Employer of Record in Malta

An Employer of Record (EOR) in Malta acts as the legal employer on your behalf, managing payroll, Social Security Contributions (SSC), and employment compliance.

Local hiring involves specific compliance obligations: DIER licensing requirements under S.L. 452.130, Jobsplus registration deadlines, and quarterly statutory bonus payments make it complex without a licensed partner.

• EOR hiring can begin within days, compared to 2 to 3 weeks for setting up a Maltese private limited company.
• Employer SSC is 10% of gross salary up to €26,831 per year, then a flat €51.60 per week above that threshold.
• Notice periods range from 1 week to 12 weeks depending on the employee's length of service.
• Every EOR operating in Malta must hold a DIER Temporary Work Agency licence under S.L. 452.130.

This page covers the legal framework, employer costs, onboarding steps, misclassification risk, and how to evaluate a provider.

Gloroots is an EOR provider operating in Malta. This guide is written to help readers evaluate all available options, not only Gloroots, so the information is presented without preference for any single provider.

What Is an Employer of Record in Malta?

An EOR becomes the statutory employer under Maltese law (Chapter 452, Employment and Industrial Relations Act), signing the employment contract, running FSS payroll, and remitting SSC to the Malta Tax and Customs Administration. For a full explanation of how does EOR work, see our dedicated guide.

Multinationals, scale-ups, and iGaming or financial services firms use this model to employ staff in Malta without registering a local entity.

In practice, the client selects the candidate, the EOR drafts a compliant Maltese employment contract, files the Jobsplus engagement form within four working days of the start date, runs monthly payroll, applies the Cost of Living Adjustment (COLA) and quarterly bonuses, and manages all statutory filings. Under S.L. 452.130, an EOR in Malta is legally classified as a Temporary Work Agency and must hold a valid DIER licence to operate.

Your Hiring Options in Malta: EOR vs. Entity vs. PEO vs. Contractor

Companies entering Malta can choose between four paths: EOR, a registered Maltese entity, contractor engagement, or a PEO arrangement. Maltese law does not formally accommodate PEO co-employment, making EOR the recognised standard for entity-free employment. To compare providers across these models, see our guide to the best employer of record options.

EOR suits fast market entry, bridging the gap during entity setup, or reducing Permanent Establishment (PE) risk. Where the Commissioner for Revenue determines a taxable presence exists, Maltese corporate tax can reach 35% on profits.

An own entity works for companies with long-term, high-volume hiring plans and the capacity to meet Malta Business Registry obligations.

Path	Setup Time	Compliance Ownership	Cost Structure	Best For
EOR	Days	EOR provider	Per-employee monthly fee	Fast entry, low headcount, PE risk mitigation
Own Entity	2 to 3 weeks (min. share capital €1,164.69)	Client company	Setup costs plus ongoing admin	Long-term, high-volume hiring
Contractor	Immediate	Client company	Variable, no statutory benefits	Short-term, project-based work (misclassification risk applies)
PEO	Not formally recognised under Maltese law	N/A	N/A	Not applicable in Malta

How to Hire in Malta Through an EOR: Step by Step

Hiring in Malta through a licensed EOR follows six steps, from provider selection through to ongoing payroll and compliance management.

Each step below maps to a specific Maltese legal or administrative requirement. Skipping or misordering steps creates compliance gaps, particularly around Jobsplus registration and DIER licence verification.

Step 1: Decide Between EOR and Entity Setup

Assess hiring volume, timeline, and PE risk exposure. For fewer than 10 hires or a timeline under six months, EOR is typically faster and lower-cost than incorporating a Maltese private limited company.

Step 2: Vet and Select a DIER-Licensed EOR

Confirm the provider holds a valid DIER Temporary Work Agency licence, verifiable at dier.gov.mt. Engaging an unlicensed agency is a criminal offence under S.L. 452.130.

Step 3: Draft a Compliant Maltese Employment Contract

The EOR drafts a contract covering role, salary, working hours (max 48-hour average over 17 weeks), notice period, probation, and termination grounds. The contract is issued within one month of the employee's start date.

Step 4: Register with Jobsplus and File Statutory Declarations

The EOR files the Jobsplus engagement form within four working days of the employee's start date. It also submits the FS4 onboarding declaration to the Malta Tax and Customs Administration.

