Employing in Malta
Employing in Malta: the questions employers ask most
Fourteen short answers on hiring, paying and managing staff in Malta, each linked to a fuller guide. Start with the question you need or read from the top.
Questions covered in this guide
1
How do you employ someone in Malta?
You employ someone in Malta either through your own Maltese company or through an Employer of Record that already has one. The employer must register with the tax authority for a PE number, submit a Jobsplus engagement form within four working days of the start date, give the employee a written statement of their terms within seven days, and run payroll under the Final Settlement System. After probation, dismissal needs a good and sufficient cause, so the paperwork matters from the start.
Step-by-step hiring guide →2
How much does it cost to employ someone in Malta?
The cost of employing someone in Malta is the gross salary, including COLA and the statutory bonuses, plus employer Class 1 social security and a small Maternity Leave Trust Fund levy. The employer pays 10% of basic weekly pay, capped at €55.93 a week in 2026 for employees born from 1962, and 0.3% to the Trust Fund, capped at €1.68 a week. Above about €29,000 a year, statutory on-costs are fixed at just under €3,000.
3
How long does it take to start employing in Malta?
Through an Employer of Record, an EU national can usually start within days, because the Maltese company, payroll and registrations already exist. Forming your own private limited company can be registered within days of due diligence, but opening a Maltese bank account and completing tax and Jobsplus registrations usually pushes the first payroll out by several weeks. Non-EU hires also need a Single Permit before they start.
4
Do you need a Maltese company to hire in Malta?
No. A foreign business can employ staff in Malta without a local company by using an Employer of Record, which becomes the legal employer and handles payroll and compliance. A Maltese Ltd needs share capital of at least €1,165, a registered office, a company secretary and audited accounts every year, so it tends to make sense for larger permanent teams or businesses that need a Maltese licence.
Read what an Employer of Record does →5
Should you hire an employee or a contractor in Malta?
Hire an employee if the person works mainly for you under your direction. Malta’s Employment Status National Standard Order treats a worker as an employee when at least five of eight criteria apply, such as relying on one client for 75% of income or working set hours with the client’s equipment. A contractor label does not override the test, and reclassification brings full employment rights plus back tax and social security exposure.
Read the misclassification guide →6
What must a Maltese employment contract include?
A Maltese employer must give a written statement of the main terms within the first seven days, covering pay, hours, leave, notice, probation and any collective agreement. Probation is six months by default and up to a year for technical, executive or managerial roles paid at least twice the minimum wage. Fixed-term contracts can run for four years in total before they are treated as indefinite.
Read the employment contracts guide →7
How do payroll and tax work in Malta?
Malta uses the Final Settlement System. The employer withholds income tax and Class 1 social security from each payroll and pays both to the Malta Tax and Customs Administration with the monthly FS5, due by the end of the following month. In 2026 the single computation is tax free up to €12,000, with rates of 15%, 25% and 35% above that. Each year the employer issues FS3 statements and files the FS7 by 15 February.
Read Malta payroll explained →8
What is the minimum wage in Malta in 2026?
The national minimum wage for employees aged 18 and over is €229.44 a week in 2026, about €5.74 an hour on a 40-hour week. Rates are €222.66 at 17 and €219.82 under 17. With the statutory bonuses added, a full-time adult minimum wage comes to about €12,443 a year. Sector Wage Regulation Orders can set higher minimums.
9
What leave are employees in Malta entitled to?
Full-time employees in Malta get 192 hours of paid annual leave, which is 24 days on a 40-hour week, plus an extra day for each public holiday that falls on a weekend. That makes 216 hours in 2026. Malta has 14 public and national holidays. Mothers get 18 weeks of maternity leave, second parents get 10 working days of paid leave after a birth, and each parent can take four months of parental leave, eight weeks of it paid.
10
How does sick pay work in Malta?
Unless a sector wage order says otherwise, employees in Malta are entitled to at least two working weeks of sick leave a year on full pay, supported by a medical certificate. The employer pays the normal wage less any sickness benefit the employee receives from the state. Once the entitlement is used, the employee can claim state sickness benefit. Many employers offer more in the contract.
Read the sick leave guide →11
What do social security contributions pay for in Malta?
Class 1 social security funds the Maltese state pension and benefits such as sickness, maternity and unemployment support. Employer and employee each pay 10% of basic weekly pay up to the weekly cap. The employer also pays the Maternity Leave Trust Fund levy, which reimburses employers for the 14 weeks of maternity pay they fund. Occupational pension schemes are voluntary.
Social security guide →12
How do you end employment in Malta?
After probation, a Maltese employer needs a good and sufficient cause to end an indefinite contract, and must give notice based on length of service, from one week up to 12 weeks. There is no statutory severance pay. Redundancies follow the last-in-first-out rule within the affected group, and a dismissed employee can bring an unfair dismissal claim to the Industrial Tribunal within four months.
13
What are the rules on remote work in Malta?
Remote work in Malta is covered by the Telework National Standard Order. Telework is voluntary unless the contract requires it, refusing it is not a reason for dismissal, and the employer normally provides and maintains the equipment. There is no statutory right to request remote work yet, although the government has promised to consult on one. Non-EU remote workers employed abroad can apply for the Nomad Residence Permit.
Remote work guide →14
What does an Employer of Record take off your hands in Malta?
An Employer of Record employs your team member through its own Maltese company, so you never have to form one. The EOR issues the contract, submits the Jobsplus and tax registrations, runs FSS payroll with COLA and bonuses, files the FS5, FS3 and FS7, and manages leave, sick pay, notice and permits. You direct the work and deal with one named specialist and one monthly invoice.
Our Malta EOR service →Ready to employ someone in Malta?
Tell us about the role and when you need them to start. We will explain the process and the full cost, and get your new employee contracted and on payroll without you forming a Maltese company.