Potential job candidates need a reason to go from being potential candidates to official employees. Often, those reasons are compensation and benefits. If your company can provide an exceptional level of compensation and benefits, you’ll stand out from the competition and encourage greater retention rates among employees.
However, many companies don’t know Malta’s compensation laws or statutory benefit requirements. That’s why G-P offers Malta benefits and compensation outsourcing as part of our solution. We’ll use our Malta EOR to give your employees the compensation and benefits they deserve while shouldering all compliance.
Malta Compensation Laws
Malta last raised its minimum wage by 1.75 Euros a week in January 2022. Full-time adult employees must be paid at least EUR 925.34 per month. Employers may pay employees by bank transfer, cash, or cheque, provided wages are paid in full and on time. The payment method should match the employment agreement and give employees clear access to their net pay. Employees and employers typically agree on the period for salary payments, whether it’s weekly, bi-weekly, or monthly.
Guaranteed Benefits in Malta
Once you start setting up your Malta benefits management plan, you need to make sure you have all the statutory benefits listed first. All employees working 40 hours a week generally need to get 192 hours of paid annual leave. This equals 24 working days, or about four weeks and four working days. The exact yearly entitlement can vary when public holidays fall on weekends. Malta also provides sick leave according to the relevant Wage Regulation Order for specific sectors. Employees commonly receive around two working weeks of paid sick leave each year, but the exact entitlement depends on the applicable Wage Regulation Order and employment terms. Employers generally require a medical certificate to justify sick leave.
One unique aspect of Malta’s benefits laws is that each parent can take four months of unpaid parental leave per child. This generally applies for birth, adoption, foster care, or legal custody until the child turns eight. However, employees generally become eligible for parental leave after 12 months of continuous service with the same employer.
Malta Benefits Management
In addition to benefits required by law, you should provide market norm benefits that employees may expect. For example, try giving out performance-based bonuses, a private health insurance plan, or some sort of retirement benefits. Look at what other employers in your industry provide, and even ask employees what benefits they would appreciate the most.
Restrictions for Benefits and Compensation
Companies cannot expand to Malta and begin working immediately. They generally do not need a registered subsidiary solely to hire employees and provide compensation and benefits. However, they must meet Maltese employer, payroll, tax, social security, and employment law obligations, and may need a local setup depending on the employee’s role and business activities. However, your business will have to spend months trying to set up a subsidiary, which can delay your chance to work in the country.
G-P is a global EOR with subsidiaries in countries around the world. When you partner with us, you can use our Malta subsidiary for your expansion instead of having to set up your own. Choosing Malta benefits and compensation outsourcing with us means you won’t have to worry about Malta’s compensation laws or create your own Malta benefits management plan.
Partner with G-P to build your global teams
With G-P — the #1 rated employer of record — you can offer global employees competitive benefits to meet country-specific regulations and norms. Easily administer benefits plans through our global employment platform and give your team a hassle-free employee experience.
Book a demo to learn more about our global employment products and EOR solutions.