Employment taxes

• Income tax: Malta uses a progressive income tax system, 0% on income up to €12,700 and 15%–35% for higher brackets (up to €60,000+).
• Social security contributions: Employees contribute 10% of their basic weekly wage, while employers match this with another 10%.
• Payroll tax: Withheld automatically by the employer each month.

Leave policy

• Vacation leave: Minimum 24 working days per year (plus 14 public holidays).
• Sick leave: 2 working weeks per year on full pay (with a medical certificate). The first three days are covered by the employer, from day 4 onwards the social security takes over.
• Maternity leave: 18 weeks fully paid, with 14 weeks paid by the employer, and 4 weeks paid by the social security.
• Paternity leave: 1 day paid by the employer.
• Parental leave: Up to 4 months unpaid, can be shared between parents.

Employment termination

Either party may terminate employment with notice:

• Notice periods range from 1 to 12 weeks, depending on length of service.
• Employees can resign with notice. Employers must provide valid reasons (misconduct, redundancy, etc.) and issue a final payslip.
• Severance isn’t mandatory unless agreed by contract or collective agreement.

Hiring and contracts

• Written employment contracts are mandatory and must outline job title, salary, working hours, leave entitlements, and notice terms.
• Probation periods usually last up to 6 months.
• Part-time, full-time, and fixed-term contracts are all common.

Payroll and salary payment

• Salaries are paid monthly, usually via bank transfer.
• The national minimum wage for 2025 is €221.78 per week for full-time employees aged 18+.
• Overtime pay applies beyond 40 hours weekly.

Benefits

Mandatory:

• Social security coverage
• Paid leave and public holidays
• Sick pay (within statutory limits)
• Maternity/paternity leave

Optional:

• Private health insurance
• Meal allowances or vouchers
• Transport subsidies
• Performance bonuses
• Flexible work or hybrid options

Monthly living cost (Valletta Edition)

Average monthly expenses for a single person:

• Rent (1-bedroom in city centre): €900-€1,300
• Utilities: €100-€150
• Groceries: €250-€400
• Transport: €40-€70
• Dining & leisure: €200-€350

Expect around €1,500-€2,200/month for comfortable living.

How to get a local ID number (eResidence Card)

All residents and workers need an eResidence Card.

1. Apply through Identità once you have a job or residence permit.
2. Bring your passport, work contract, rental agreement, and proof of insurance.
3. Remote workers can apply for the Nomad Residence Permit, valid for one year and renewable.

Social security registration

• Employers handle registration with the Department of Social Security.
• If self-employed, register directly with the department to get your social security number (SSN).

Banking

Opening a local bank account is straightforward once you have your eResidence card.
Popular banks:

• Bank of Valletta (BOV)
• HSBC Malta
• APS Bank
• MeDirect Bank

Most expats prefer online banking for easy setup and English-language support.

Housing and rental process

• Most rentals require a 1-month deposit + 1 month’s rent upfront.
• Contracts should be registered with the Housing Authority.
• Tenant rights: You can’t be evicted without notice, landlords must respect agreed rent duration and give at least 3 months’ notice for termination.

Healthcare system

• Malta offers universal healthcare for residents, contributing to social security.
• Public hospitals are high-quality, and private clinics are affordable and fast.
• EU citizens can use their European Health Insurance Card, while non-EU residents may need private insurance until registered.

Driving and public transport

• You can drive with your EU licence, while non-EU residents can convert theirs after 12 months.
• Traffic drives on the left.
• Public transport (Malta Public Transport) covers most routes. A monthly pass costs around €26.
• E-scooters and ferries are also popular for short trips.

Emergency and important contacts

• Emergency number: 112 (police, ambulance, fire)

Work permit and visa requirements

EU/EEA citizens:

• No visa needed. You can work freely, but must register for residence after 3 months.

Non-EU citizens:

• Need a single work permit, combining employment and residence.
• Application handled through Identity Malta with support from the employer.
• Typical processing time: 2–3 months.

Work culture and business norms

• Punctuality and politeness matter, but meetings are relaxed and friendly.
• Dress code varies: formal in finance and law, smart casual in tech and startups.
• Expect a Mediterranean pace: focused at work, easy-going after hours.