EOR Service in Malta

Shraddha Saxena

Hire, Onboard and Pay Employees in Malta Quickly and Efficiently

Hiring in Malta at a glance

CURRENCY
Euro (€)
working hours
40 hours per week
public/bank holidays
14
capital
Valletta
language
English
date format
DD/MM/YYYY
remote workers
1.2M
tax year
January 1st to December 31st
minimum hourly salary
No minimum wage
CURRENCY
Euro (€)
public/bank holidays
14
capital
Valletta
language
English
date format
DD/MM/YYYY
tax year
January 1st to December 31st
payroll frequency
Monthly
GDP
US $ 17.8 billion (est. 2021)
working hours
40 hours per week

Employer of Record in Malta

An Employer of Record (EOR) in Malta can assist in accessing talent efficiently. By partnering with an EOR, companies can tap into the local talent pool without establishing a legal entity. The EOR acts as the primary employer on the company’s behalf and handles payroll, tax compliance, employment contracts, benefits, and HR-related tasks, ensuEmployers of Record (EORs) in Malta play a crucial role in helping businesses hire and onboard employees while ensuring compliance with local labor laws. By partnering with a Malta-based EOR, companies can streamline their HR operations and navigate legal complexities more efficiently. EORs possess in-depth knowledge of Maltese regulations, providing valuable support in areas like payroll, taxes, and benefits administration. Moreover, this arrangement allows businesses to establish a presence in Malta without the need for a legal entity, saving time and resources. With a diverse and skilled workforce, Malta offers immense potential for companies looking to expand in Europe. By leveraging the expertise of EORs, businesses can seize growth opportunities, tap into the local talent pool, and foster a successful presence in the Maltese market.ring adherence to local regulations. This streamlines the hiring process, allowing businesses to focus on finding the right talent for their needs. 

Furthermore, EORs also take care of localized employee benefits that can help you retain talent. Overall, an EOR in Malta provides a seamless solution, enabling companies to hit the ground running and access the desired talent quickly and effectively.

Why use Malta EOR?

Partnering with a Malta EOR/PEO is highly advantageous for navigating the Maltese labor market and ensuring compliance with documentation and legal requirements for new employees.  This partnership offers a strategic advantage in handling the complexities of hiring in Malta, making it a valuable resource for companies entering the market.


Employers from countries with pro-employer labor laws like the USA and India may find Malta’s laws challenging. This is because Maltese labor laws are more structured and protective of employees. For example, employers from the US and India might need to adjust to the relatively lower standard working hours - standard work week in Malta is 40 hours.  Malta's alignment with EU directives can also make it challenging for these employers.

By collaborating with a reputable Malta EOR/PEO service provider, your business can navigate local labor laws, ensure compliance, streamline HR operations, and unlock significant growth opportunities in the Maltese market.

EOR Costs in Malta

The pricing of Malta EOR/PEO services can vary based on several factors, including the number of employees, the extent of services needed, and the complexity of the arrangement. Similar to Indonesia, Malta EOR/PEO providers often offer pricing structures that involve a monthly fee per employee or a percentage of the employee's salary.

The cost may differ depending on the specific requirements of each company, and additional charges might be applicable for extra services or personalized solutions. It is essential for businesses considering Malta EOR/PEO services to thoroughly discuss and understand the pricing models offered by various providers to find the most suitable and cost-effective solution for their needs.

As the demand for EOR/PEO services increases in Malta, competition among service providers may also influence pricing, so companies should conduct proper research and negotiate to secure the best value for their investment in EOR/PEO services in Malta.

Key Metrics For Foreign Employers 

Malta ranks 22nd globally for skill proficiency in INSEAD’s Global Talent Competence Report. The country is touted to be a leading provider of technology skills in Europe, which is evidenced by its high scores for Tertiary education expenditure (ranks 13) and  Prevalence of training in firms (ranks 21). The country’s labor force ranks 36th for employability.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Malta.

Factors Global Ranking Interpretation
Rule of law 34 Indicates effectiveness of law enforcement
Labour-employer cooperation 29 Indicates positive labor-employee relationships
Reading Maths, and Science 41 Indicates average scores in OECD's survey of 15-year old students
University Ranking 76 Indicates average QS rankings
Labour productivity per employee 28 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 117 Indicates findability of skilled talent
Workforce with tertiary education 37 Indicates % of workforce with PG degrees
Digital Skills 31 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2023

Through the Gloroots’ Recrew platform, you can discover amazing talent in Malta.

Why work in Malta?

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Risks of misclassification

Effectively managing employee classification is crucial when conducting business in Malta. Misclassifying workers can expose your company to legal risks and financial penalties. To safeguard your business, partnering with a reputable PEO/EOR in Malta is a wise decision.

By engaging a PEO/EOR, you ensure compliance with Maltese labor laws, accurate employee classification, and seamless payroll processing. These experts handle comprehensive benefits, ensuring that your workforce receives the necessary legal protections and entitlements they deserve. Entrusting employment-related obligations to trusted professionals in Malta allows you to concentrate on core business operations with peace of mind.

