Malta

The national minimum wage for full-time employees for 2024 is 213.54 EUR per week for an employee aged 18 and over, 206.76 EUR per week for an employee aged 17, and 203.92 EUR per week for an employee aged under 17.

The national minimum wage for part-time employees is calculated pro-rata at the same hourly rate of a comparable full-time employee in accordance with the relevant Wage Regulation Order.

After a year of work, minimum wage earners have their income increased by at least 3.00 EUR per week above minimum wage and 6.00 EUR per week after the second year of work.

Mandatory bonuses

Malta has a mandatory annual bonus, called the government bonus, set by the government and covered by the employer. Employers pay the annual bonus in quarterly installments at the end of March, June, September, and December. 

The bonuses for 2024 are:

• €500 for employees who paid less than 5 years' worth of social security contributions (from €450)

• €600 for employees who paid more than 5 years' worth of social security contributions, but less than 10 years  (from €550)

These bonuses are paid along with the employee’s monthly / four weekly wage and are taxable. Part-time employees are entitled to a pro-rata bonus based on the number of hours worked.

employee, the sick leave entitlement is two weeks (10 working days) per year. After two weeks, an employee may be entitled to a sickness benefit through Social Security.

The employee must provide a medical certificate for all sick leave.

Maternity Leave

Maternity leave in Malta is 18 weeks and starts 4 weeks before the expected due date and an employee must take a minimum of 6 weeks after the birth.

The maternity benefit is paid at 100% of the regular rate of salary by the employer for the first 14 weeks and after that, paid by Social Security.

Paternity Leave

There is no statutory paternity leave in Malta.

Parental Leave

Parents are entitled to 4 months of paid leave for the birth of a child, adoption, fostering, or general care until the child reaches the age of 8.

To be eligible, the employee must have been employed for at least 12 consecutive months.

Full-time employees who work 40 hours per week are entitled to 24 working days of paid leave (pro-rata for employees not working full-time hours).

The law stipulates that a minimum of four weeks cannot be replaced by any allowances, except where employment is terminated.

Public holidays falling on the weekend are added to the worker’s annual vacation allowance to be taken as days off in lieu.

Date Day Holiday

1 Jan 2024 - Monday - New Year’s Day

10 Feb 2024 - Saturday - Feast of St Paul’s Shipwreck

19 Mar 2024 - Tuesday - St Joseph’s Day

29 Mar 2024 - Friday - Good Friday

31 Mar 2024 - Sunday - Freedom Day

1 May 2024 - Wednesday - Workers’ Day

7 Jun 2024 - Friday - Sette Giugno

29 Jun 2024 - Saturday - Feast of Saints Peter and Paul

15 Aug 2024 - Thursday - Assumption of Mary

8 Sep 2024 - Sunday - Victory Day

21 Sep 2024 - Saturday - Independence Day

8 Dec 2024 - Sunday - Feast of the Immaculate Conception

13 Dec 2024 - Friday - Republic Day

25 Dec 2024 - Wednesday - Christmas Day

Employers can terminate a fix term contract by giving the following reasons: business, personal, or worker misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given, and the employee gets a chance to explain their actions.

Fixed-term contracts cannot be terminated prior to the lapse of the stipulated term, except by reason of “a good and sufficient cause“. Should either party terminate prior to the lapse of the specified term, the terminating party would be liable to pay the other party half of the wages that would have accrued to the employee in respect of the remainder of the time specifically agreed upon.

In Malta, an employer can terminate an employee for just cause, redundancy, or due to reaching the age of retirement. All terminations will be assessed individually, and advice will be given on a case-by-case basis. If termination is requested by an employee who has completed at least one month of employment, the employer is obligated to provide an employment certificate stating the dates employed and a description of duties.

If the reason for the termination is on grounds of Redundancy, that employee will be entitled to re-employment if the post they formerly occupied is again available within a period of one year from the date of termination of employment. When an employer intends to terminate the employment of an employee on grounds of redundancy, the employer shall terminate the employment on the grounds of last in first out. A Mutual Termination Agreement (MTA) is recommended  rather than a Redundancy procedure.

Notice Period

The amount of notice required is dependent on the length of service and reason for termination, as follows:

• If an employee has less than one month of service, no notice period is required

• For an employee with between one and six months of service, one week of notice is required

• For an employee with between six months and two years’ service, two weeks’ notice is required

• For an employee with between two- and four years’ service, four weeks’ notice is required

• For an employee with between four- and seven years’ service, eight weeks’ notice is required

• For an employee with between seven- and eight years’ service, nine weeks’ notice is required

• For an employee with between eight- and nine years of service, ten weeks’ notice is required

• For an employee with between nine- and ten years’ service, eleven weeks’ notice is required

• For an employee with more than ten years’ service, twelve weeks’ notice is required

It is possible to pay the employee in lieu of notice. However, suppose an employee is due to work the notice and chooses not to work during this period or resign without notice; in that case, they are obligated to pay the employer 50% of the wages that would have been earned during the notice period.

An employee who fails to give notice will be liable to pay the employer a sum equal to half the wages that would have been due in respect of the notice period.

The other “good and sufficient cause” that might be considered is the Redundancy. Redundancy is complex in Malta. If an employee’s employment is terminated equal to the full wages that would have been payable in respect of the notice period.

Severance Pay

There are no statutory laws on severance pay.

Probation Period

Malta introduced an update to its employment legislation framework in 2023 as follows: a definite contract needs to have a duration period of at least six months.

In the case of the renewal of a definite contract for the same function and tasks, the employment relationship shall not be subject to a new probationary period.

In a fixed term contract of between six months and fifteen months duration, the probationary period shall be calculated based on two months’ probationary period per six months contract duration.

If the fixed-term contract is shorter than six months, the probationary period shall be one-third of the duration of the same fixed-term contract.

If the fixed-term contract exceeds a 15-month duration, the probationary period shall be of six months.

Employees holding technical, executive, administrative, or managerial positions whose wages are at least double the national minimum wage shall be on probation for a period of twelve months.

Malta’s immigration law provides several options for employers of foreign nationals. Malta is a member of the European Union (EU) and the Schengen Area. Requirements, processing times, employment eligibility, and benefits for accompanying family members vary by visa classification.

Business visitors to Malta typically use a local version of the Schengen C Visa unless they are visa exempt based on their nationality. The Schengen Area limits stay to 90 days within 180 days.

For work, foreign nationals traveling to Malta require a Single Permit, which combines work and residence authorization. The Single Permit can be issued for one year and is renewable.