How to Hire Employees in Malta

Hiring employees in Malta requires written employment contracts, payroll registration, and full compliance with the Employment and Industrial Relations Act from the first day of employment, with no grace period for foreign employers entering the market.

The primary operational challenge is coordinating registration across multiple government bodies simultaneously. Employers must register with the Commissioner for Revenue, the Department of Social Security, and Jobsplus, and are required to submit a mandatory Engagement form on the employee's first working day.

Job Market and Hiring Trends in Malta

Malta's workforce grew faster than the EU-27 average between 2023 and 2024, with iGaming, financial services, and technology sectors driving most international hiring demand during that period.

Despite high overall employment, shortages in specialised technology roles, financial services compliance, and healthcare positions persist across the Maltese labour market.

• Malta's employment rate reached 80.3% in Q3 2023, above the EU average (Eurostat).

• The iGaming sector employs over 10,000 people and accounts for approximately 12% of GDP (Malta Gaming Authority, 2023).

• Financial services contributes approximately 12% of GDP, with sustained demand for compliance and anti-money laundering specialists (MFSA, 2023).

• Foreign nationals make up 28% of Malta's population as of 2023 (NSO Malta).

• Malta's female labour force participation rate rose to 72.4% in 2023, above the EU average (Eurostat).

These figures reflect a tight labour market where international employers compete for a limited pool of qualified candidates, particularly in regulated and technical fields.

Plan your next hiring step

Talk through the questions raised in Job Market and Hiring Trends in Malta with the Gloroots team.

Book a demo

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

Foreign employers entering Malta choose between three hiring paths: a local entity, an Employer of Record, or independent contractors. The right choice depends on team size, timeline, and risk tolerance.

Entity setup requires registration with the Malta Business Registry. This path suits companies planning long-term operations with permanent, larger teams in Malta.

Contractors work well for short-term, clearly scoped projects. However, Malta's 5-of-8 criteria test under the Employment Status National Standard Regulation creates real misclassification risk for companies that rely on this model.

An Employer of Record manages payroll, social security contributions, employment contracts, Jobsplus filings, and EIRA compliance on your behalf. No local entity is required. To understand how does EOR work in practice, the model places the EOR as the legal employer while you direct day-to-day work. Companies evaluating providers can review a comparison of the best employer of record options before committing.

Employees vs. Contractors in Malta

Misclassifying a worker in Malta triggers back-payment of social security contributions, income tax, and statutory benefits, plus administrative fines from the relevant authorities.

Malta's Employment Status National Standard Regulation presumes an employment relationship when five of eight specified criteria are met. Key indicators include earning 75% or more of income from a single client and working to schedules set by that client rather than the worker. Employers cannot rely on a contractor label alone to avoid these obligations.

Bookkeeping and record-keeping violations carry fines of approximately $814 (€700) to $11,624 (€10,000) per offence, with daily accumulation until the breach is corrected.

Cost to Hire an Employee in Malta

Total employment cost in Malta exceeds gross salary. Employers must budget for social security contributions, the maternity fund, and the training levy on top of base pay.

Employer social security contribution (SSC) is 10% of basic wage, capped at an annual salary of approximately $32,175 (€27,679). Additional employer obligations include a 0.3% maternity fund contribution and a 0.5% training levy, both calculated on basic wage. Understanding the full employer of record cost helps companies compare entity setup against managed employment options.

SSC contributions do not apply to earnings above the annual cap. Employers pay no additional SSC once an employee's basic wage crosses that threshold in a given year.

Get clear hiring costs

See how pricing can support the plan covered in Cost to Hire an Employee in Malta.

View pricing

Compliance Risks While Hiring in Malta

Non-compliance in Malta triggers enforcement from multiple agencies, including the Commissioner for Revenue, the Department of Social Security, and the Department of Industrial and Employment Relations (DIER).

• Missing the Jobsplus Engagement form on day one: Failure to submit this form breaches the Employment and Training Services Act CAP 594 and exposes the employer to immediate regulatory action.

