Guide to employment, payroll and benefits in

Malta

Rivermate offers complete payroll, benefits and compliance services for

Malta

01. Overview

Last updated: 

August 19, 2021

Currency
Euro
Capital
Valletta
Ease of doing business
66.1
Language
Maltese
Population
441543
GDP growth
6.42%

02. Grow your team in

Malta

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Malta

, particularly if you don't have established local relationships. You can hire employees in

Malta

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Malta, formally known as the Republic of Malta and formerly Melita, is a Mediterranean island nation in southern Europe that consists of an archipelago. It can be found 80 kilometers south of Italy, 284 kilometers east of Tunisia, and 333 kilometers north of Libya. Malta is the world's tenth smallest nation in terms of area and fourth most densely populated sovereign country, with a population of around 515,000 people spread over 316 km2. Valletta, the country's capital, is the smallest national capital in the European Union, with an area of 0.61 km2. Maltese is the official and national language, and English is the second official language. Maltese is derived from Sicilian Arabic, which originated during the Emirate of Sicily. For centuries, Italian and Sicilian acted as official and cultural languages on the island, with Italian serving as an official language in Malta until 1934 and a majority of the current Maltese population speaking Italian at least conversationally. Since approximately 5900 BC, Malta has been inhabited. With a succession of forces contesting and ruling the islands, including the Phoenicians and Carthaginians, Romans, Greeks, Arabs, Normans, Aragonese, Knights of St. John, French, and British, its position in the heart of the Mediterranean has traditionally given it great strategic significance as a naval base. The majority of these outside forces have left their imprint on the country's ancient culture. Malta became a British colony in 1813, and it served as a shipping port and headquarters for the British Mediterranean Fleet. During World War II, it was besieged by the Axis powers and served as a vital Allied base for operations in North Africa and the Mediterranean. The Malta Independence Act of 1964, passed by the British parliament, granted Malta independence from the United Kingdom as the State of Malta, with Queen Elizabeth II as its head of state and queen. In 1974, the nation became a republic. Since independence, it has been a member of the Commonwealth of Nations and the United Nations, and in 2004 it entered the European Union; in 2008, it joined the eurozone monetary union. Malta has had Christians since the early Christian era, though it was mainly Muslim during the period of Arab rule, when Christians were tolerated. With Roger I's Norman invasion of Malta in 1091, Muslim rule came to an end. Malta is a tourist destination with its warm climate, various recreational areas, and architectural and historical monuments, including three UNESCO World Heritage Sites: al Saflieni Hypogeum, Valletta, and seven megalithic temples that are some of the oldest free-stand structures in the world.

04. Public holidays

05. Types of leave

Paid time off

After one year of full-time employment, an employee is entitled to 192 hours of basic leave plus 24 hours in place of the three public holidays that fall on weekends.So long as there is an agreement with the employer, an employee can carry over up to 50% of their paid leave to the next year.

Public holidays

Malta recognizes 14 public holidays.

Sick days

The Wage Regulation Order regulates sick leave (WRO). If an employee is not protected by the WRO, he or she is entitled to two weeks of paid sick leave each year. After the two weeks, an employee may be eligible for a Social Security illness payment.To use sick leave, you must produce a medical certificate.

Maternity leave

In Malta, maternity leave lasts 18 weeks and begins four weeks before the due date. It must be taken at least 6 weeks after the birth. For the first 14 weeks, the employer is liable for paying 100% of the salary.

Paternity leave

There are no legal mechanisms in place for paternity leave.

Parental leave

Until the kid reaches the age of eight, parents are entitled to four months of paid leave for the birth of a child, adoption, fostering, or general care.To be eligible, an employee must have worked for at least 12 months in a row.

Other leave

Employees who are not protected by the Wage Regulation Order are entitled to one working day of bereavement leave.For employees who are not protected by the Wage Regulation Order, marriage leave is two working days.

06. Employment termination

Termination process

In Malta, an employee may be terminated for cause, redundancy, or retirement age. Employers are required to deliver an employment certificate to an employee who has completed at least one month of employment upon request. The employment certificate must include dates of employment and a description of duties. The cause for termination must also be given if the employee demands it.

Notice period

The notice period is determined by the duration of the employment. There is no notice period required for employment of less than one month. For employment lasting between one and six months, at least one week's notice is required. Minimum two weeks' notice is required for employment lasting six months to two years. A minimum of four weeks' notice is required after two to four years of employment. A minimum of eight weeks' notice is required after four to seven years of employment. A minimum of nine weeks' notice is required after seven to eight years of employment. A minimum of ten weeks' notice is required after eight to nine years of employment. There must be at least eleven weeks' notice after nine to ten years of employment. There must be a minimum of twelve weeks' notice for employees who have worked for more than ten years. Paying the employee in lieu of notice is possible. However, if an employee is on notice and chooses not to work or resigns without giving notice, the employee is required to pay the employer 50% of the wages earned during the notice period.

Severance pay

There are no statutory laws on severance pay.

Probation period

The probation period is 12 months. During this time period, an employee who has worked for at least one month may be dismissed with one week's notice. While an employee and employer can agree on a shorter probation period, the agreement is binding and must be followed.

07. Working hours

General

In Malta, the standard work week is between 40 and 48 hours, depending on the industry. Employers may require employees to work more than 48 hours per week with their consent. Employers are prohibited from retaliating against an employee who declines to work overtime. If an employee consents to work more than 48 hours per week, the employer is required to provide the required daily and weekly rest periods. Employees have the right to withdraw consent for work exceeding 48 hours per week.

Overtime

Overtime is regulated in the majority of industries in Malta by the Wage Regulation Order (WRO). Employers who are not covered by the WRO must compensate employees who work more than 40 hours per week at a rate of 50% above the regular rate, averaged over a four-week period or shift cycle determined by the employer.

08. Minimum wage

General

Malta recently increased its minimum wage by 155 Euros per month beginning in 2020. Employees must now earn 777 Euros per month. Employers must pay their employees in cash or with a check that can be cashed at a Maltese bank. Employees and employers usually agree on a salary payment schedule, such as weekly, biweekly, or monthly.

09. Employee benefits

General

The government offers universal healthcare, and some businesses provide additional private healthcare insurance.

All workers working 40 hours per week are entitled to 192 hours of paid annual leave, which equates to about four weeks and four working days of paid time off. Sick leave is also provided in Malta in accordance with the appropriate Wage Regulation Order for certain industries. Employees typically get two weeks of sick leave each year, as long as the employer obtains a medical certificate.

One distinctive feature of Malta's benefit rules is that both male and female employees are entitled to four months of unpaid parental leave for the birth, adoption, foster child, or legal custody of a kid until the child reaches the age of eight. To be eligible, all workers must have worked for your business for at least a year.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Malta

to hire a team takes time, money, and effort. The labor law in

Malta

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Malta

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Malta

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Malta

via our Employer of Record / PEO solution.

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