Malta at a glance
Taxes in Malta
Employer Contributions
Total employer social security: 10% of gross salary
| Contribution Type | Rate |
|---|---|
| Social security (Class 1) | 10% |
Note: Total employer contribution is capped at a weekly maximum based on government-set contribution bands.
Total employer social security: 10% of gross salary
| Contribution Type | Rate |
|---|---|
| Social security (Class 1) | 10% |
Note: Total employer contribution is capped at a weekly maximum based on government-set contribution bands.
Income tax: 0%–35% | Social security: 10%
| Contribution Type | Rate |
|---|---|
| Social security (Class 1) | 10% |
| Income tax | 0% – 35% |
| Taxable Income (EUR) | Rate |
|---|---|
| €0 – €9,100 | 0% |
| €9,101 – €14,500 | 15% |
| €14,501 – €19,500 | 25% |
| Over €19,500 | 35% |
Note: Malta also provides single, married, and parent rates with different bracket thresholds.
Employer of Record in Malta
How Remote& EOR Works
Remote& acts as the legal employer of your Maltese workers — handling social security contributions, payroll, statutory benefits, and employment contracts while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files social security and tax, administers benefits, ensures EIRA compliance |
| Employee | Works for your company under a locally compliant Maltese contract |
Ask Remi:
"Hire a UX designer in Valletta — €2,800/month, starting next quarter" Remi handles everything: contract, social security registration, payroll setup, and statutory leave enrollment.
Benefits in Malta
- Social security (Class 1): Mandatory. 10% employer + 10% employee on gross salary, subject to weekly caps
- Statutory bonuses: Employees are entitled to two statutory bonus payments per year — a cost-of-living allowance (COLA) adjustment and a productivity bonus
- Private health insurance
- Performance bonuses
- Remote work equipment
- Professional development budget
- Gym or wellness allowance
- Meal allowance
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 24 working days + 14 public holidays |
| Sick Leave | Up to 2 weeks paid sick leave per year, depending on service length |
| Maternity Leave | 18 weeks |
| Paternity Leave | 2 days |
| Parental Leave | 4 months unpaid (per parent) |
Employment conditions
Probation
Probation periods in Malta are typically 6 months for standard roles and up to 12 months for managerial or technical positions. Terms must be included in the employment contract.
Written Employment Terms
Maltese law requires employers to provide a written statement of employment conditions within 8 days of the start of employment, covering role, salary, working hours, notice periods, and applicable collective agreements.
Employee Rights & Protections
Maltese workers are entitled to: written employment contract, equal pay and anti-discrimination protection, safe and healthy working conditions, whistleblower protection, GDPR data protection, unfair dismissal protection, and union membership rights.
Payments
End of employment in Malta
Termination under EIRA must be based on valid grounds — redundancy, performance, conduct, or mutual agreement. Notice periods are determined by length of service:
- Less than 1 month: 1 week
- 1 month to 6 months: 2 weeks
- 6 months to 2 years: 4 weeks
- 2 to 4 years: 8 weeks
- Beyond 4 years: 1 additional week per year, up to 12 weeks
Unfair dismissal claims may be brought before the Industrial Tribunal. Remedies include reinstatement or compensation.
Frequently asked questions
Four paths: run payroll from HQ for short-term arrangements; engage genuine independent contractors for project-based work; establish a Maltese entity for direct employment; or use Remote& as Employer of Record — the fastest compliant route without a local company.