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Hire and manage employees in Malta

As your Employer of Record (EOR) in Malta, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
November 13, 2024
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Quick facts


Malta is a Southern European island nation known for its strong sectors in tourism, finance, and gaming, all of which significantly contribute to its economy. The country has a mixed economy, with both private and government employment opportunities, fostering a high standard of living. Malta’s labor market is well-regulated, ensuring fair treatment and comprehensive benefits for employees under established labor laws.

Employment Contracts

Both fixed-term and indefinite-term employment contracts are permitted in Malta. Fixed-term contracts are limited to a maximum duration of 4 years.

Probation Period

The probation period can last up to 12 months. If employment is terminated during probation and the employee has served over one month, a one-week notice period is required.

Working Hours

Standard working hours are set at 40 hours per week, with a maximum average of 48 hours over a 17-week period. Overtime is compensated at 1.5 times the regular hourly rate for hours worked beyond 40 per week.

Vacation Days

Employees are entitled to a minimum of 192 hours of vacation annually, equivalent to 24 days. Additional time is granted to account for public holidays that fall on weekends.

Sick Leave

Employees are typically granted 10 days of fully paid sick leave per year, though providing 12 days is common. The employer pays for the first three days of any sick leave claim. For extended illnesses, Social Security provides up to 156 days of sick pay, with possible extensions based on medical board recommendations.

Wages and Salary Payment

Employees receive their agreed annual salary in 12 equal monthly installments, usually paid by bank transfer. Monthly and ad hoc bonuses may be included in the contract, and all are subject to tax.

Public Holidays

Malta observes a total of 14 public holidays each year, comprising 9 public holidays and 5 national holidays.

Employer Taxes

Employers contribute to social security based on the employee’s wage category. Additional employer obligations include payment of the annual government bonus, maternity fund contributions, and the Cost of Living Allowance (COLA).

Employee Taxes

Employees contribute 10% of their wages to social security, with additional percentages determined by income level. The maternity fund contribution stands at 0.3% of eligible wages.

Notice Period

The required notice period is determined by the employee’s continuous length of service:

  • Up to 1 month: No notice required
  • 1–6 months: 1 week
  • 6 months–2 years: 2 weeks
  • 2–4 years: 4 weeks

Extended notice periods can be agreed upon for technical and managerial roles.

Termination and Severance Pay

Indefinite-term contracts can only be terminated for valid reasons or by mutual consent. Termination of fixed-term contracts requires compensation, set at 50% of the salary due for the remaining contract period.

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