• Late FS5 SSC return: The monthly FS5 return is due by the 9th of the following month. Missing this deadline triggers fines and interest charges that accrue from the due date.

• Worker misclassification: Treating an employee as an independent contractor creates retroactive liability for SSC, income tax, and all statutory benefits. Malta's Employment Status National Standard Regulation applies a presumption of employment when five of eight specified criteria are met.

• Incorrect notice period on termination: Applying the wrong notice period gives the employee grounds to file an unfair dismissal claim. Claims must be filed within four months of termination.

• Permanent establishment (PE) risk: Operating in Malta without a local entity while an employee holds authority to sign contracts may trigger Malta's 35% corporate income tax on attributed profits.

• GDPR breach: Processing employee personal data without a lawful basis under GDPR exposes the employer to enforcement by the Information and Data Protection Commissioner.

Each risk category involves a separate enforcement body. Employers managing multiple obligations across agencies benefit from centralised compliance governance to track filings, deadlines, and employment status determinations in one place.

Key Labor Laws in Malta

Employment contracts

The Employment and Industrial Relations Act (EIRA) requires employers to provide written employment terms within 7 calendar days of the start date. Fixed-term contracts carry probation periods scaled to contract duration.

Employers cannot impose a new probation period when renewing a fixed-term contract for the same work. Probation is suspended during justified absences of two weeks or more, including vacation, sick leave, maternity leave, and jury service. Dismissal during a suspension period is prohibited.

Working hours and overtime

Malta caps average weekly working hours at 48, including overtime. Hours beyond 40 per week are paid at 150% of the normal rate. Sunday work attracts 200%, and public holidays attract 300%. Employees working more than 6 consecutive hours are entitled to a statutory 15-minute break.

Minimum wage

The national minimum wage as of January 2025 is approximately $258 (€221.78) per week for employees aged 18 and above. Employees aged 17 receive approximately $250 (€215.00) per week, and those under 17 receive approximately $247 (€212.16) per week. Wage Regulation Orders set sector-specific floors that override the national minimum in covered industries. Employers should check the DIER WRO list to confirm the applicable rate for their sector.

Leave entitlements

Malta mandates annual leave, sick leave, maternity, paternity, and parental leave for all employees. Full details on each entitlement are covered in the Employment Benefits section below.

What to Include in an Employment Contract or Offer Letter in Malta

A compliant Maltese employment contract satisfies EIRA's mandatory written-terms requirement and protects both the employer and the employee from the start of the relationship.

Every contract or offer letter should include the following elements:

• Job title, duties, and reporting line

• Gross salary, COLA allowance, and statutory bonus payments ($157 (€135.10) in June and December; $141 (€121.12) in March and September)

• Probation period duration and the conditions under which it may be suspended

• Working hours, overtime arrangements, and statutory rest entitlements

• Annual leave entitlement, which is a minimum of 192 hours per year

• Notice period tied to length of service

• Confidentiality and intellectual property assignment clauses

• Governing law: Malta and EIRA

• Work permit status, if the employee is a non-EU national

• Data protection acknowledgment under GDPR

Including all ten elements reduces disputes and creates a clear record for payroll, tax, and compliance purposes.

Payroll and Taxes in Malta

Malta operates a monthly payroll cycle. Salaries are paid in euros and income tax is withheld under the Final Settlement System (FSS).

Foreign employers without a local entity must use an EOR or register a PE number with the Commissioner for Revenue before processing any payroll in Malta. See Gloroots pricing for entity-free employment costs.

Income tax is withheld monthly under FSS. Rates depend on filing status, single, married, or parent, with separate progressive brackets for each status.

Income tax rates by filing status

Employer and employee contributions

The annual FS3 reconciliation statement is due by March 31. Employers must retain payroll records for ten years.

Employment Benefits in Malta

Malta mandates a defined set of statutory benefits under the Employment and Industrial Relations Act (EIRA). Employers in competitive sectors such as financial services, iGaming, and tech typically supplement these with optional benefits to attract skilled talent.

