Understanding market competitive salaries in Malta is crucial for both employers and employees. A competitive salary attracts top talent and motivates existing staff, while an under-market offer can lead to recruitment difficulties and high turnover.

Factors Influencing Market Competitiveness

Several factors influence what constitutes a competitive salary in Malta:

• Industry: Certain industries, like finance, gaming, and technology, typically offer higher salaries due to higher skill demands and a competitive talent pool.
• Job Role: Managerial positions and specialized roles naturally command higher salaries compared to entry-level or administrative jobs.
• Experience & Qualifications: Salaries increase with experience and relevant qualifications. A software developer with five years of experience can expect a higher salary than a recent graduate.
• Location: While Malta is a relatively small island nation, there might be slight salary variations between urban centers like Valletta and Sliema, and smaller towns.

Researching Competitive Salaries

There are several ways to research competitive salaries in Malta:

• Salary Surveys: Reports from reputable recruitment agencies and consultancies provide salary benchmarks for various job roles and industries.
• Job Boards: Many job boards in Malta list salary ranges alongside job postings. This provides valuable insights into what employers are offering for specific positions.
• Salary Benchmarking Tools: Online tools allow you to compare salaries and benefits across different positions in Malta.

In Malta, the government sets a national minimum wage, with potential adjustments for specific sectors.

National Minimum Wage

The National Minimum Wage National Standard Order applies to the minimum wage. The wage is set for full-time employees on a weekly basis, with different rates depending on age:

• 18 years and over: €213.54 per week (as of January 1, 2024)
• 17 years old: €206.76 per week (as of January 1, 2024)
• Under 17: Minimum wage not specified, but wages must be commensurate with experience and duties.

The minimum wage for part-time employees is calculated pro rata based on the hourly rate of a comparable full-time employee in the same category. The minimum wage is reviewed and adjusted annually based on the inflation rate.

Sectoral Minimum Wages

In some sectors, specific minimum wages may be set higher than the national minimum wage. These are established through Wage Regulation Orders (WROs) issued by the government based on recommendations from the Employment Relations Board. If a WRO applies to an employee's sector, the minimum wage set in the WRO takes precedence over the national minimum wage.

Additional Considerations

Wages can also be determined through collective bargaining agreements between employers and employee unions. These agreements must ensure wages are not lower than those set in the national minimum wage order or relevant sectoral WRO. A mandatory cost-of-living allowance is periodically added to all wage levels, including minimum wages, to account for inflation.

Maltese employees enjoy a combination of mandatory government bonuses and allowances alongside potential benefits offered by their employers. Here's a breakdown of what you can expect:

Statutory Bonuses

In Malta, all employees (full-time, part-time, and pensioners) are entitled to receive a statutory bonus twice a year. This bonus is mandated by the government and paid out by employers. The amount is fixed at €135.10 and is paid:

• In June, covering the period from January to June.
• In December, covering the period from July to December.

Part-time employees receive a prorated bonus based on the number of hours worked during the respective period.

Statutory Weekly Allowances

Along with the bi-annual bonuses, Maltese employees are also entitled to a statutory weekly allowance, paid out every six months. The allowance amount is €121.16 and is paid:

• In March, covering the period from October to March.
• In September, covering the period from April to September.

Similar to the bonus, part-time employees receive a proportional amount of the weekly allowance based on their work hours.

Employer-Specific Benefits

While statutory bonuses and allowances provide a baseline level of financial security, many employers in Malta offer additional benefits to attract and retain talent. These benefits can vary widely depending on the industry, company size, and job position. Some common examples include:

• Performance-based bonuses: These bonuses reward employees for exceeding expectations or achieving specific goals.
• Health insurance: Many companies offer health insurance plans that cover employees and their dependents.
• Pension contributions: Employers may contribute to employee pension plans, helping them save for retirement.
• Paid time off: In addition to mandatory vacation days, some employers offer additional paid time off for sick leave, personal leave, and bereavement.
• Professional development: Companies may provide financial assistance or time off for employees to pursue professional development opportunities.

In Malta, payroll cycle practices revolve around two main aspects: frequency and transparency.

Frequency of Payment

There is no legal mandate for a specific pay cycle in Malta. However, the common practice is for employers to pay their employees monthly. Some employers may opt for a four-weekly pay cycle. Regardless of the chosen cycle, employers are required to be transparent with their employees. This involves providing them with a clear and written schedule outlining their pay dates.

Transparency in Payroll

Maltese employers are obligated to provide their employees with a payslip for each payment. This payslip should detail the following:

• Gross salary
• All deductions made, including social security contributions, income tax, and any other applicable deductions
• Net salary paid to the employee