Key Takeaways 

  • Malta PEOs are responsible for all tax management, so employers benefit from 0%–35% progressive income tax, 35% possible corporate tax after imputation, VAT files, and PAYE deduction, as per local rules.
  • PEOs manage the entire recruitment and onboarding process, starting with finding suitable people, screening them, creating bilingual agreements, and registering them with Jobsplus for a smooth hiring process.
  • Under the Employment and Industrial Relations Act, Maltese PEOs provide 24 days of paid holidays, 14 sick days, 18 weeks of maternity leave, and 10 paternity days of paid time off to all workers.
  • Remote People links businesses with Malta PEO providers, so they can easily onboard staff, follow the law, and get HR help within just 48 hours.

Malta, which is in the EU and close to the Mediterranean, is a convenient starting point for Europe, North Africa, and the Middle East. Having a population of 563,000, the country is expected to increase by 4.0% in 2025 and achieve a GDP of over USD 25 billion. Malta’s main sources of income are financial services, the gaming industry, tourism, fintech, and tech startups, thanks to its multilingual workforce.

Sticking to Malta’s strict work rules, taxes, and regulations can be tricky for businesses from other countries. Every company should strictly follow EIRA (Employment and Industrial Relations Act) and also report to Jobsplus and the Inland Revenue Department when hiring local workers. If a business lacks a local identity, it has to deal with extra difficulties when it comes to taxes or legal issues.

Export CategoryExport Value (USD)
Refined Petroleum $2.3 billion
Integrated Circuits$1.8 billion
Planes, Helicopters & Spacecraft $1.2 billion
Packaged Medicaments$1.1 billion
Electrical Transformers $890 million

A Malta PEO takes care of hiring, payroll, taxes, and contributions, making sure the company complies with local laws. Therefore, international companies can become stable in a new country without having to create a local organization.

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What is a PEO?

A PEO offers outsourced human resources services to companies that need help. Being a co-employment model, the PEO serves as the legal employer for the company’s workers in various critical areas. Some of the services offered are wage management, employee benefits setup, induction process for new hires, tax submission, and adherence to legal standards.

Under this model, the client and the PEO are responsible for some common employer duties. The client looks after daily business activities and employees’ performance, while the PEO carries out HR activities and ensures compliance. 

It is perfect for those companies hoping to enter foreign markets by avoiding the need to set up a completely new legal entity there.

Start hiring with a Malta PEO

Let us handle the complexities of hiring, compliance, and payroll in Malta while you focus on growing your team.

  • Hire employees in Malta with a Malta PEO
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in Malta

👉 Get Your Customized New Malta PEO Proposal Today!

Why Choose a PEO in Malta?

Registering a business in Malta requires you to deal with the Malta Business Registry (MBR) and the Commissioner for Revenue. Employers have to abide by EIRA, laws set by local governments, and social security standards. Meeting these requirements may be both time-consuming and difficult.

Collaborating with a PEO in Malta eliminates the need for companies to set up a local office to hire workers in the country. By using a Malta PEO, companies don’t have to worry about complying with labor laws, hiring new employees, or payroll and tax tasks. This helps the company avoid risks and speed up its ability to work and grow in Malta.

Services Offered by Malta PEOs

Malta PEOs can help with many HR and employment matters that are in line with the local laws and regulations.

Payroll Management

PEOs in Malta manage the process of figuring out employee salaries, processing the payments, adding to social security, and collecting income taxes. They guarantee that companies comply with relevant regulations like the Employment and Industrial Relations Act and Social Security Act, and follow the directions from Jobsplus Malta and the Commissioner for Revenue. Taxes in Malta are progressive, and both employees and employers are required to contribute to social programs.

Employee Benefits Administration

Malta PEOs make it easier for companies to recruit and keep talented employees through the careful management of benefits. They make sure that workers’ rights are protected under EIRA. These rights include:

  • 24 days of paid annual leave
  • 14 paid sick days
  • 18 weeks of maternity leave
  • 10 paid days of paternity leave

PEOs oversee these activities, supporting relationships between workers and increasing job satisfaction.

Tax Compliance

Corporate taxes, VAT, and personal income tax are part of Malta’s tax system. Malta applies a 35% corporate tax (typically 5% because of imputation), tax rates that range from 0% to 35% for personal income, and 18% standard VAT (lower rates are available too). 

Malta has a Final Settlement System (FSS), which replaced PAYE, where employers must deduct income tax and social security contributions from employees’ salaries. PEOs manage all the needed paperwork so that companies comply with tax laws and regulations.

Recruitment and Onboarding

PEOs help organizations find and hire competent people in Malta. Using their local connections and understanding the market, they find people who fit the company’s demands and ideals. This local assistance guides hiring, shortens the process, along with finding the right employee for the job.

With selected candidates, PEOs supervise the process, which covers background screening, making employment contracts, and ensuring employees’ registration with the Department of Social Security.

Employment Contracts and Terminations

Contracts drawn up by PEOs meet legal standards because they are guided by EIRA. They outline significant aspects such as work timings, wages, time off, and the give-and-take period when employees must give the employer notice and vice versa. For indefinite contracts, legislation requires a set notice period depending on the years of service.

  • 1-6 months of service: 1 week notice period
  • 6 months-2 years of service: 2 weeks notice period
  • 2-4 years of service: 4 weeks notice period
  • 4-7 years of service: 8 weeks notice period. 