Step 5: Run Compliant Monthly Payroll

The EOR processes FSS (PAYE) payroll, remits employer and employee SSC, applies the weekly COLA, and pays quarterly statutory bonuses. The monthly FS5 return is submitted to MTCA by the 15th of the following month.

Step 6: Manage Offboarding and Exit

The EOR issues statutory notice, files the Jobsplus termination form, and settles any outstanding leave balance. It then submits the annual FS3 and FS7 reconciliations to MTCA.

How to Choose the Right EOR in Malta

Selecting an EOR services provider in Malta requires checking four specific criteria tied to the country's regulatory environment.

Malta's employment framework sits at the intersection of domestic labour law and EU directives. Providers must hold the correct licences, demonstrate payroll accuracy, and show a clear record of statutory filings. A provider that meets these criteria reduces your legal exposure and keeps employment costs predictable.

The four criteria below give you a structured way to assess any provider before signing a contract. Each one addresses a distinct compliance risk specific to Malta.

Valid DIER Temporary Work Agency Licence

Verify the provider's DIER Temporary Work Agency licence number directly at dier.gov.mt before signing. Operating without a licence is a criminal offence, and the client company shares legal exposure.

Malta-Specific Operational Experience

Confirm whether the provider operates directly in Malta or subcontracts to a local partner. Direct operations reduce handoff risk for Jobsplus filings, MTCA submissions, and COLA calculations.

In-House Work Permit Handling with Identità

For Third-Country National hires, confirm the provider files Single Permit applications directly with Identità. In-house capability reduces the standard 4 to 8 week TCN processing timeline.

Transparent Fixed-Fee Pricing

Request a written fee schedule that separates the monthly management fee, typically €400 to €800 per employee in Malta, from payroll-run fees, immigration fees, and per-transaction charges.

Workforce and Talent Pool in Malta

Malta's workforce numbers approximately 220,000 individuals. EU membership and high English-language proficiency make the island a hub for iGaming, financial services, and technology companies.

Key talent hubs are Valletta, St Julian's, and Sliema. Dominant industries include iGaming, fintech, financial services, and maritime.

Work culture is professional and English-first. Malta's bilingual workforce, fluent in both Maltese and English, reduces language barriers for international employers. Salary costs remain competitive relative to Western European markets, though iGaming and fintech roles command premium rates.

Metric	Detail
Workforce Size	~220,000
Median Age	~40
English Proficiency	High (official language)
Top Talent Hubs	Valletta, St Julian's, Sliema
Key Industries	iGaming, Financial Services, Fintech, Maritime, Tourism

Employment Law Essentials in Malta

Malta's employment framework rests on five key instruments: Chapter 452 (EIRA), S.L. 452.130, S.L. 452.133 (equal pay, effective 1 January 2025), S.L. 452.108 (misclassification test), and S.L. 217.17 (Work Permit Regulations).

Employment contracts

Employers must provide a written contract within one month of the start date. Contract types include indefinite, fixed-term (renewable up to four years), and probationary. A 2023 amendment requires definite contracts to run for a minimum of six months.

Working hours and overtime

The standard working week is 40 hours. The maximum average is 48 hours over a 17-week reference period. Overtime for employees not covered by a Wage Regulation Order is paid at 150% of the regular rate. A special income tax rate of 15% applies to overtime earnings up to €10,000.

Minimum wage

The national minimum weekly wage is €221.78 for employees aged 18 and over, €215.00 for those aged 17, and €212.16 for employees under 17. Part-time wages are calculated pro-rata. The Cost of Living Adjustment (COLA) is applied weekly on top of the base wage.

Leave and Statutory Benefits in Malta

Annual leave

Full-time employees receive 24 days of paid annual leave. Additional days are granted when public holidays fall on weekends, bringing the total up to 28 days in applicable years.

Sick leave

Employees are entitled to 10 working days of sick leave per year under the Wage Regulation Order. A medical certificate is required for any absence. Social Security covers extended illness beyond this statutory period.

Maternity and paternity leave

Maternity leave is 18 weeks, starting four weeks before the due date. The employer pays 100% of salary for the first 14 weeks. Social Security covers the remaining period. There is no statutory paternity leave entitlement in Malta. Employers also contribute to the Maternity Leave Fund, a statutory obligation separate from standard Social Security contributions.

Public holidays

Malta observes 14 public holidays per year. When a public holiday falls on a weekend, employees receive a compensatory day off.

