Hiring in Malta: Employer Costs, Labor Laws and How to Hire
Maltese employers pay 10% Class 1 social security and 0.3% to the Maternity Leave Fund on top of basic pay, and the employee pays 10%. Every employee also gets €512.52 a year in statutory bonuses and weekly allowances. On a €24,000 salary, the employer's cost is €26,984.52 a year.
Hiring someone in Malta? This guide covers what an employee costs, social security and the statutory bonuses, the labor rules that apply, income tax, work visas and the ways a company outside Malta can employ someone there.
Employer and employee contributions in Malta, 2026
Key employment rules in Malta
How to hire in Malta
Hiring in Malta comes down to two decisions: who you hire, and how you employ them.
- Find the person. Write the role, set the salary against Maltese pay levels, then source and interview candidates. You can run the search yourself with a job post, or use a placement service that delivers a shortlist.
- Choose how to employ them. A Maltese entity running payroll, an employer of record or a contractor agreement. Each option is explained below.
- Make the offer. The contract has to meet the rules in the employment table above. Many sectors also have a Wage Regulation Order with their own minimum pay and hours.
Your options for employing someone in Malta
- Maltese entity: you register a company in Malta, run payroll and pay the employer's social security contribution yourself. It suits a team of several people in Malta.
- Employer of record (EOR): a third-party provider becomes the legal employer and runs Maltese payroll for a monthly fee per employee. Your company directs the work.
- Contractor: the person invoices you as a self-employed worker. The relationship has to be genuinely independent, or it can count as employment.
Euro Remote Talent does not employ people on your behalf. We handle the placement: we find and shortlist the candidate, and you employ them through the route that fits.
What an employee costs in Malta
Take a salary of €24,000 a year in 2026, or €461.54 a week. That is inside the 10% band, below the weekly cap.
- Employer social security: €24,000 x 10% = €2,400
- Maternity Leave Fund: €24,000 x 0.3% = €72
- Statutory bonus and weekly allowance: 2 x €135.10 + 2 x €121.16 = €512.52
The employer's cost is €26,984.52 a year. The employee pays 10% social security, or €2,400, plus income tax, both withheld by the employer. Social security is capped: for someone born in 1962 or later, each side pays at most €55.93 a week, reached at a basic wage of €559.31 a week.
Minimum wage and pay
The national minimum wage is €229.44 a week in 2026 for whole-time employees aged 18 and over, or €5.74 an hour. Every employee also gets the statutory bonus and weekly allowance. The rate for 2027 will be published by the government. The average monthly basic salary of employees was €2,282 from April to June 2026, according to the National Statistics Office (NSO). See our Malta minimum wage and average salary in Malta pages.
Income tax in Malta
The employer withholds income tax from each salary payment. The rate depends on chargeable income and on the tax computation that applies: single, married or parent. The 2026 bands:
| Rate | Single | Married | Parent |
|---|---|---|---|
| 0% | €0 to €12,000 | €0 to €15,000 | €0 to €13,000 |
| 15% | €12,001 to €16,000 | €15,001 to €23,000 | €13,001 to €17,500 |
| 25% | €16,001 to €60,000 | €23,001 to €60,000 | €17,501 to €60,000 |
| 35% | €60,001 and over | €60,001 and over | €60,001 and over |
Married and parent computations have separate, wider bands for people with 1 child and with 2 or more children. The 35% rate starts above €60,000 in every computation.
Work visas
- EU Blue Card: for highly qualified workers from outside the EU. It needs an employment contract of at least 6 months and a salary of at least 1.5 times the average gross annual salary in Malta, as published by the NSO. The first application fee is €600.
- Nomad Residence Permit: for people from outside the EU who work for an employer registered in another country. They need a gross income of at least €42,000 a year.
How Euro Remote Talent can help
We do placement. We source, screen and interview remote professionals across Europe, then deliver a shortlist of 3 candidates within 21 days for a flat $6,500, or your deposit back. Prefer to run the search yourself? Post a job for $299 and reach candidates who want to work remotely.
See how placement works, post a job or book a 30-minute call. Browse remote jobs in Malta to see who is hiring there now.
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
How much does an employer pay in social security in Malta?
10% of the basic wage in Class 1 social security in 2026, plus 0.3% to the Maternity Leave Fund. The employee pays 10%. For someone born in 1962 or later, each side pays at most €55.93 a week.
What does a €24,000 salary cost a Maltese employer?
€24,000 plus €2,400 social security, €72 Maternity Leave Fund and €512.52 in statutory bonuses and weekly allowances, for €26,984.52 a year.
How long is the notice period in Malta?
1 week after 1 month of service, rising to 8 weeks after 4 to 7 years, then 1 more week a year up to 12 weeks, under article 36(5) of the Employment and Industrial Relations Act.
What are the statutory bonuses in Malta?
A statutory bonus of €135.10 at the end of June and in December, and a weekly allowance of €121.16 at the end of March and September. Every employee is entitled to both, according to DIER.
Can a company outside Malta hire someone there without a local entity?
Yes. The usual routes are an employer of record, a third-party provider that employs the person for you, or a genuine contractor agreement. Euro Remote Talent handles the placement: we find, screen and shortlist the person, and you choose the route.
Sources
- Social Security Department, Social Security Contributions (Class 1) 2026, Employed Persons. Checked 3 Nov 2026.
- MTCA, Tax Rates for Individuals, 2026. Checked 3 Nov 2026.
- Legislation Malta, Employment and Industrial Relations Act, Cap. 452. Checked 3 Nov 2026.
- DIER, Normal hours of work. Checked 3 Nov 2026.
- DIER, Overtime. Checked 3 Nov 2026.
- DIER, Vacation leave. Checked 3 Nov 2026.
- DIER, Probation period. Checked 3 Nov 2026.
- DIER, Fixed-term contracts. Checked 3 Nov 2026.
- DIER, Notice period. Checked 3 Nov 2026.
- DIER, National minimum wage. Checked 3 Nov 2026.
- DIER, Bonus and weekly allowances. Checked 3 Nov 2026.
- DIER, National and public holidays. Checked 3 Nov 2026.
- NSO, Labour Force Survey: Q2/2026. Checked 3 Nov 2026.
- Identità, Blue Card. Checked 3 Nov 2026.
- Residency Malta Agency, Nomad eligibility. Checked 3 Nov 2026.