By leveraging the expertise of a Malta PEO/EOR, you mitigate the risks associated with misclassification and enhance your business's compliance and operational efficiency within the Maltese labor market.

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Employing in Malta

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

INCOME TAX 

Single resident taxpayers (or married couples opting for a separate computation)

Income Range (EUR) Tax Rate (%)
0.00 - 9,100 0.00%
9,101 - 14,500 15.00%
14,501 - 19,500 25.00%
19,501 - 60,000 30.00%
60,000.01 and above 35.00%

Married resident taxpayers in Malta:

Income Range (EUR) Tax Rate (%)
0.00 - 12,700 0.00%
12,701 - 21,200 15.00%
21,201 - 28,700 25.00%
28,701 - 60,000 25.00%
60,000.01 and above 35.00%

Tax rates for Parent in Malta:

Income Range (EUR) Tax Rate (%)
0.00 - 10,500 0.00%
10,501 - 15,800 15.00%
15,801 - 21,200 25.00%
21,201 - 60,000 25.00%
60,000.01 and above 35.00%

EMPLOYER PAYROLL : 

Annual Salary Social Security Rate Social Security Amount ( EUR)
Up to 26,831.00 10.00% 10% of Annual Salary
Exceeding 26,831.00 51.60 EUR/week 51.60 EUR per week

The "Total Employment Cost" is either 10.00% of the annual salary or a flat rate of 51.60 EUR per week, depending on the salary level and the employee's birthdate.

EMPLOYEE PAYROLL : 

Annual Salary Social Security Rate Description
Up to annual salaries of 26,831.00 EUR 10.00% -
Exceeding 26,831.00 51.60 EUR flat rate per week
Total Employee Cost 10.00% or 51.60 EUR flat rate per week

Separation

Employment Termination and Severance:

Termination Process:

In Malta, employers have the right to terminate a fixed-term contract based on various reasons, such as business needs, personal reasons, or worker misconduct. This termination process requires providing notice and a written explanation for the decision. In cases of misconduct, the employer must issue a warning and allow the employee an opportunity to explain their actions.

Additionally, in Malta, an employer can terminate an employee's contract for just cause, redundancy, or upon reaching the age of retirement. If an employee has worked for at least one month, they have the right to request an employment certificate that includes the dates of employment and a description of their duties, along with the reason for termination.

Furthermore, upon termination, an employee in Malta has the right to claim financial compensation for any outstanding leave balance owed to them.

Notice Period:

Length of Service Notice Period
Less than 1 month No notice required
1 to 6 months 1 week
6 months to 2 years 2 weeks
2 to 4 years 4 weeks
4 to 7 years 8 weeks
7 to 8 years 9 weeks
8 to 9 years 10 weeks
9 to 10 years 11 weeks
More than 10 years 12 weeks

Severance Pay:

There are no legal regulations or mandated laws concerning severance pay.

Probation Periods:

Malta introduced an employment legislation update in 2023, stating that definite contracts must have a minimum duration of six months.

When a definite contract is renewed for the same role and responsibilities, no new probationary period is required.

For fixed-term contracts lasting between six and fifteen months, the probationary period is calculated at two months for every six months of contract duration.

In the case of fixed-term contracts shorter than six months, the probationary period is set at one-third of the contract's duration.

For fixed-term contracts exceeding 15 months, the probationary period is six months.

Employees holding technical, executive, administrative, or managerial positions with wages at least double the national minimum wage have a twelve-month probationary period.

Start Hiring in Malta today

When hiring globally, ensuring compliance can be a complex task, especially in the ever-changing landscape of employment laws, payroll procedures, DE&I compliance, GDPR, and data protection regulations. Setting up infrastructure to meet these requirements and staying up-to-date can be challenging.

At Gloroots, we offer a comprehensive solution to minimize these complexities. Our integrated platform provides a centralized hub to manage all hiring and onboarding tasks efficiently. Our in-house experts are well-versed in cross-border employment and payroll compliance, ensuring that your employment contracts, payments, and benefits adhere to the necessary regulations in Malta.

We are dedicated to providing you and your employees with a stress-free global employment experience. Contact our experts today to initiate your global hiring campaign in Malta.

Grow your team in Malta

Expand your team in Malta with confidence by harnessing Gloroots' expertise as your trusted Employer of Record (EOR). Our comprehensive services take care of payroll, tax, benefits, and compliance, enabling you to prioritize your employees and drive company growth.

By partnering with Gloroots' Malta EOR, you can streamline operations, mitigate risks, and ensure compliance with Maltese employment regulations. We handle the complexities of local employment, providing a seamless experience for your expansion in Malta. With our support, you can focus on talent acquisition and team growth while entrusting compliance and payroll intricacies to us. Rely on Gloroots to navigate the Maltese labor landscape and unlock your business's potential in this promising European market.

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