The major and significant challenge businesses in Malta have at present is to engage and hold on to their employees. A competitive salary and a great benefits package attract employees. It is of utmost importance to offer the right salary and benefits package. This to recruit the best job-seeker that fits the position.
The majority of businesses in Malta provide health insurance and annual bonuses. Yet the high in-demand benefit requested by individuals are flexible working conditions. Followed by career development opportunities. Companies that provide these benefits will be the most attractive to job-seekers.
What is the Average Salary in Malta?
The 2021 average annual basic salary in Malta amounted to approximately €19,359. With the average rate per hour being €9.31. The National Statistics Office (NSO) undertakes various labour market surveys. The latest Labour Force Survey for Quarter 4 of 2021 shows the average monthly basic salary at €1,613. This basic average salary ranges from €970 among elementary occupations to €3,037 among managers.
Yet specialists working in Malta earn a higher annual gross salary. On average a financial controller earns up to €70,000 per year. A UX/UI designer can earn up to €36,000 per year. While a project manager could expect an annual salary of around €50,000. The highest paying jobs are those at C-Level. On average these individuals can pocket anything around €200,000 per year.
Consider that salaries are dependent on the career chosen. Also, higher education brings a higher salary. Many people pursue with their studies as a tactic to switch into jobs yielding a higher salary. On average a person with a Doctorate Degree obtains a starting gross salary of €47,352. A person with a Masters Degree makes an average starting gross salary of €45,973.
Earnings differ according to the person’s experience. The more the years of experience the higher the gross salary. People with 16+ years of experience on average receive salary of €53,697. The experience level is one of the most important factors in determining salary.
What is Malta’s Minimum Wage?
Updated on 09.05.2024
The national minimum wage in Malta for 2022 amounted to €792.30 per month or €9,507.60 per year. This being the lowest salary that an employer may pay its employees.
Malta’s minimum wage was revised with effect on 1st January 2024. The national minimum wage increased from €192.73 to €213.54 per week. This amounts to €11,104.08 per year which equates to €5.34 per hour.
Sectoral Wage Regulation Orders govern certain industries in Malta. The wages stipulated in the Wage Regulation Order supersede the national minimum wage.
Salaries by Sector in Malta
The Education Sector
The monthly average salary of a school teacher is €1,216. Whilst a kindergarten teacher earns around €936. A headmaster gets a monthly average salary of €2,433. Salaries are a bit higher in the tertiary education system. A university lecturer gets around €2,133 and a college teacher on average earns €1,675 per month.
The Medical Sector
On average the income of a general practitioner is €4,032 per month. That of a doctor working at the local hospital is of €5,800 per month. Whilst a nurse on average earns €2,870 per month.
The Law Enforcement Sector
The salary of a police officer and military staff depend on the rank and position. Yet, the average monthly salary is €1,675.
Catering Industry
On average the salary of a chef employed in a restaurant is of €1,900 per month. A barista earns around €867 and a waiter €1,040. A hotel receptionist’s average monthly salary is of €1,200.
Construction industry
The average monthly salary in construction is about €1,870. The average salary per month of a civil engineer is €3,574. That of a crane operator is €1,824 and that of a construction worker is €1,366.
IT
The average income per month for persons pursuing a career in information technology in Malta is €3,650.
Professional Services
The average monthly salary depends on the service offered and volume of activity. A clerk earns an average salary of €1,525 per month. A finance manager gets around €3,000 per month and a lawyer on average earns €3,200 per month.
Retail Sector
The average monthly income for sales assistants is €1,067 and that of the store manager is €1,440.
Transport and Logistics Sector
The average monthly salary in the transport industry is around €1,067. This sector includes drivers, delivery men and car mechanics.
Salary comparison by Gender and District
A survey undertaken by NSO in 2019 has provided some insight on salaries in Malta. It was identified that these differ by gender and the place where you live. Though salaries should not differ by gender reality proves otherwise.
On average a male employee earns 5% more than a female counterpart. This situation is across all industries. Men receive an average gross annual salary of €20,974. Women on average earn an gross annual salary of €17,771.
