times their normal hourly rate for overtime. For example, if a worker normally earns €10 per hour, they would get €15 per hour for overtime work.

Employers can calculate overtime over a 4-week period instead of just one week. They can also calculate it over the shift cycle if workers work shifts

Employees have rights when it comes to working overtime. They can refuse overtime when:

  • Working overtime would make them work more than 48 hours per week on average
  • They haven’t agreed in writing to work more than 48 hours per week

Special Protection for Parents

Workers cannot be forced to work overtime:

  • If they are pregnant
  • For 12 months after they have a baby
  • For 12 months after they adopt a child

This protection applies to both mothers and fathers.

Key Takeaways for Employers

When hiring in Malta or sending employees there, remember:

  • The current minimum wage differs between minors and adults 
  • Part-time workers get the same hourly rate as full-time employees
  • Some industries have higher minimum wages than the national rate
  • Malta regularly increases wages to keep up with the cost of living
  • Workers get good benefits, including generous vacation time and pension options

An Employer of Record Makes Hiring in Malta Easy

An Employer of Record (EOR) service like RemotePeople offers simplifies the hiring process for Malta by becoming the legal employer in Malta. We take care of all wage calculations, making sure minimum wage rules are followed and industry-specific wage requirements are met. 

EOR and Professional Employer Organization (PEO) services also handle all tax deductions and employee benefits in the Malta wage payment system. This partnership lets employers hire skilled full-time, part-time, and contract workers without setting up a local business.