Leave Type	Entitlement	Pay Rate	Key Conditions
Annual Leave	24 days (up to 28)	100%	Extra days when public holidays fall on weekends
Sick Leave	10 working days/year	100% (employer); Social Security thereafter	Medical certificate required
Maternity Leave	18 weeks	100% for first 14 weeks (employer); Social Security after	Starts 4 weeks before due date; Maternity Leave Fund applies
Paternity Leave	None	N/A	No statutory entitlement
Public Holidays	14 days/year	100%	Compensatory day if holiday falls on weekend

Payroll, Tax and Statutory Contributions in Malta

Malta payroll runs monthly. The EOR is responsible for FSS (PAYE) deductions, SSC remittance, and all MTCA filings on behalf of the employer.

The monthly FS5 return, covering income tax and SSC, must reach MTCA by the 15th of the following month. Late submission triggers financial penalties. Annual FS3 and FS7 reconciliations are also mandatory and must be filed on schedule.

Income tax rates

Annual Income (EUR)	Single Rate	Married Rate	Parent Rate
Up to 12,000	0%	0%	0%
12,001–13,000	15%	0%	0%
13,001–15,000	15%	0%–15%	15%
15,001–16,000	15%	15%	15%
16,001–17,500	25%	15%	15%
17,501–23,000	25%	15%–25%	25%
23,001–60,000	25%	25%	25%
Over 60,000	35%	35%	35%

Employee SSC contribution

Contribution Type	Rate	Notes
Social Security (SSC)	10%	Applies to annual salaries up to €27,679

Employer SSC contribution

Annual Salary	Rate	Description
Up to €26,831	10%	Standard employer SSC rate
Exceeding €26,831	€51.60 flat/week	Flat weekly rate applies above cap

Beyond SSC, employers must budget for quarterly statutory bonuses paid four times per year, the weekly Cost of Living Adjustment (COLA) applied on top of base salary, and contributions to the Maternity Leave Fund as a separate mandatory cost.

The FS4 onboarding declaration must be filed with MTCA when a new employee joins. Monthly FS5 returns follow, with annual FS3 and FS7 reconciliations closing each tax year.

Work Visas and Permits in Malta

EU and EEA nationals can work in Malta without a permit. Third-Country Nationals (TCNs) require a Single Permit filed with Identità before starting employment.

A DIER-licensed EOR can sponsor TCN Single Permit applications. Required documents include the employment contract, private medical insurance proof, a signed CV, and three-year work experience references. Processing takes 4 to 8 weeks for TCNs and 1 to 2 weeks for EU nationals registering their right of residence.

Visa types

Visa Type	Purpose	Validity
Single Permit	TCN employment in Malta	1 year, renewable
EU/EEA Free Movement	No permit required	Indefinite
Short-Stay Schengen Visa	Business visits	Up to 90 days

Misclassification Risk in Malta

Under S.L. 452.108, meeting five of eight statutory criteria creates a legal presumption of employment, regardless of what the contract states.

Criteria that trigger the presumption

• The worker performs services personally and cannot substitute another person to carry out the work.
• The client controls working hours, location, and the method by which work is performed.
• The worker is economically dependent on a single client for the majority of their income.
• The worker uses equipment, tools, or premises supplied by the client to perform the work.

Penalties for misclassification

• MTCA assesses retroactive income tax and unpaid SSC for the full period of misclassification.
• Unpaid statutory bonuses, COLA, and accrued leave must be settled in full by the employer.
• First-offence fines under 2025 EIRA amendments range from €2,000 to €5,000 per worker.
• Total financial exposure can exceed €30,000 per worker for multi-year arrangements. Director personal liability applies.

DIER operates a two-year prescription window for enforcement action under the 2025 EIRA amendments. Arrangements that predate enforcement action remain within scope if the window has not closed. For context on how similar misclassification rules apply across the EU, see employer of record Germany.

Engaging a DIER-licensed EOR converts the worker to a compliant employment relationship, eliminating the misclassification presumption under S.L. 452.108.

Hiring, Onboarding, Termination and Offboarding in Malta

Onboarding

Before Day One

• Client and EOR sign a service agreement covering the scope of employment.
• EOR drafts a compliant Maltese employment contract aligned with EIRA requirements.
• FS4 onboarding declaration is prepared for submission to MTCA.
• Single Permit application is filed with Identità if the hire is a TCN.

