Expanding your business to Malta offers access to a skilled and multilingual workforce in a strategic European location. The growing workforce is a cornerstone for global businesses seeking international reach. However, navigating Maltese employment law to hire talent and manage global payroll requires significant local expertise. Handling both employment and tax regulations is vital. Establishing a local subsidiary can be a lengthy and costly process, creating a barrier to rapid growth. This is where a Malta Employer of Record can transform the process.

G-P’s employer of record (EOR) solution provides a streamlined pathway to hiring a team in Malta, ensuring compliance with labor laws. We allow you to hire employees and manage payroll compliantly without the need to set up a local branch office or subsidiary. Your chosen candidate is hired through our compliant local entity and onboarded in days, not months, minimizing the onboarding time. They become a productive member of your team, dedicated to your company’s goals, while we handle the complexities of HR, payroll, and compliance on your behalf.

Hiring in Malta

Malta is an island nation in the Mediterranean Sea with a population of over 540,000. As a member of the European Union, it is one of the world's smallest and most densely populated countries. Its capital city is Valletta, and the official languages are Maltese and English, which simplifies international business operations. When preparing to hire in Malta, it is essential to understand the local labor regulations that govern employment relationships. This includes understanding employee rights concerning work hours, overtime, and leave entitlements.

Employment contracts in Malta

While an employment agreement can be verbal, Maltese law requires employers to provide employees with a written statement of key employment conditions within 7 working days of their start date. It is a strong best practice to have a comprehensive, written employment contract in place from day one.

Contracts can be for an indefinite period or a fixed term. A series of successive fixed-term contracts is generally limited to a cumulative maximum of 4 years. After that, employment is typically considered indefinite unless the employer can justify renewal on objective grounds. All offer letters and contracts must state salary and compensation amounts in euros (EUR).

As your EOR in Malta, G-P ensures all employment contracts are compliant with local laws, drafted in the appropriate language, and include all mandatory terms covering compensation, benefits, and termination protocols.

Working hours and probation in Malta

A standard full-time workweek is generally 40 hours. Working time must also generally stay within an average 48-hour weekly limit, including overtime. The statutory probation period is generally 6 months. It may be set at 12 months only for employees in technical, executive, administrative, or managerial positions who earn at least double the national minimum wage, and the contract should clearly state the probation period.

During probation, if employment has lasted longer than 1 month, either party must give a 1-week notice period for termination.

Statutory benefits and leave in Malta

Managing statutory benefits is a core function of an EOR. In Malta, key entitlements include: public holidays, paid leave, and benefits, all maintained to comply with statutory laws.

Malta public holidays

Malta observes 14 holidays each year in total, made up of 5 national holidays and 9 public holidays. A unique provision in Maltese law states that when a national or public holiday falls on a Saturday or Sunday, employees are generally entitled to an additional day of vacation leave for that calendar year.

  • New Year's Day (January 1)

  • Feast of Saint Paul's Shipwreck (February 10)

  • Feast of Saint Joseph (March 19)

  • Freedom Day (March 31)

  • Good Friday (date varies)

  • Labour Day (May 1)

  • Sette Giugno (June 7)

  • Feast of Saints Peter and Paul (June 29)

  • Feast of the Assumption (August 15)

  • Feast of Our Lady of Victories (September 8)

  • Independence Day (September 21)

  • Feast of the Immaculate Conception (December 8)

  • Republic Day (December 13)

  • Christmas Day (December 25)

Malta annual leave (Vacation)

Full-time employees are generally entitled to at least 192 hours of paid annual leave per year. This equals 24 working days for a 40-hour workweek, with any pro-rating or weekend public holiday additions applied where relevant. This is in addition to the extra leave days granted for public holidays that fall on weekends. With employer agreement, employees can carry over up to 50% of their annual leave entitlement to the following year.

Malta sick leave

Employees in Malta are entitled to paid sick leave, funded initially by the employer. The statutory minimum amount of sick leave can vary by industry. Employees covered by a sector-specific Wage Regulation Order should receive at least the sick leave entitlement set by that order.

Malta parental leave

Malta provides statutory maternity, paternity, and parental leave, ensuring employees have job-protected time off for family responsibilities. These leaves are governed by specific eligibility criteria and payment structures, which G-P manages for all employees on our platform.

Taxes and payroll in Malta

Employers and employees in Malta must contribute to the national social security system, which funds pensions, sickness benefits, and other social programs. Income tax is progressive, with rates depending on the employee's income level and filing status. As your EOR, G-P manages all Malta payroll functions, including calculating and withholding the correct amounts for taxes and social security and ensuring timely payments to the authorities.

Termination and severance in Malta

Terminating an employment contract after the probationary period requires a just cause and adherence to statutory notice periods, which increase based on the employee's length of service. Failure to follow proper procedures can lead to claims of unfair dismissal. G-P helps manage all termination and severance processes in compliance with Maltese labor law, mitigating risks for your company.

Why choose G-P as your employer of record in Malta?

G-P EOR is the award-winning, AI-powered SaaS platform that empowers ambitious companies to build global teams. Onboard, manage, and pay top talent in over 180 countries in minutes, bypassing the typical time, cost, and complexity of local entity setup. G-P EOR is the preferred partner for leading HCM, PEO, and payroll platforms. Bring your workforce data together in one place to maintain existing workflows while guaranteeing consistent and accurate data across your integrated systems.

Request a proposal today to learn more.