How the EOR Process Works in Malta: The 5-Step Model

The EOR process in Malta starts with a service agreement between your company and the EOR. It records what you are buying: the EOR employs a named person on terms you approve, and you pay the employment costs plus a service fee.

Before signing, agree the basics of the role. The EOR needs the job title, the start date, the gross salary, the weekly hours and whether the employment is indefinite or fixed-term. It is sensible to state whether the salary includes COLA and the statutory bonuses, which together add €754.84 a year in 2026. Contracts in Malta often say pay is “inclusive of statutory bonuses and COLA”, and an offer should say the same to avoid confusion later.

The agreement also sets out the monthly invoice. A clear one lists gross salary, employer Class 1 social security, the Maternity Leave Trust Fund contribution, any benefits and the fee. At Employer of Record Malta the fee is a flat amount from €499 per employee per month, shown on our pricing page.

Once this is signed, your company has no registration to make in Malta. The EOR’s own Maltese company is the employer from here on.

In step two the EOR collects what it needs to employ the person lawfully in Malta. Most of this comes straight from the employee through a short onboarding form.

The list is short for an EU, EEA or Swiss national:

• Full name, address and date of birth. The year of birth matters, because Class 1 caps differ for people born before 1962.
• Maltese ID or residence document, tax number and social security number, or the details needed to obtain them.
• Bank account for salary payments.
• Marital status and children, so the correct tax computation (single, married, parent or the new family rates) is applied.
• Any prior employment in Malta in the same year, which affects tax already deducted.

EU nationals do not need a work permit, although they must register their residence with Identità. Non-EU nationals are different. They need a Single Permit, which is tied to one employer, and cannot start work until it is authorised. From 1 March 2026 most new applicants still abroad must also hold a Pre-Departure Course certificate. If your hire needs a permit, build that time into the start date rather than assuming the usual one to two days.

Benefits are agreed at this stage as well. Private health insurance, a laptop allowance or a meal voucher scheme are common in Malta’s tech and financial services sectors, and the EOR needs to know about them before the first payroll so any taxable value is treated correctly.

Step three turns the offer into a signed Maltese employment contract and registers it with the authorities. At an experienced EOR, the contract is usually ready within hours of receiving the details.

The contract follows the Employment and Industrial Relations Act (Cap. 452) and the Transparent and Predictable Working Conditions Regulations. It covers pay, hours, place of work, leave, probation, notice and any collective agreement or Wage Regulation Order that applies. The employee must have these written terms within seven calendar days of starting.

Probation is set here too. The default for an indefinite contract is six months. It can be one year for technical, executive, administrative or managerial roles paid at least twice the national minimum wage. Fixed-term contracts get a pro-rata probation of up to six months.

Then come the registrations. The EOR submits the Jobsplus engagement form within four working days of the start date, and the employee is added to the EOR’s FSS payroll under its employer PE number. Your company does not appear on either filing.

In step four the EOR pays the employee through the Final Settlement System, withholding income tax and social security at source. The first payslip is where the numbers become real, so it helps to know what goes into it.

Class 1 social security is 10% from the employee and 10% from the employer, based on the basic weekly wage. For someone born in 1962 or later, contributions stop rising once the weekly wage passes €559.30, so both sides pay a fixed €55.93 a week. The employer also pays the Maternity Leave Trust Fund contribution, 0.3% of the basic wage and capped at €1.68 a week at that level.

Income tax is deducted using the right computation. In 2026 the single computation charges 0% on the first €12,000 of chargeable income, with rates rising to 35% above €60,000. Married and parent computations have wider lower bands. Qualifying overtime can be taxed at a flat 15% on the first €10,000, subject to conditions, and staff earning at least €65,000 in eligible sectors may qualify for the 15% Highly Skilled Individuals rules introduced in 2026.

Timing matters for new starters. If someone joins mid-month, the EOR pro-rates the salary and the statutory bonus entitlement, which accrues at €0.74 per calendar day for the June and December bonuses.

The EOR pays the tax and social security to MTCA with the FS5 return, due by the end of the month after wages are paid. You receive one invoice covering salary, employer contributions and the fee, so there is a single payment to make each month. For a worked example of the full employer cost, see our guide to the cost of hiring in Malta.

Step five lasts as long as the employment does. The EOR keeps the contract compliant month by month while you manage the person’s work.

A normal year in Malta includes several fixed events. The weekly allowance of €121.16 is paid at the end of March and September, and the €135.10 statutory bonus at the end of June and in December. COLA is added to pay each January once the new rate is set in the Budget. FS3 statements go to employees and the FS7 reconciliation to MTCA by 15 February.

• Leave: 192 hours of annual leave a year, plus extra hours when public holidays fall on a weekend (216 hours in 2026).
• Sick leave: at least 80 hours on full pay where no Wage Regulation Order says otherwise, less any sickness benefit the employee receives.
• Family leave: 18 weeks of maternity leave, 10 working days of paternity leave and parental leave, with Trust Fund refund claims where they apply.
• Changes: pay rises, new job titles and changes in hours are recorded in writing.

If the employment ends, the EOR applies the statutory notice period, which runs from one week to twelve weeks depending on service, and files the Jobsplus termination form. After probation, an indefinite contract can only be ended for good and sufficient cause, so talk to the EOR before any decision is made.

In the Malta EOR process, your company owns the work and the EOR owns the employer paperwork. The split stays the same from the first day to the last.

Your company finds and selects the candidate, agrees the salary, sets objectives, approves leave in practice and decides on pay rises or changes to the role. You also provide the equipment and systems the person needs, unless the EOR arranges them for you.

The EOR drafts and signs the contract, registers the hire with Jobsplus and MTCA, runs payroll, applies leave and bonus rules, files FS5, FS3 and FS7 returns and handles the formal steps if the employment ends. It is also the first contact for the employee’s questions about payslips and entitlements.

The employee works for your team day to day and has the same rights as anyone employed in Malta. For more on the model itself, read what an employer of record in Malta is, or see our full list of EOR services in Malta.