Paid time off and public holidays

Employees are entitled to a minimum of 192 hours of annual leave per year, equivalent to four weeks. Malta observes 14 named public holidays, including the Feast of St. Paul's Shipwreck on February 10, Sette Giugno on June 7, and Victory Day on September 8.

Where a public holiday falls on a Saturday, Sunday, or rest day, the employee receives an additional annual leave day. This rule took effect after 2021.

Sick leave

Employees receive 10 days of employer-paid sick leave per year where no Wage Regulation Order applies. Social security covers continued absence beyond that threshold.

Maternity and paternity leave

Maternity leave is 18 weeks at full pay. The employer funds weeks 1 to 14 and social security covers weeks 15 to 18. Paternity leave is 10 paid days. Parental leave extends up to four months unpaid after one year of service and is available until the child turns eight.

Public health insurance

Malta funds its public healthcare system through social security contributions. Both employer and employee each contribute 10% SSC, capped at $32,175 (27,679 EUR), covering pension, healthcare, and unemployment benefits.

Leave entitlements summary

Optional benefits commonly offered include private health top-ups, meal vouchers, flexible and remote work arrangements, professional development funding, transport and housing allowances, and performance bonuses. A 13th month payment is not legally required but is offered voluntarily in financial services.

Work Permits and Visas in Malta

Malta offers several work authorisation routes. The correct path depends on the employee's nationality and the role type.

Employers sponsoring non-EU nationals must apply for a Single Permit and pay approximately $697 (€600) for first applications. From October 2025, employers must also complete the Labour Market Test before submission. EU nationals who stay beyond three months must register with Jobsplus.

Single Permit fees: first permit approximately $697 (€600); renewal approximately $174 (€150) per year; change of employer approximately $697 (€600). Renewal applications must be submitted up to 90 days before expiry. Processing takes up to four months. Refusals can be appealed to the Immigration Appeals Board within three days.

Onboarding New Hires in Malta

Onboarding in Malta is a compliance sequence. Several filings are legally required on or before the employee's first day of work.

Before Day One

• Prepare a compliant EIRA employment contract covering all statutory terms.

• Verify work authorisation for any non-EU hire before the start date.

• Register a PE number with the Commissioner for Revenue if not already done.

Day One

• Sign the employment contract with the new employee.

• Submit the Jobsplus Engagement form, which is mandatory under CAP 594.

• Collect government-issued ID and the employee's IBAN for payroll setup.

First Week

• Register the employee with the Department of Social Security.

• Set up FSS payroll withholding with the Commissioner for Revenue.

• Provide mandatory policy documents and health and safety information required under OHSA Cap. 424.

Beyond the First Week

• Complete any mandatory sector-specific training applicable to the role.

• Confirm whether the Wage Regulation Order (WRO) applies to the employee's sector.

• Schedule the probation review in line with the terms set out in the employment contract.

What our clients are saying

“China's employment regulations are highly nuanced, and we needed confidence that our offers would meet local expectations without risking compliance issues or losing candidates.”

HR Manager

Agratas Corp UK

Read Case Study

NDAs, Confidentiality and IP Protection in Malta

NDAs and IP assignment clauses are enforceable in Malta when drafted within the scope permitted by Maltese contract law and the Employment and Industrial Relations Act (EIRA).

Confidentiality clauses should specify the categories of protected information, the duration of the obligation after employment ends, and the geographic scope of the restriction. IP assignment clauses must explicitly transfer ownership of work created during employment to the employer. Maltese law does not automatically vest intellectual property rights in the employer, so explicit contractual language is required.

GDPR applies to any personal data processed under confidentiality agreements. Employers must establish a lawful basis for processing and apply data minimisation principles. The Information and Data Protection Commissioner enforces GDPR obligations in Malta.

Non-compete clauses are permissible under Maltese law but must be reasonable in duration, geographic scope, and subject matter to be enforceable by Maltese courts.

