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Employer of Record Malta
Hire staff and expand your business in Malta with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Malta designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Malta. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Malta takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Malta
A Brief Guide to Malta
Malta is a small archipelago in the Mediterranean Sea, known for its rich history, beautiful beaches, and unique architecture. The country’s strategic location has made it a melting pot of diverse cultures throughout history. Malta is a parliamentary republic and a member of international organizations, such as the European Union, the Schengen Area, and the United Nations.
Category | Information |
Location | Southern Europe |
Capital | Valletta |
Official Language | Maltese, English |
Area | 316 square kilometers |
Population | Approximately 515,000 |
Currency | Euro (EUR) |
Major Cities | Valletta, Mdina, Sliema, Saint Julian’s |
GDP (2021) | $14.54 billion USD |
Major Industries | Tourism, electronics, pharmaceuticals, financial services |
Business Culture
Business Culture in Malta
In Malta, business culture values personal relationships, professionalism, and respect. Timeliness, appropriate attire, and engaging in small talk are important. Decision-making can be hierarchical, and trust is essential in business dealings. Maltese professionals appreciate expertise and thorough preparation for meetings.
Following proper business etiquette, such as exchanging business cards and using proper titles, is expected. Success in Maltese business culture requires adaptability, respect, and a focus on relationship-building.
Payroll and Taxes
Payroll and Taxes in Malta
There is no statutory requirement to pay a 13th/14th month bonus in Malta.
Employee Taxation
In Malta, employee income tax rates are progressive, with higher income levels subject to higher tax rates. They are also dependant on the status of the employee:
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% |
Employer Taxation
Employers in Malta are also responsible for various employer costs, which include:
Fund Type | Percentage |
Social Security | 10% |
Industrial Training Levy | 0.3% |
Semi-annual government bonus: Weekly allowance, payable at the end of March and September | EUR 121.16 |
Semi-annual government bonus: Statutory bonus, payable at the end of June and December | EUR 135.10 |
Pension and Healthcare
Malta Pensions
Funded through Social Security contributions, Malta operates a Contributory Retirement Pension scheme that aims to provide retirees with a maximum pensionable income equivalent to two-thirds of their pre-retirement salary. The primary pension plan, referred to as the “Two-thirds pension,” offers varying pension rates based on the average contributions made by the individual.
Healthcare in Malta
Malta’s public healthcare system, known as the Maltese National Healthcare Service, provides comprehensive medical services to its residents, including primary care, specialist services, hospital care, prescription medications, dental care, maternity care, and mental health services. The healthcare system aims to ensure equal access to essential healthcare services for all residents, regardless of their financial status or geographical location.
Both employees and employers contribute to the system through a percentage of their salaries. This mandatory contribution is collected by the Maltese tax authorities and allocated to the healthcare system.
Employment Law
Employment Law in Malta
Relevant Legislation: Maltese employment law is governed by various pieces of legislation, including:
- Employment and Industrial Relations Act (EIRA)
- Occupational Health and Safety Authority Act
- Equality for Men and Women Act
Employment Contracts: Maltese employment contracts should be in writing and include essential information such as duration of employment, working hours, salary, and termination notice periods.
Working Hours: The standard maximum working time in Malta is 40 hours per week, or 8 hours per day. Overtime work is regulated, with compensation for extra hours.
Leave: Employees in Malta are entitled to various types of leave, including paid annual leave (minimum of 24 working days per year), maternity leave, paternity leave, sick leave, and family care leave.
Overtime:
In Malta, overtime work is regulated by law and collective agreements. In general, Maltese law stipulates that overtime pay should be at least 1.5 times the regular hourly wage for the first eight hours of overtime work per week and 2.0 times the regular hourly wage for additional hours of overtime work.
Termination: Termination of employment in Malta requires proper notice, which varies depending on the length of employment. Employers can terminate an employee’s contract if there is a just cause, such as poor performance, misconduct, or redundancy. Employers must provide a written explanation for the termination based on just cause. Unjustified termination can lead to claims for damages or reinstatement.
Notice:
Both employers and employees must give notice before terminating an employment contract. The notice period varies depending on the employee’s length of service. Generally, the notice period ranges from one week to 12 weeks, depending on the duration of employment.
Severance Pay: In Malta, severance pay is not a legal requirement. However, employees who are terminated due to redundancy may be eligible for financial assistance from the Employment and Training Corporation (ETC) if certain conditions are met.
IMMIGRATION
Work Permits in Malta
The immigration process in Malta is organized and systematic, similar to most countries worldwide. Prospective immigrants usually need to apply for a specific visa or residency permit that corresponds to their reasons for relocating, such as work, education, or joining family members.
Malta offers several types of work permits for foreign nationals who wish to work in the country. The specific type of work permit required depends on the applicant’s qualifications, the nature of the job, and the intended duration of the stay. Some of the main types of work permits in Malta include:
Single Permit: This permit combines a residence permit and a work permit for non-EU/EEA nationals, allowing them to live and work in Malta. Applicants must have a valid job offer from a Maltese employer and meet certain requirements.
EU Blue Card: This permit is designed for highly qualified non-EU nationals who have a job offer in a specialized field in Malta. Applicants must meet specific educational and professional requirements.
Citizens of European Union (EU) countries generally do not need a work permit to work in Malta, as they benefit from the freedom of movement within the EU. However, they are required to register with the local Maltese authorities if they plan to work and stay in Malta for more than three months.
Public Holidays
Malta Public Holidays
Holiday Name | Date |
New Year’s Day | 1st January |
Feast of St. Paul’s Shipwreck | 10th February |
Feast of St. Joseph | 19th March |
Freedom Day | 31st March |
Labour Day | 1st May |
Sette Giugno | 7th June |
Feast of St. Peter and St. Paul | 29th June |
Feast of Our Lady of Victories | 8th September |
Independence Day | 21st September |
Feast of Our Lady of the Rosary | 7th October |
Republic Day | 13th December |
Christmas Day | 25th December |
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The Benefits
Malta Employer of Record Benefits
When you choose Agility EOR to expand in Malta, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Malta so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Maltese authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Maltese payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.