Earnings on the island different also by location of residence. People residing in the western district earn a higher average gross annual wage. This being the case for both men and women. On average a person receives a salary of €21,415. The lowest average salary was in the southern harbour area. Here, on average a person receives a salary of €17,530.
Net Salary Calculation in Malta
The salary you negotiate with your employer is the gross annual salary. This together with the pay day are listed on an employee’s contract of employment. Consider that most companies pay their employees’ salaries on the last day of every month. Yet companies have different policies. Some may effect the payroll run on the last Friday of each month or every fortnight. Employers pay their employees’ salaries in their local bank account. Yet exceptions exist and another settlement method is payment by cheque.
Classification of jobs is either full-time or part-time. Full-time positions pay a fixed monthly salary irrespective of the hours worked. Part-time jobs pay a wage per hour worked. In Malta full-time employees work 40 hours per week. Though they have the option to work reduced hours given their employer’s consent.
A considerable difference between full-time and part-time employment is eligibility to paid overtime. In general salaried employees are not paid for overtime. Unless specified in the contract of employment.
Salary stated in a contract of employment is the gross annual salary. This includes taxes and social security contributions due. Net salary is the amount received by employee after the deduction of taxes and contributions. This being the take home pay.
Calculation of the net salary in Malta takes into consideration the following factors:
Taxation
Income earned and marital status determine the amount of tax paid by each employee. The employer deducts tax due from the gross salary. The amound deducted is based on the information supplied by the employee.
Non-residents are taxed at a higher rate for the for the first 183 days of having relocated. After this timeframe elapses the standard Maltese tax rates apply. Refer to rates on the Commissioner of Revenue Website – https://cfr.gov.mt/en/rates/Pages/TaxRates/Tax-Rates-for-NonResidents.aspx.
Malta has 3 categories of taxation rates these being single, married or parent. The tax brackets for each category differ based on the taxpayer’s status.
| Chargeable Income (€) | |||
| From | To | Rate | Subtract (€) |
| Single Rates |
|||
| 0 | 9,100 | 0% | 0 |
| 9,101 | 14,500 | 15% | 1,365 |
| 14,501 | 19,500 | 25% | 2,815 |
| 19,501 | 60,000 | 25% | 2,725 |
| 60,001 | and over | 35% | 8,725 |
| Married Rates | |||
| 0 | 12,700 | 0% | 0 |
| 12,701 | 21,200 | 15% | 1,905 |
| 21,201 | 28,700 | 25% | 4,025 |
| 28,701 | 60,000 | 25% | 3,905 |
| 60,001 | and over | 35% | 9,905 |
| Parent Rates | |||
| 0 | 10,500 | 0% | 0 |
| 10,501 | 15,800 | 15% | 1,575 |
| 15,801 | 21,200 | 25% | 3,155 |
| 21,201 | 60,000 | 25% | 3,050 |
| 60,001 | and over | 35% | 9,050 |
Social Security Contributions (SSC)
Social Security Contributions are paid by the employee and employer. There are 2 classes of social security contributions these being Class One and Class Two.
Class One
Class One social security contribution payments are based on the weekly wage earned and age. This contribution covers social security payments in case of sickness, injury benefits, unemployment, pensions and child benefits.
Class One social security contributions for 2022 are further categorised as following:
| Catergory | Description |
| A | Persons under 18 years of age earning not more than the amount indicated below. |
| B | Persons aged 18 and over, earning not more than the amount indicated below. |
| C | All persons whose basic weekly wage is between the amounts indicated below. |
| D | All persons whose basic weekly wage is equal to or exceeds the amount indicated below. |
| E | Students* under 18 years of age. |
| F | Students* 18 years old and over. |
| Catergory | From | To | By Employee | By Employer | Total | Maternity |
| A | 0.10 | 182.83 | 6.62 | 6.62 | 13.24 | 0.20 |
| B | 0.10 | 182.83 | 18.28 | 18.28 | 35.56 | 0.55 |
| Persons born up to 31st December 1961 | ||||||
| C | 182.84 | 378.98 | 10% | 10% | n/a | 0.30% |
| D | 378.99 | n/a | 37.90 | 37.90 | 75.80 | 1.14 |
| Persons born from 1st January 1962 onwards | ||||||
| C | 182.84 | 499.73 | 10% | 10% | n/a | 0.30% |
| D | 499.74 | n/a | 49.97 | 49.97 | 99.94 | 1.50 |
| E | n/a | n/a | 10% Max.4.38 | 10% Max.4.38 | n/a | 0.3% Max.0.13 |
| F | n/a | n/a | 10% Max.7.94 | 10% Max.7.94 | n/a | 0.3% Max.0.24 |
Class Two
Individuals earning more than €910 from an economic activity and who are not employed are to pay Class Two social contributions. There are two categories of Class Two contributions these being:
- Self-occupied people earning an annual income of more than €910. Income is to be from trade, business, profession, vocation. Or any other economic activity.
