Employment in Malta

Malta enjoys one of the lowest unemployment rates in Europe, hovering steadily around 3%. Over the past decade, rapid economic growth has transformed the island into an employee's market. With foreign workers now making up a significant percentage of the workforce, local businesses frequently face challenges in filling vacant positions, leading to an increasing reliance on expatriate talent from both within and outside the European Union.

The job market is highly polarized. On one hand, there are booming, high-paying sectors such as iGaming, Finance, and IT that aggressively recruit international professionals. On the other, essential sectors like Hospitality, Healthcare, and Construction rely heavily on Third-Country Nationals (TCNs) to sustain operations.

When discussing salaries in Malta, it is vital to distinguish between the highly lucrative international sectors and the more traditional local economy. For a stable standard of living in 2026, considering the rising cost of rent and utilities, a single person typically needs around €1,800–€2,000 net per month, while a family of four requires roughly €3,200–€3,800 net per month.

The national gross average salary hovers around €22,000 to €25,000 annually. However, salaries in the iGaming and Tech sectors often start much higher. In contrast, many entry-level or service industry roles pay closer to the minimum wage, which makes navigating the cost of living challenging for some workers.

Malta utilizes a progressive income tax system, alongside mandatory National Insurance (Social Security) contributions. Taxes are automatically deducted from your salary by your employer under the Final Settlement System (FSS). At the end of the year, your employer will provide an FS3 form, which details your gross earnings, tax paid, and NI contributions.

Both the employer and the employee pay National Insurance. For most employees, the contribution is roughly 10% of the basic weekly wage, up to a maximum weekly cap (usually around €50-€55 per week depending on the exact year and wage bracket). This contribution entitles you to public healthcare, unemployment benefits, and eventual pension rights.

Income tax is calculated based on three main statuses: Single, Married (filing jointly), and Parent. The exact thresholds are adjusted periodically in the National Budget, but the progressive brackets generally follow this structure:

• 0% Band: The first portion of your income is tax-free (e.g., up to €9,100 for Single rates).
• 15% Band: Applied to the next tier of income.
• 25% Band: The standard rate for middle-income earners.
• 35% Band: The highest bracket, applied to earnings exceeding approximately €60,000.

Note: Highly Qualified Persons (HQPs) in specific sectors (like finance, aviation, and gaming) earning over €75,000 may be eligible for a flat 15% tax rate under specific residency schemes.

All employment in Malta must be governed by a written contract that outlines the job title, working hours, salary, and leave entitlements. The law sets clear boundaries for how the employment relationship begins and ends.

The standard probation period in Malta is six (6) months unless a shorter period is agreed upon in the contract. For executive, technical, or highly specialized management positions (where the salary exceeds a certain statutory threshold), the probation period can be extended up to one (1) year.

During the probation period, either the employer or the employee can terminate the employment without providing a reason. However, notice periods still apply:

• First month of employment: 1 week's notice.
• One to six months of employment: 1 week's notice.
• If probation is extended beyond six months: 2 weeks' notice.

Once the probation period is successfully completed, the employee becomes a permanent staff member (if on an indefinite contract), and standard termination and redundancy rules apply.

Maltese labour law is strongly aligned with European Union directives, ensuring robust protections for workers regarding time off, sickness, and working hours.

• Working Hours: The standard full-time work week is 40 hours. By law, maximum working hours (including overtime) cannot exceed 48 hours per week on average, unless the employee voluntarily signs an opt-out waiver.
• Vacation Leave: Full-time employees are legally entitled to 192 hours (24 working days) of paid vacation leave per year. Additionally, when public holidays fall on a weekend, employees are granted extra leave days to compensate.
• Sick Leave: Sick leave entitlement varies slightly depending on the specific Wage Regulation Order of the industry. However, the standard is usually two working weeks (around 15 days) of fully paid sick leave per year, requiring a medical certificate from a registered doctor starting from the first or second day of absence.
• Maternity & Paternity Leave: Pregnant employees are entitled to 18 weeks of maternity leave (14 weeks fully paid by the employer, 4 weeks paid by the government). Paternity leave and broader parental leave directives are also in place, aligning with EU work-life balance standards.

JobsPlus is Malta's national public employment agency. It acts as the central hub for regulating the labour market, assisting job seekers, and monitoring employer compliance. Whether you are an EU citizen or a Third-Country National, your employment must be officially registered with JobsPlus.

When you are hired, your employer is legally obligated to submit an "Engagement Form" to JobsPlus. Similarly, when your employment ends, a "Termination Form" must be filed within four working days. JobsPlus maintains a record of your employment history in Malta, which is crucial for proving residency, calculating tax, and applying for social security benefits.

For job seekers, JobsPlus offers free registration, career counselling, training courses, and a portal matching candidates with local employers. It also plays a critical role in the work visa process by conducting the "Labour Market Test," ensuring that a job cannot be filled by a Maltese or EU/EEA citizen before approving a license for a Third-Country National.

In Malta, employment can be terminated for valid reasons (such as redundancy or disciplinary dismissal) after the probation period. "At-will" employment does not exist; an employer must have just cause.

If an employee is made redundant (laid off due to the role no longer existing or company downsizing), the employer must follow the "Last In, First Out" rule within that specific job category. This means the most recently hired employee in that role must be the first to be made redundant.

Severance Pay: Unlike some European countries, Malta does not have a statutory requirement for large, automatic severance payouts based on years of service upon redundancy, unless explicitly stated in a collective agreement or the individual's employment contract. However, the employer must pay out:

• All pending wages.
• Payment for any unutilized vacation leave.
• Wages for the duration of the notice period, if the employer asks the employee not to work during that time.

Notice Periods: Based on continuous service, notice periods range from 1 week (for 1-6 months of service) up to 12 weeks (for more than 10 years of service).

While EU/EEA and Swiss citizens have the right to work in Malta without a visa (requiring only basic registration for stays over 90 days), Third-Country Nationals (TCNs) must obtain a Single Work and Residence Permit. The system has undergone significant regulatory tightening between 2024 and 2026.

The Single Permit procedure is employer-driven. You must have a confirmed job offer before the application can be submitted to Identità (the government agency handling expatriates). The permit binds you to that specific employer; if you resign or are terminated, you have a 60-day grace period to find a new employer and submit a new application, or you must leave the country.

Important 2025/2026 Rule Changes:

• Pre-Departure Certificate: TCNs applying from abroad must complete a mandatory online course and interview to obtain a Pre-Departure Certificate before the Single Permit application can proceed.
• Tourism Skills Pass: TCNs seeking employment in the hospitality and tourism sectors must successfully pass the Malta Skills Pass requirements before approval.
• Accommodation Attestation: All applicants must provide a lease agreement registered with the Housing Authority, alongside a Professional Attestation Form verified by a notary or lawyer.
• Tourist Visa Ban: TCNs already in Malta on a standard tourist visa are no longer permitted to apply for a work permit from within the country; they must apply from their home country or await decisions from abroad.