Before terminating an indefinite contract, employers must have a proper and justified reason for redundancy. PEOs deal with these complex tasks to avoid any violations and reduce legal concerns.

Advantages of Using a PEO in Malta

Businesses that want to establish or widen their presence in Malta can benefit from partnering with a PEO.

  • Cost savings: When you work with a PEO, you don’t require a legal entity in Malta, which can reduce your overall business expenses. Firms can avoid the expenses required for company registration, local administrative duties, and complying with regulations. This helps companies use their resources more wisely and concentrate on increasing their share in the market. PEOs in Malta can also support several clients from many sectors. By using this model, companies can realize lower costs for their lists of benefits, payroll operations, and insurances, making their finances stronger as they grow.
  • Speed to Market: PEOs accelerate working in Malta, as they manage HR and ensure businesses follow rules, so they can get started in only 48 hours, much faster than the regular 2-10 weeks for incorporation. Such efficiency allows companies to speed up recruitment, quicken the onboarding process, comply with regulations, and immediately take advantage of new opportunities in the European market.
  • Risk mitigation: Both Maltese laws and EU regulations are used to form the framework of employment law. A mistake in classifying workers, handling benefits, or filing taxes can lead to big fines. PEOs protect organizations from such risks by always being informed about employment rules and guaranteeing all necessary legal compliance. As a result, businesses can protect themselves from legal problems.
  • Focus on Core Business Activities: A Maltese PEO helps companies manage their HR tasks so they can put more attention on their main business activities. As administrative tasks like payroll, compliance, and managing benefits are taken care of, leadership has more time to work on planning, new ideas, and efforts to grow in the market. Thanks to HR professionals who are aware of the laws, organizations can confidently improve in the Maltese region.

How RemotePeople.com Facilitates PEO Services in Malta

RemotePeople.com is focused on linking companies with dependable PEO services in Malta. With the support of qualified local partners, we can provide companies with HR solutions that fit their unique business needs and rules.

We guide our clients through the PEO engagement process, giving advice on selecting the provider, negotiating agreements, and continuing to monitor their performance.

Thanks to our successful PEO collaborations, we give our clients the highest standard of quality and satisfaction. Businesses can trust us to link them with a PEO that will handle employment procedures and rules effectively in Malta.

Steps to Engage a PEO in Malta

Hiring a PEO in Malta tends to involve a well-organized process that usually takes this form:

Initial Consultation

The first thing to do when using a PEO in Malta is to have an initial consultation. Here, the company defines its aims, including bringing in local employees, overseeing paychecks, and making sure its HR is fully aligned with the rules. The PEO reviews all these matters and shows how it can assist the company with its objectives in Malta. 

The PEO advises on how to follow Maltese employment laws, gives needed documents, and explains the proper way to hire and manage employees. As a result, companies can decide wisely and plan their actions realistically before moving forward.

Service Agreement

The following step in the process is for both parties to sign a service agreement once they have agreed. This contract explains the tasks to be completed, who will handle them, the costs, and how the two sides will partner. It outlines which activities will be handled by the Malta PEO, for instance, payroll processing, benefits administration, ensuring tax compliance, and reporting to the authorities, and what the client company is responsible for.

A properly written service agreement helps both parties and ensures openness and efficiency in their work. It establishes the required level of service, the delivery timeline, and the method of communication, as well as ways to settle disputes. Above all, it guarantees that all HR and employment activities will follow the rules required by Maltese labor laws.

Onboarding Process

When the agreement is signed, the onboarding process starts. To start, the PEO collects details about employees, prepares contracts that follow the law, and organizes the payroll according to Maltese laws. They also look after the registration of staff members with the Department of Social Security and set up the right tax code for PAYE deductions with the Commissioner for Revenue.

As part of the onboarding process, the PEO makes sure that all the company’s rules and goals are explained to new employees in collaboration with the client company. It allows the organization to bring new employees in smoothly. After onboarding, the PEO gives continuous HR support, ensures up-to-date compliance rules, and handles employee-related issues.

The Difference Between PEO and EOR in Malta

The terms Professional Employer Organization (PEO) and Employer of Record (EOR) are sometimes used interchangeably, even though they represent different work service models in Malta.

PEOs and their clients enter into a co-employment relationship. Both the PEO and the client have to handle certain employer tasks together. PEOs are in charge of fulfilling administrative responsibilities, including processing pay, social security, benefits payments, and abiding by Maltese employment policies. Still, the client company holds the responsibility for managing daily operations, supervising its employees, and deciding on important strategies.

On the other hand, the EOR takes on the legal responsibilities for the company’s employees in Malta. By this design, the EOR is obliged to seek contracts for staff, register workers with the necessary authorities, handle taxes and salaries, and handle terminations. While the client is in charge of the employee’s duties and results, the company operates without the legal duties of an employer in Malta.

Partner With a PEO in Malta To Expand Your Business Seamlessly

Malta offers a strategic gateway to Europe, North Africa, and the Middle East, making it an ideal base for global expansion. However, navigating local tax codes, labor laws, and employment compliance can be complex without a local presence. A PEO can simplify your entry into this vibrant market.

Looking for a trusted PEO provider in Malta? Remote People connects businesses with experienced PEO partners who manage recruitment, payroll, HR compliance, and tax reporting. Contact us today to onboard your team in Malta in as little as 48 hours!