HR Software for Malta
Leave Policy
Maternity Leave
Pregnant employees who have worked continuously for 6 months are entitled to 18 weeks of paid leave. 4 weeks of this must be taken before the birth of the child. The employee receives 100% of her salary during this period, with the employer paying for the first 14 weeks and social security being responsible for the last 4 weeks.
The employee can extend the vacation without pay for a further 4 months.
You can use the leave module in IceHrm to manage maternity leave in Malta.
Paternity Leave
Employees are entitled to 1 day of paid paternity leave. The employee receives 100% of his salary during this period and the employer is responsible for this compensation.
The employee can extend the vacation without pay for a further 4 months.
Parental Leave
Employees are entitled to 4 months of parental leave. Both parents are entitled to this leave, which should be taken before the child turns 8 years old. Both parents can take parental leave. Parental leave is unpaid.
Sick Leave
Employees are entitled to up to 10 days (80 hours) of paid sick leave. Depending on the duration, this vacation is paid at different rates and by different payers:
| Period | Pay | Payer |
|---|---|---|
| 0 – 3 days | 100% of base salary | Employer |
| 4 – 10 days | 100% of base salary | Social Security |
Pay & Tax
Minimum Wage Requirements
The minimum wage is EUR 731.32 per month. The minimum wage can vary depending on the age of the employee. Employees are entitled to an annual cost of living allowance at rates set by the Maltese Government. For 2023, these increases will be €514.80 for full-time employees and €386.10 for part-time employees.
Please note: The Maltese government calculates a cost of living adjustment every year. This is part of the annual budget and is based on last year’s inflation figures. The COLA for 2024 is €12.81 per week.
Individual Income Tax
Personal income tax ranges from 0% to 35%. Income tax is calculated at progressive rates. Several additional factors can affect overall rates, such as: B. the household status and the number of children.
Single:
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to EUR – 9,100 | 0% |
| Up to EUR – 14,500 | 15% |
| Up to EUR – 19,500 | 25% |
| Up to EUR – 60,000 | 30% |
| Over EUR – 60,000 | 35% |
Married:
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to EUR – 12,700 | 0% |
| Up to EUR – 21,200 | 15% |
| Up to EUR – 28,700 | 25% |
| Up to EUR – 60,000 | 30% |
| Over EUR – 60,000 | 35% |
Parents:
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to EUR – 10,500 | 0% |
| Up to EUR – 15,800 | 15% |
| Up to EUR – 21,200 | 25% |
| Up to EUR – 60,000 | 30% |
| Over EUR – 60,000 | 35% |
Payroll Cost
Employer costs are generally estimated at approximately 10.30% of the employee’s salary. The state allowances (maternity allowance and statutory allowances) are added to these employer costs.
- Social Security – 10%*
- Maternity Trust Fund – 0.30%
- Semi-annual state allowance: weekly allowance, payable at the end of March and September – EUR 121.16
- Semi-annual state allowance: Statutory allowance, payable at the end of June or December – EUR 135.10
*The maximum amounts of social security contributions are calculated based on the employee’s weekly salary and the number of Mondays per month. For employees earning more than EUR 515.99/week, social security contributions are up to EUR 206.40 for months with four Mondays and EUR 258 for months with five Mondays.
Overtime Pay & Maximum Hours
The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday. The maximum weekly working time can be extended to up to 48 hours.
IceHrm employment contracts provide for a maximum working time of 48 hours, although the standard working time can be considered 40 hours. Hours worked beyond this period are considered overtime.
Pay for overtime is mandatory. Hours worked outside of standard working hours are considered overtime. Employees may work a maximum of 48 hours per week unless the employee has given their consent in writing. Employees receive compensation for additional hours:
- 150% of the hourly rate for work from Monday to Saturday.
- 200% of the hourly rate for work on Sundays and public holidays.
Termination
Termination Requirements
Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps in certain termination cases.
Terminations in Malta can be complex. In Malta, employers cannot terminate at will outside of the probationary period and the termination must be for a valid reason.
Proper terminations include:
- Voluntary by the employee
- By mutual agreement
- Unilaterally by the employer due to:
1. Probation period
2. Objective reasons
3. Dismissal for disciplinary reasons
4. Performance due to unsuitability for the position - When the contract expires
Notice Period
The notice period is at least one week and increases depending on the length of the employment relationship.
- One week if the length of service is less than 6 months
- 2 weeks if you have been with the company for less than 2 years
- 4 weeks if you have been with the company for less than 4 years
- 8 weeks if you have been with the company for less than 7 years
- If you have been with the company for more than seven years, an additional 1 week for each additional year of service, up to a maximum of twelve weeks
Severance for Employees
There are no legal requirements for severance pay in Malta. During the notice period, the employee receives the usual wage.
Statutory Time Off
Paid Time Off
Full-time employees are entitled to 24 workdays of paid time off (PTO). However, if a holiday falls on a weekend, employees are entitled to an additional day of PTO.
In 2022, four public holidays fall on a weekend, so employees are entitled to 28 days of vacation in the current year.
PTO is accrued monthly at 2 days per month, and employees are entitled to annual leave after working for one month.
Part-time employees are entitled to the average number of daily working hours per week multiplied by 24.
Public Holidays
There are 14 national holidays in Malta.
National holidays include:
- New Year’s Day
- Feast of St Paul’s Shipwreck
- Feast of St Joseph
- Freedom Day
- Good Friday
- Workers’ Day
- Sette Giugno
- Feast of St Peter and St Paul
- Feast of the Assumption
- Victory Day
- Independence Day
- Immaculate Conception
- Republic Day
- Christmas Day
Onboarding
Onboarding
Onboarding takes 5 working days. The documents must be completed 1 day before the start date.
Additional Info
Employment Contract Details
The contracts must be written in English. They must be in writing and signed by both parties.
A contract must contain:
- Surname
- Start date
- Length of employment
- Job descrption
- Conditions for Termination
Probation Period
The probationary period is mandatory. The minimum probationary period is 3 months and the maximum probationary period is 6 months. For administrative, technical, managerial or executive employees with a salary exceeding twice the annual minimum wage, the probationary period may be extended to six months and extended for an additional six months (a total of one year).