Day One

• Employee signs the employment contract before or on the first day of work.
• EOR files the Jobsplus engagement form within four working days of the start date.
• Payroll profile is created in the FSS system with correct tax and SSC codes.
• Employee is briefed on the COLA schedule and quarterly statutory bonus dates.

First Week

• Private medical insurance is confirmed for TCN employees as required for permit compliance.
• Probation period is formally noted in the contract with the correct duration.
• EOR confirms SSC registration is active with MTCA.
• Client confirms work direction responsibilities and performance management arrangements.

Beyond

• Monthly FS5 return is filed by the 15th of each following month.
• Quarterly statutory bonuses are applied at the correct intervals throughout the year.
• Annual FS3 and FS7 reconciliations are prepared and submitted to MTCA.
• COLA adjustments are applied weekly in line with the applicable rate.

Termination

Employers may terminate for just cause, redundancy, or upon the employee reaching retirement age. Written notice and a written explanation are required in all cases. Notice periods range from one week for employees with one to six months of tenure to twelve weeks for those with more than ten years of service. In cases of misconduct, the employer must issue a prior warning and give the employee an opportunity to respond before proceeding.

Offboarding

Settlement

• Outstanding annual leave balance is calculated and paid in the final payroll run.
• Final payroll includes any accrued statutory bonuses not yet disbursed.
• Maternity Leave Fund contributions are reconciled for the period of employment.

Documents

• Employment certificate is issued on request, covering dates of employment and role description.
• FS3 annual reconciliation is filed with MTCA for the departing employee.
• Jobsplus termination form is filed to close the engagement record.

Exit

• DIER is notified if a temporary work agency engagement ends.
• Final FS5 return is submitted to MTCA covering the last payroll period.
• Single Permit cancellation is filed with Identità for TCN employees.

What's New: Recent Regulatory Changes in Malta

The 2025 amendments to the Employment and Industrial Relations Act (Chapter 452) introduced stricter misclassification enforcement, updated penalty bands, and extended the DIER prescription window for enforcement action to two years.

• S.L. 452.133, effective 1 January 2025, mandates equal pay parity for temporary agency workers from day one of assignment.
• First-offence misclassification penalties increased to €2,000 to €5,000 per worker under the 2025 EIRA amendments.
• The DIER prescription window for enforcement action has been extended to two years under the 2025 amendments.
• Probation period rules were updated in 2023: definite contracts must have a minimum six-month duration.
• Identità replaced Jobsplus as the Single Permit filing authority for TCN work permit applications.

Employers using contractors in Malta should audit those arrangements against S.L. 452.108 before the two-year DIER enforcement window closes.

Costs and Financial Planning for Hiring in Malta

Total employer cost in Malta extends well beyond gross salary. SSC, statutory bonuses, COLA, and EOR fees all add to the headline payroll figure.

Three costs catch international employers off-guard. The quarterly statutory bonus is mandatory and paid four times per year. The weekly COLA adjustment is mandatory and applied on top of base salary. The Maternity Leave Fund contribution is separate from standard SSC and must be budgeted as an additional employer cost. For a detailed breakdown of how these costs compare across markets, see employer of record cost.

Cost comparison: direct entity vs. Gloroots EOR

Cost Element	Direct Entity	Gloroots EOR
Employer SSC	10% up to €26,831 annual salary	10% up to €26,831 annual salary
Quarterly Statutory Bonuses	Mandatory	Mandatory
Weekly COLA	Mandatory	Mandatory
Maternity Leave Fund	Mandatory	Mandatory
EOR Management Fee	N/A	€400–€800/month
Entity Setup Cost	€1,164.69 min. share capital plus legal fees	None
Payroll Filing (FS4/FS5/FS3/FS7)	Internal resource required	Included
Work Permit Handling	Outsourced at additional cost	Included for TCN hires

Common Challenges and How Gloroots Solves Them in Malta

Malta's regulatory density creates compounding risk for first-time market entrants. DIER licensing requirements, Jobsplus deadlines, MTCA filings, and S.L. 452.133 equal pay compliance each carry independent obligations that must be met in sequence.

Companies entering Malta through an employer of record Estonia or similar small EU market will find Malta's iGaming and financial services overlay adds further complexity not present elsewhere.