- Self-employed individuals receiving income from rents, investments, capital gains or any other income.
The rates charged are based on the annual net profit. Or income for the year preceding the contribution payment year. For rates refer to the Commissioner for Revenue website – https://cfr.gov.mt/en/rates/Pages/SSC2/SSC2-2022.aspx
What are the Employee Benefits in Malta?
Updated on 09.05.2024
Employees are entitled to a statutory bonus. Paid on a quarterly basis by the employer in addition to the monthly salary. On an annual basis this amounts to €512.
Also, employee wages are adjusted with the cost of living allowance (COLA) on an annual basis. This amounted to €1.75 a week in 2021 and 2022. There was a significant increase in this amount during 2023 and 2024. The COLA amount for 2023 was €9.90 per week. For 2024 this amounted to €12.81 per week.
Salary Increments in Malta
On average employees in Malta get a salary increment of 4% every 29 months. Salary raises are not the same across board. They depend on the individual’s achievement and contribution towards the company’s success. These are determining factors on the quantity and frequency of the increase.
Companies in successful industries tend to offer higher and frequent salary increases. In general, the salary increases are higher based on the employees’ experience level. This is quite understandable. Employers put in more effort to keep the experienced staff as these are harder to come by. During 2021 top management saw an increase of 15% to 20% whilst junior staff between 3% to 5%. Mid-Career to senior level had an increase between the range 6% to 15%.
Types of Incentives given in Malta
Recent local surveys carried out show that 63% of surveyed staff do not receive any bonus. The remaining 37% received a monetary bonus ranging from 3% to 6% of their annual salary.
The most common bonus awarded to employees is the performance bonus. That is a reward for exceptional performance. Another popular bonus is a goal – based bonus. An employee is awarded a bonus based on a set target. Once the target is attained it triggers the bonus.
Other bonuses given to employees though uncommon in Malta are company performance bonuses and end of year bonuses. Company performance bonuses are paid to employees based on the company earnings. Companies grant such a bonus to all employees. But will differ from one employee to another based on their position within the company.
People employed in certain industries with specific careers have higher bonus prospects. Employees in marketing, advertising, sales, business development have a higher chance of getting a bonus. As opposed to employees in construction, transport and hospitality.
Top management team obtains higher bonuses than staff at junior levels. This is inherent to the nature of responsibilities shouldered by those being higher in the hierarchy.
Employees considered to be revenue generators receive higher and more frequent bonuses. Than those in supporting roles. Their contribution to the company in monetary value is more quantifiable and measurable. Such as an advertising executive working for a marketing company. As opposed to an advertising executive in the marketing department of a private hospital.
The Future of the Maltese Labour Market
The Maltese labour market is full of job opportunities.
Recent years saw an increase in regulatory roles. Such as those relating to legal, compliance and money laundering reporting officers. Besides, the accounting and audit professionals saw a significant growth in their demand given their supporting nature. These professionals are a requisite in the thriving industries of iGaming, Corporate Service Providers and Financial Services. The great demand for these roles led to an increase in salaries.
Check out the annual salary guides issued by recruitment agencies. These help employees know their worth and what jobs are on offer. Employers can use such guides to identify the key trends in the labour market for each sector.
At present in Malta there continues to be many career opportunities. Especially in the Payments sector, in particular crypto, the Fintech and iGaming industries. As well as Insurance, Banking and Professional Service sectors have a significant number of open positions.
