Hiring guide in Malta

What should I know about hiring in Malta?

There are a few specifics to keep in mind when making an employment-related decision in Malta. One significant distinction from the legal systems of other countries is the procedure itself. 

An at-will employment relationship does not exist. In other words, an employer can only terminate an employee for cause and must give the employee notice of the termination. Also, it’s helpful to be aware that many employee rights are guaranteed by Maltese law. 

These include taking time off with pay, working in a safe and healthy environment, and being compensated fairly for one’s efforts. 

Finally, familiarity with the Maltese social security system is essential. Pensions, disability payments, minimum wage and medical coverage, are part of what you get with this system.

Why is Malta a good choice for finding remote employees?

Malta is an excellent choice for finding remote employees for several reasons. For starters, Malta is a very small nation. As a result, it’s much simpler to identify qualified people who are open to working remotely.

Secondly, Malta has a very advanced educational system. In other words, you will have no trouble recruiting skilled workers. 

Last but not least, the Maltese people place a premium on the use of the English language. In fact, English is one of the official languages of Malta. This makes it easy to communicate with your remote employees.

How can Native Teams help you hire in Malta

If you want to begin hiring remote workers from Malta, you will need either a Maltese business license or the services of a global recruitment solutions provider. Cooperating with Native Teams often proves fruitful in such circumstances. We can help you hire new employees, pay them, and comply with Maltese labor laws through our employer of record services!

 Hire your first Maltese employee with Native Teams.

Legal requirements for hiring in Malta

Minimum wage

Contributions & taxes

Employer tax

The average estimate for employer contributions is 10.30% of salary. 

• 10.00% goes to Social Security;
• 0.30% goes to Maternity Trust Fund.

Corporate tax

Companies registered in Malta must pay a corporate tax of 35% on all of their income and gains, no matter where they are earned.

Employee tax

The current rate of employee Social Security payroll deductions is 10.00%.

Income tax

Personal income taxes are progressive and range from 0% to 35%.

To calculate the salary and taxes in Malta please click here.

Payroll cycle

Regular salary payments occur every four weeks.

Is there a 13th salary in Malta?

Regarding 13th wages, the law contains no regulations.

Labor rules

Probation period

In most cases, a probationary period of 12 months or less is standard.

Notice period 

The duration of notice that must be given depends on the length of service and the grounds for termination.

• No notice period is necessary if the employee has worked for less than a month;
• 1 week’s notice period is required for employees with 1 to 6 months of service;
• 2 weeks’ notice is required for an employee with 6 months to 2 years of service;
• 4 weeks’ notice is required for an employee with 2 to 4 years of service;
• 8 weeks’ notice is required for an employee with 4 to 7 years of service;
• 9 weeks’ notice is required for an employee between 7 and 8 years of service;
• 10 weeks’ notice is required for an employee between 8 to 9 years of service;
• 11 weeks’ notice is required for an employee between 9 to 10 years of service;
• 12 weeks’ notice is required for an employee for employees with more than 10 years of service.

Severance period

Severance pay is not mandated by law.

Working hours

In Malta, a full-time workweek is defined as 40 hours or 8 hours per day. According to the Wage Regulation Orders, the maximum number of hours in a workweek cannot be more than 48 hours.

Leave and benefits

Public holidays

There are 14 official holidays that Maltese citizens are required to take time off work for.

1. New Year’s Day
2. Feast of Saint Paul’s Shipwreck
3. Feast of Saint Joseph
4. Good Friday
5. Freedom Day
6. Labour Day/May Day
7. Sette Giugno
8. Feast of Saints Peter and Paul
9. The Feast of Mary’s Assumption
10. The Feast of Our Lady of Victories
11. Independence Day
12. Feast of the Immaculate Conception
13. Republic Day
14. Christmas Day

Sick leave

The Wage Regulation Order specifies rules for sick days (WRO). A worker who a WRO does not cover is only eligible for two weeks of sick leave per year. Employees who have been sick for longer than two weeks may be eligible for sick pay from their employer or Social Security. All sick time off must be accompanied by a doctor’s note from the employee.

Maternity leave & paternity leave

In Malta, expectant mothers are entitled to 18 weeks of paid leave, with the first four weeks beginning four weeks before the employee’s due date and the final six weeks starting six weeks after the employee gives birth.

For the first 14 weeks of the benefit, the employer is responsible for paying the full amount; after that, Social Security takes over. In Malta, fathers do not have the right to be paid time off.

Other leave

Bereavement leave

Each employee is entitled to one day of paid time off in the event of the death of a spouse, domestic partner, parent, child, brother, sister, or another immediate family member.

Parental leave

Parents can take up to four months off work to care for a newborn, foster, or adopted child or otherwise take care of a child up to age eight without losing pay.

Marriage leave

Two paid days of marriage leave are granted to workers whose jobs are not governed by the WRO.

Adoption leave

When an employee becomes the parent of a child through adoption, the employee is entitled to eighteen weeks of unpaid leave, beginning on the date the child is placed in the care and custody of the adoptive parent or parents as a result of a judgment of a court of law in the country of origin.

What are the minimum vacation days?

All full-time employees are guaranteed at least 24 paid vacation days per year (PTO). A public holiday is a paid day off for most workers, but if it falls on a weekend, workers get an extra day off.

Insurance

Health security & private Insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us, and we will send a comparison of insurance packages and prices.*

Visa

Relocation and work permits 

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks, depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Malta, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in Malta?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.