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Hidden Gems: Hiring Remote Workers in Malta

August 6, 2024

Malta is an enchanting island in the Mediterranean known for its crystal-clear waters and rich history. Its position between Europe, North Africa, and the Middle East offers a unique blend of ancient charm and modern conveniences.

Malta enjoys a stable economy, has a highly skilled multilingual workforce, and the government provides attractive tax incentives. Remote workers in Malta also enjoy a high quality of life, making it an ideal place for attracting and retaining top talent for global hiring.

Advantages of Hiring in Malta

One of the primary benefits of hiring in Malta is the country’s bilingual workforce, with 88% of the population speaking English, one of two official languages. Malta also has a healthy economy, low hiring costs, and a convenient time zone (UTC+1) for collaboration with team members in multiple geographic regions.

The National Skills Council promotes a work-based learning approach to help students obtain the skills they need to succeed in business. In addition to their regular schooling, students participate in apprenticeships, workshops, job shadowing, and more.

This hands-on learning approach helps Maltese students acquire practical skills desired by both local and foreign companies seeking to tap into the talent pool of potential remote employees.

Here are some key facts about Malta:

  • Languages: English and Maltese
  • Currency: Euro (EUR)
  • Capital City: Valletta
  • Population: 536,740
  • Cost of living rank: 33rd

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Investment Opportunities in Malta’s Workforce

The Maltese government encourages foreign workers to move to the country by providing a supportive environment for integration and employment. This includes career guidance policies and initiatives like Personal, Social, Career Development (PSCD).

PSCD is a critical component of the Maltese educational system, focusing on developing students’ social and career skills.

The European Union is investing EUR 124.4 million in the European Social Fund (ESF), contributing to Malta’s 2030 social targets and supporting projects promoting education, training, and access to employment and healthcare.

Common job sectors in Malta include:

  • Information Technology (IT)
  • Gaming
  • Finance and legal
  • Pharmaceutical and medical
  • Tourism
  • Marketing and sales

Employment Laws: Hiring Compliantly in Malta

Employment Contracts

Malta recognizes both fixed-term and indefinite contracts, and employers must provide written contracts within eight days of the employee’s start date.

Employment contracts must clearly state terms such as wages, working hours, overtime pay, and leave entitlements. Contracts should also include identification details for the employee and employer, place of work, and salary specifics.

Working Hours & Pay

The typical workweek in Malta is 40 hours. Employees can legally work up to 48 hours weekly — but only for a maximum of 17 weeks. The national minimum wage for full-time employees 18 and over is EUR 213.54 per week as of January 1, 2024.

Overtime pay varies by industry and is regulated by the Wage Regulation Order (WRO). If the WRO does not cover the employee, overtime is paid at 150% of the standard hourly rate.

Probation Period

Probation periods in Malta vary based on contract length. For fixed-term contracts, the minimum duration must be at least six months. Renewals for the same role do not require a new probation period.

For fixed-term contracts, the probation period varies based on the length of the contract. The probation period for indefinite contracts is six months — unless agreed otherwise by the employer and employee.

Employer Taxes

Employers and employees must each contribute 10% of the employee’s gross salary to the social security system. Employers may also need to pay an annual government-mandated bonus in installments, and manage taxes on fringe benefits like health insurance or company cars.

Termination Process & Severance Pay in Malta

Under Maltese law, employers can only terminate employment for valid reasons, such as misconduct or redundancy.

The employee must be provided reasonable notice unless the termination is for gross misconduct. Employees can appeal unjustified terminations through Malta’s Industrial Tribunal.

Notice periods are based on how long an employee worked for their employer.

  • 1 month to 6 months: 1 week
  • 6 months to 2 years: 2 weeks
  • 2 to 4 years: 4 weeks
  • 4 to 7 years: 8 weeks
  • Over 7 years: Additional 1 week per year, up to 12 weeks

Maltese law doesn’t require severance pay. However, collective agreements might include provisions for redundancy pay in cases of collective redundancies. This ensures financial security for employees facing job loss due to large-scale company changes.

If an employer terminates an indefinite contract, the company must pay the employee half of the wages they would have received while working during the notice period. The employee also has the option to continue working until the end of the notice period.

Paid Leave Laws in Malta

Vacation and Holiday

Full-time employees working 40 hours a week for less than five years are entitled to 24 days of paid vacation leave per year. This is prorated for part-time employees. Employees with over five years of service with the same employer can receive up to 28 days of paid leave.

Employees are also entitled to 14 paid public holidays each year.

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Sick Leave

Full-time employees receive up to two weeks of annual paid sick leave. They may be entitled to additional sick leave beyond that, which Social Security would pay for.

Maternity Leave

New mothers are entitled to 18 weeks of maternity leave, which can begin four weeks before the due date.

The employee must take at least six weeks of leave after childbirth. Employers pay the full salary for the first 14 weeks, with Social Security paying the remainder.

Paternity Leave

New fathers are entitled to 10 working days of paid paternity leave, which must be taken immediately after the birth or adoption of a child.

Parental Leave

Parents in Malta are entitled to up to four months of unpaid parental leave per year until their child reaches eight years old.

Why Digital Nomads Love Malta

Digital nomads are drawn to Malta for its mild weather, low cost of living, vibrant work culture, and high quality of life.

The island offers reliable high-speed internet with a nationwide 5G network and numerous public Wi-Fi spots. Malta’s café culture and coworking spaces provide productive work environments for self-employed digital nomads to connect with like-minded expats.

In 2021, Malta introduced a digital nomad visa, the Nomad Residence Permit (NRP), which allows non-EU remote workers to live in Malta for up to one year. This visa and Malta’s skilled workforce make it an appealing spot for businesses seeking to add to their remote teams.

Hire in Malta with Remofirst

Hiring international remote workers can be challenging due to varying tax laws, compliance requirements, and payroll regulations, creating significant administrative burdens and legal risks for businesses.

Remofirst, as an Employer of Record (EOR), manages the employment logistics of hiring global employees — including contract management, payroll administration, and legal compliance — in over 180 countries, including Malta.

Book a demo today to see how Remofirst can simplify your hiring process in Malta and beyond.

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