Termination and Offboarding in Malta

Termination in Malta requires a valid legal ground under EIRA, the correct notice period based on length of service, and written documentation. The burden of proof rests with the employer throughout the process.

Notice periods for indefinite contracts in Malta depend on continuous service under the Employment and Industrial Relations Act. Employees with more than one month to less than six months of service receive one week's notice. Those with six months to less than two years receive two weeks. Employees with two to less than four years receive four weeks, those with four to less than seven years receive eight weeks, those with seven to less than eight years receive nine weeks, those with eight to less than nine years receive ten weeks, those with nine to less than ten years receive eleven weeks, and those with ten years or more receive twelve weeks' notice.

No statutory severance applies in Malta. Final pay must include outstanding wages, accrued unused annual leave, and any contractual entitlements owed at the date of termination.

Employers should complete the following offboarding steps:

• Issue a written termination letter citing the relevant EIRA provision and the reason for termination.

• Calculate and pay outstanding wages and accrued leave in the final payslip.

• Submit the Jobsplus Termination form within four days of the end of employment, as required under CAP 594.

• Revoke system access, collect company property, and close payroll registration if this is the final employee on the Malta payroll.

Business Culture in Malta

Maltese professionals value personal rapport before business discussions. Initial meetings often include social conversation, and building trust matters before moving to formal negotiations.

Hierarchy is respected in traditional industries such as financial services, government, and manufacturing. Technology startups and iGaming companies tend to use flatter structures with more direct communication.

• Decision-making is deliberate. Avoid pressuring for immediate decisions in formal settings. Consensus-building is common, particularly in established organisations.

• Punctuality is expected professionally. Social events may start later than scheduled, but professional meetings follow standard business timing.

• English is the standard business language. Maltese professionals are predominantly bilingual in Maltese and English, which simplifies communication for international employers.

• August is a slower month. Summer holidays and the Feast of the Assumption on August 15 reduce business activity across many sectors.

• Union membership is significant. The General Workers' Union (GWU) and Union Haddiema Maghqudin (UHM) represent large portions of the workforce, particularly in public sector roles and manufacturing.

International employers should account for these cultural norms when setting expectations around timelines, communication, and workforce relations.

Top Sectors to Hire From in Malta

Malta's economy is concentrated in a small number of high-output sectors, each with distinct talent profiles and active hiring demand. International employers targeting Malta should understand where skilled workers are concentrated.

• iGaming and online gaming. Malta is the EU's leading iGaming hub. The sector employs over 10,000 people and contributes approximately 12% of GDP, according to the Malta Gaming Authority (2023). In-demand roles include compliance officers, software developers, UX designers, and data analysts.

• Financial services. Regulated by the Malta Financial Services Authority (MFSA), this sector also contributes around 12% of GDP. Malta is a significant EU fund domicile. Employers seek AML and compliance specialists, fund accountants, and risk managers.

• Technology and software development. Malta Enterprise incentives support a growing startup ecosystem. In-demand roles include full-stack developers, cybersecurity analysts, and cloud engineers.

• Tourism and hospitality. Tourism contributed 27% of GDP before 2020 and has since recovered strongly. Active hiring covers hotel managers and multilingual customer service staff.

• Maritime and shipping. Malta operates one of the world's largest ship registries (Malta Flag, 2023). Employers hire maritime lawyers, port logistics coordinators, and marine engineers.

Employers expanding across European markets can compare talent availability and sector depth by reviewing how to hire employees in Germany alongside Malta hiring options.

Top Cities to Hire From in Malta

Malta's talent is concentrated in a small number of distinct commercial zones, each with its own sector focus.

Valletta is the capital and the primary base for financial services, legal, and government professionals. The Malta Financial Services Authority and major law firms operate here, making it the go-to location for regulated-sector hiring.

Sliema and St. Julian's form Malta's main commercial and iGaming district. Tech startups, iGaming operators, and digital marketing agencies are concentrated in this area. Most internationally mobile talent in Malta lives and works here.

