Employer of recordMalta

What is an Employer of Record?

An Employer of Record (EOR) allows you to hire employees in another country without setting up a local legal entity. Agility EOR becomes the legal employer of your workers, taking responsibility for employment compliance, payroll, and HR administration, while you retain full control over the employee’s day-to-day work.

What Agility EOR manages

As the Employer of Record, Agility EOR is responsible for:

• Managing the onboarding process and ensuring all employment requirements are in place before the employee starts
• Providing locally compliant employment contracts
• Processing payroll and ensuring salaries are paid accurately and on time
• Issuing payslips and handling tax and social security filings
• Managing statutory HR matters such as maternity and paternity leave, annual leave, sick pay, and other local entitlements
• Ensuring employees are employed fairly and in line with local employment laws

What your company manages

As the client company, you continue to:

• Recruit and select the employee
• Manage the employee’s day-to-day responsibilities and performance
• Support the employee’s development and integration into your business
• Follow Agility’s guidance on local employment laws and best practices
• Settle payroll invoices with Agility EOR on time

Benefits of using an Employer of Record (EOR)

Using an Employer of Record offers several practical advantages:

• Faster, simpler hiring without the need to establish a local legal entity
• Reduced compliance risk, with employment obligations managed by local experts
• More time and internal resources to focus on growing your core business

Employing the worker directly from an overseas company

Pros: May appear cost-effective for short-term arrangements.

Cons: Only compliant if the company registers in Malta for tax and social security purposes and meets all local employer obligations. Ongoing compliance without local expertise carries significant legal and financial risk.

Using an Employer of Record in Malta

Pros: The fastest and lowest-risk way to hire in Malta. The EOR manages contracts, payroll, tax, social security, and compliance. Particularly well suited for smaller teams or companies testing the Maltese market.

Cons: For larger teams or long-term expansion, an EOR may become less cost-efficient compared to establishing a local entity.

Setting up a Maltese legal entity

Pros: For businesses planning a long-term presence or larger workforce, this can be the most cost-effective option and offers full operational control.

Cons: Entity setup requires time, local expertise, and ongoing administrative effort. Employers must stay compliant with Maltese employment, tax, and payroll regulations.

Hiring an independent contractor in Malta

Pros: Can work well for genuinely independent workers providing services to multiple clients with a high degree of autonomy.

Cons: If a contractor works exclusively for your business or operates under employee-like conditions, there is a risk of misclassification under Maltese law, which can result in backdated liabilities and legal exposure.

Yes, but only if they're genuinely self-employed and operating independently. Contractors must be registered with the Maltese authorities and manage their own tax and social security. If a contractor works exclusively for one company or under employee-like conditions, misclassification risk applies and can result in fines, back pay, and legal exposure.

Setting up requires incorporation through the Malta Business Registry, along with registration for tax and — where applicable — as an employer for payroll and social security. Ongoing obligations include payroll reporting, statutory filings, and employment law compliance. For companies wanting to hire quickly, an Employer of Record in Malta offers a faster alternative without entity setup.

Hiring in Malta comes with specific legal responsibilities. Compliance ensures employees receive their full entitlements — covering pay, leave, working hours, and statutory benefits — and protects your business from penalties, backdated liabilities, and employment disputes.

With Agility EOR as your Employer of Record in Malta, we handle all payroll deductions, income tax withholding, employer and employee social security contributions, payslip issuance, and submissions to the Maltese authorities — ensuring full compliance so you can focus on running your business.

Agility EOR handles the legal employment framework, while you manage your team and their daily tasks. Any disciplinary or performance matters are handled in coordination with Agility to ensure all actions are taken in line with Maltese employment law.

Employers: Social security contributions (10% of basic wage, subject to statutory caps)

‍Employees: Progressive income tax (0%–35%) and employee social security contributions (10% of basic wage, subject to statutory caps)

Yes. Employees hired through an Employer of Record in Malta enjoy full legal protection, with compliant local contracts and all statutory entitlements — including paid annual leave, public holidays, sick pay, and maternity and paternity leave.

Using an Employer of Record in Malta helps ensure your employment arrangements remain compliant with local HR, payroll, and employment regulations.

Agility EOR manages employment contracts, payroll processing, tax withholding, social security contributions, and statutory HR requirements in line with Maltese law. This reduces the risk of errors, missed filings, or non-compliance as regulations change.

By handling the legal and administrative side of employment, an Employer of Record allows your business to focus on managing performance and day-to-day operations, while maintaining confidence that HR and payroll compliance in Malta is being handled correctly.

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