Challenge	How Gloroots Addresses It
Verifying EOR provider's DIER licence before engagement	Gloroots provides its DIER TWA licence number upfront and directs clients to verify at dier.gov.mt.
S.L. 452.133 equal pay parity from 1 January 2025	Gloroots benchmarks temporary agency worker pay against comparable direct employees at the client site.
iGaming Key Function roles requiring MGA approval	Gloroots flags Key Function designations such as Compliance Officer and MLRO, then coordinates the MGA approval process before contract signing.
MFSA-regulated personnel requiring prior notification	Gloroots initiates the MFSA risk assessment and approval workflow before onboarding MFSA-approved staff.
TCN Single Permit delays of 4 to 8 weeks	Gloroots files directly with Identità and tracks application status in real time.

Why Gloroots Is a Strong EOR Partner in Malta

Gloroots is best suited for companies entering Malta's iGaming, fintech, or financial services sectors that need a DIER-licensed EOR with direct Identità work permit capability and S.L. 452.133 equal pay compliance built in.

Malta-specific strengths include in-house DIER TWA licensing, direct Jobsplus and MTCA filing capability, MGA and MFSA outsourcing workflow support, and transparent fixed-fee pricing covering all statutory obligations.

Gloroots removes the need to incorporate a Maltese private limited company for companies hiring fewer than ten employees.

This makes Gloroots a practical fit for scale-ups bridging the gap between market entry and full entity setup in Malta.

Buyers should confirm that any EOR provider, including Gloroots, can demonstrate its DIER licence number and show a clear fee schedule before signing a service agreement.

Conclusion

Malta's 2025 EIRA amendments and S.L. 452.133 equal pay rule have raised the compliance bar for every employer using temporary agency workers.

Companies evaluating Malta market entry should verify their EOR provider's DIER licence, confirm S.L. 452.133 equal pay compliance, and request a written fee schedule covering all statutory obligations before signing any service agreement. For teams also considering other EU markets, the employer of record Singapore page covers a comparable regulated financial hub outside Europe.

Frequently Asked Questions About Employer of Record in Malta

Is it legal to use an Employer of Record in Malta?

Yes. EOR is legal in Malta provided the provider holds a valid DIER Temporary Work Agency licence under S.L. 452.130. Operating as an EOR without this licence is a criminal offence. Clients can verify a provider's licence number directly at dier.gov.mt before signing any agreement.

What is the difference between an EOR and a PEO in Malta?

Maltese law does not formally accommodate PEO co-employment structures. Under S.L. 452.130, the recognised model is the Temporary Work Agency, where the provider is the statutory employer. PEO arrangements that split employer obligations between two entities are not clearly supported under Chapter 452 EIRA.

How much does an EOR in Malta cost?

EOR management fees in Malta typically range from €400 to €800 per employee per month, depending on role seniority and whether immigration sponsorship is required. This fee is separate from gross salary, employer SSC at 10%, quarterly statutory bonuses, weekly COLA, and the Maternity Leave Fund contribution. See Gloroots' employer of record cost guide for a full breakdown of cost components.

Does using an EOR in Malta eliminate Permanent Establishment risk?

An EOR significantly reduces PE risk by ensuring the worker is employed by a Maltese legal entity rather than the foreign client. It does not absolutely eliminate PE risk. If the Commissioner for Revenue determines that the foreign company exercises sufficient control over Maltese operations, corporate tax of up to 35% may still apply.

How long does it take to hire an employee in Malta through an EOR?

For EU/EEA nationals, an EOR can onboard an employee within a few days once the employment contract is signed and the Jobsplus engagement form is filed. For Third-Country Nationals requiring a Single Permit from Identità, the process typically takes 4 to 8 weeks depending on document completeness.

Is there a limit on how many employees a company can hire through an EOR in Malta?

There is no legal cap on the number of employees a company can hire through a DIER-licensed EOR in Malta. Companies with large or permanent headcounts should evaluate whether incorporating a Maltese private limited company, which takes 2 to 3 weeks and requires €1,164.69 minimum share capital, becomes more cost-effective than ongoing EOR fees.

Can an EOR in Malta sponsor work visas for non-EU employees?

Yes. A DIER-licensed EOR can act as the sponsoring employer for Third-Country National Single Permit applications filed with Identità under S.L. 217.17. The EOR provides the employment contract, private medical insurance confirmation, and supporting documents. Processing typically takes 4 to 8 weeks from submission of a complete application.