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February 21 2025 09:20:07 by PCLMedia
 
Malta’s minimum wage increased by 3.9% in 2025, rising from €925 to €961 per month. However, an analysis by the European Foundation for the Improvement of Living and Working Conditions (Eurofound) indicates that Malta is falling behind in the rankings compared to other EU nations.

Malta Slips Behind Lithuania and Croatia

Having already been surpassed by Poland in 2024, Malta has now also been overtaken by Lithuania and Croatia.

According to Eurofound data, Croatia’s minimum wage saw a significant 15.5% increase, climbing from €840 in 2024 to €970 in 2025, surpassing Malta. Lithuania’s minimum wage rose from €924 to €1,038, also moving ahead of Malta in the rankings. Meanwhile, Poland, which had already outpaced Malta in 2024, raised its minimum wage by 11.7%, from €978 to €1,091 in 2025, further widening the gap.

However, these figures do not take into account additional government-provided benefits aimed at enhancing minimum incomes. In Malta, these include substantial in-work benefits and an annual Cost of Living Adjustment (COLA) increase, which can amount to as much as €1,500 per year.

Minimum Wage Trends Across the EU

Romania recorded the highest percentage increase among EU member states, with a 22.8% rise, bringing its minimum wage from €663 to €814. Lithuania also saw a notable double-digit increase of 12.3%, raising its minimum wage to €1,038.

Countries with traditionally higher wages, such as Luxembourg, the Netherlands, and Ireland, registered more modest increases. Luxembourg’s minimum wage rose by 2.6% to €2,638, maintaining its position as the highest in the EU. The Netherlands saw a 6.0% increase to €2,193, while Ireland’s minimum wage rose by 6.3% to €2,282.

Malta’s Standing in the EU

Despite the wage increase, Malta remains among the lower-ranked EU countries for minimum wages. It now sits in close proximity to Greece (€968) and Portugal (€1,015), while Cyprus has maintained a stable rate of €1,000, unchanged from the previous year. Meanwhile, Slovenia (€1,384) and Spain (€1,381) continue to hold a significant lead over Malta.

Overall, the EU trend shows widespread increases in minimum wages, but the pace of change varies. While some countries, like Poland and Croatia, have made substantial gains, others, such as Germany, France, and Belgium, have recorded more moderate increases ranging from 2% to 4.4%.

The Role of Inflation in Wage Adjustments

Inflation remains a key factor in determining minimum wage adjustments. Several EU countries, such as Estonia and Czechia, implemented increases of 8% or more to keep up with inflation. In contrast, Malta’s 3.9% wage increase aligns with its relatively low inflation rate of 1.8%—one of the lowest in the EU, second only to Luxembourg.

A significant reason for Malta’s lower inflation rate is the government’s decision to subsidize energy costs, a major driver of inflation in many other countries. This policy has helped maintain price stability, influencing the more measured approach to wage increases.

Summary

While Malta’s minimum wage has increased, it has not kept pace with other EU nations, leading to a drop in the rankings. As countries like Poland, Croatia, and Lithuania continue to implement substantial wage hikes, Malta’s position in the EU wage landscape remains under pressure. The country’s approach to maintaining economic stability through inflation control and social benefits plays a crucial role in shaping future wage policies.
 

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