Employment in Malta is governed by the Employment and Industrial Relations Act (Cap. 452) and its subsidiary regulations, with sector Wage Regulation Orders adding industry-specific minimums. Here is what employers need to know about leave, pay, tax and ending employment.
Minimum leave is set by the Organisation of Working Time Regulations, the Protection of Maternity (Employment) Regulations and the Work-Life Balance for Parents and Carers Regulations. Entitlements for part-time employees are calculated pro rata.
Four weeks and 32 hours a year, based on a 40 hour week. Full-time employees also get an extra day for each public holiday that falls on a weekend or rest day.
The first 14 weeks are paid in full by the employer. The remaining weeks are covered by a social security benefit rather than wages.
Working days without loss of wages for fathers or second parents, taken immediately after the birth or adoption. No length-of-service requirement.
Per parent, per child, until the child turns 8, after 12 months' service. Two months are paid at the social security sickness benefit rate.
Six weeks must be taken immediately after the birth, and four weeks are normally taken just before the expected date of birth. The remaining balance can be taken before or after these periods. Pregnant employees are also entitled to paid time off for ante-natal examinations.
Set up vacation leave in hours, maternity, paternity and parental leave in IceHrm, each with its own accrual, carry forward and approval rules, including pro-rata entitlements for part-time staff. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Malta sets a weekly national minimum wage, adjusted every January for the cost of living. Many sectors have Wage Regulation Orders that set higher minimums and specific overtime rates.
Monthly equivalent of the weekly national minimum wage for full-time adult employees in 2026. Lower rates apply to 17-year-olds and under-17s.
Including overtime, averaged over a reference period. The standard full-time week used for leave calculations is 40 hours.
Employees on the minimum wage get €3 a week more after 1 year with the same employer and a further €3 after 2 years.
Employers must pay whole-time employees the statutory bonuses and income supplements set by the government each year. The bonuses are paid in two instalments, in June and December. Employees with less than a year's service receive a pro-rata amount.
Overtime premiums are set by the applicable Wage Regulation Order or the employment contract. Qualifying overtime pay can be taxed at a reduced rate of 15% on the first €10,000 for employees whose basic weekly wage does not exceed €375.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so overtime and the 48 hour average are based on what was actually worked. Time & attendance →
Malta taxes income at progressive rates, with separate single, married and parent rate tables. Under the Final Settlement System (FSS), employers withhold tax and social security from each salary payment and pay them to the Malta Tax and Customs Administration.
| Chargeable income | Rate | Subtract |
|---|---|---|
| €0 – €12,000 | 0% | €0 |
| €12,001 – €16,000 | 15% | €1,800 |
| €16,001 – €60,000 | 25% | €3,400 |
| €60,001 and over | 35% | €9,400 |
To use the table, multiply chargeable income by the rate and subtract the amount shown. From 2026, parents of children under 18 (or under 23 in full-time education) may qualify for more favourable bands.
Employers and employees each pay social security contributions of 10% of the employee's basic weekly wage, subject to weekly minimum and maximum amounts that are updated every January.
Of the basic weekly wage, matched by a 10% employee contribution withheld from pay.
For employees born on or after 1 January 1962, reached at annual salaries of about €29,084. The cap is €49.04 for employees born earlier.
Build Maltese pay the way you already structure it, with your own salary components, deductions and formula columns, such as a capped social security column. Want to know how well IceHrm handles payroll calculations for Malta? Contact us or see Payroll →
After probation, an employer can end an indefinite contract only for a good and sufficient cause or on grounds of redundancy. Employees can resign without giving a reason, provided they give notice.
| Continuous service | Notice |
|---|---|
| More than 1 month, up to 6 months | 1 week |
| More than 6 months, up to 2 years | 2 weeks |
| More than 2 years, up to 4 years | 4 weeks |
| More than 4 years, up to 7 years | 8 weeks |
| More than 7 years | 8 weeks + 1 week per extra year (max. 12 weeks) |
There is no general statutory severance pay for redundancy in Malta. Check the applicable collective agreement or contract for any additional entitlements.
Malta has 14 national and public holidays. When one falls on a weekend, full-time employees receive an extra day of vacation leave instead.
Load Malta's holiday calendar into a leave group so the right days are blocked out automatically, and add the extra vacation days due when a holiday falls on a weekend. Holiday calendars →
Employees can be hired on indefinite or fixed-term contracts, full-time or part-time. Employees on fixed-term contracts must not be treated less favourably than comparable permanent staff.
Under the Transparent and Predictable Working Conditions Regulations, the contract and the key terms must be given to the employee between the first working day and the seventh calendar day. The rest of the required information must follow within one month.
Send contracts for e-signing within the first week, store them on the employee's record, and track onboarding and probation end dates with task lists so nothing is missed. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Malta, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Malta? Talk to us.
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