Birkirkara is Malta's largest town by population. Business services and BPO operations are growing there, giving employers access to a broad pool of administrative and customer support candidates.

Mosta, in central Malta, is an emerging location for light manufacturing and logistics operations.

Marsaxlokk and the Freeport area anchor Malta's maritime economy. The Malta Freeport is one of the Mediterranean's largest container terminals and is the primary source of maritime, logistics, and supply chain professionals. Companies also hire employees in Poland when building broader European teams alongside a Malta presence.

Hire Compliantly in Malta with Gloroots

Gloroots acts as the legal employer in Malta, managing employment contracts, Jobsplus employment registrations, payroll, applicable social-security contributions, and other employer-side requirements without requiring you to establish your own Maltese employing entity.

This model is suitable for companies entering the Maltese market, hiring their first employees, or scaling their teams without taking on the administrative requirements of establishing and maintaining a local entity.

• No local entity required: Employ workers in Malta through Gloroots without setting up your own Maltese employing entity.

• Streamlined onboarding: Coordinate employment contracts, Jobsplus Engagement Forms, required registrations, payroll setup, and other onboarding processes as part of the employee's transition to employment. Jobsplus requires the Engagement Form to be submitted on the first day of employment and no later than four working days from the effective employment date.

• Local payroll and compliance: Manage applicable FSS payroll requirements, social-security contributions, statutory funds, tax withholding, employment requirements, and other employer obligations within the agreed scope.

• Predictable pricing: Get transparent per-employee pricing with applicable employer contributions, statutory costs, benefits, and administration fees clearly identified.

• Dedicated compliance support: Access local HR and compliance support for employment contracts, work-permit processes, payroll, leave, benefits, health and safety, data protection, and offboarding, as applicable.

Companies comparing an Employer of Record with establishing their own Maltese entity can assess factors such as expected headcount, duration of operations, administrative requirements, and the cost of maintaining local employer infrastructure. An EOR provides a lower-commitment route for companies that want to hire in Malta without establishing their own employing entity.

Where an EOR's operating model falls within Malta's regulated temporary-work or outsourcing framework, the applicable DIER licensing requirements should also be satisfied.

Put your hiring plan into action

Create an account to move from Hire Compliantly in Malta with Gloroots to your next compliant step.

Sign up

Frequently Asked Questions About Hiring in Malta

What are the minimum wage rates in Malta?

Malta sets a national minimum wage of approximately $258 (€221.78) per week for employees aged 18 and above as of January 2025. Employees aged 17 receive approximately $250 (€215.00) per week, and those under 17 receive approximately $247 (€212.16) per week.

Sector-specific Wage Regulation Orders may set higher floors than the national minimum. Employers should check the DIER WRO list for their industry before setting any pay rate.

What work permits does Malta require for non-EU employees?

Non-EU nationals require a Single Permit before starting work in Malta. The first application costs approximately $697 (€600), and the standard permit duration is one year.

Fast-track routes include the Key Employee Initiative, which requires earnings of at least approximately $52,309 (€45,000) per year, and the Specialist Employee Initiative, which requires at least approximately $34,873 (€30,000) per year plus a recognised qualification. Processing takes up to four months. A Labour Market Test becomes mandatory from October 2025.

How does termination work in Malta?

Employers must have a valid ground under the Employment and Industrial Relations Act, covering performance, misconduct, or redundancy. Notice periods range from one week during probation to up to six months after ten or more years of service.

A written termination letter is required in every case. The Jobsplus Termination form must be submitted within four days of the termination date. No statutory severance payment applies under Maltese law.

What statutory benefits must employers provide in Malta?

Maltese law requires a minimum of 192 hours of annual leave and 14 public holidays per year. Employers must also provide 10 days of employer-paid sick leave, 18 weeks of maternity leave at full pay, 10 days of paternity leave, and 4 months of unpaid parental leave.

Four statutory bonus payments are required each year, totalling approximately $595 (€512) annually per employee. These obligations apply to all employees regardless of contract type or working hours arrangement.