Maltas Minimum Wage Growth Among EUs Lowest

February 11 2025 08:13:16 by PCLMedia

The annual growth rate in Malta’s minimum wage has been among the lowest in the EU over the past decade, according to recent Eurostat data. Despite slight improvements when adjusted for purchasing power, the island nation still lags behind most EU member states regarding wage increases.

Slow Growth Over the Last Decade
Between January 2015 and 2025, Malta’s minimum wage grew at an average annual rate of 2.9%, making it the second-lowest growth rate in the EU, only behind France, which saw a growth rate of 2.1%. Meanwhile, several Eastern European countries experienced substantial wage growth, with Romania (+14.1%), Lithuania (+13.2%), Bulgaria (+11.6%), and Poland (+10.3%) leading the pack.

Comparison Across the EU
Malta remains among 10 EU countries with a minimum wage below €1,000 per month, with wages across the bloc ranging from €551 in Bulgaria to €2,638 in Luxembourg. Only six countries boast minimum wages above €1,500 per month, including Luxembourg, Ireland, the Netherlands, Germany, Belgium, and France. Meanwhile, six additional countries offer a minimum wage between €1,000 and €1,500.

When adjusted for price differences, Malta’s minimum wage increases to slightly above €1,000, indicating better purchasing power than the raw figures suggest. The Eurostat report noted that overall disparities in minimum wages across the EU were "considerably smaller" when considering cost-of-living adjustments.

However, when comparing minimum wages to the median wage levels, Malta does not fare as well. In 2018—the latest year for which this data was available—Malta was among six EU countries where the minimum wage was less than half of the median wage. This signals income inequality and wage stagnation compared to other European nations.

Wage Structure and Regional Disparities in Malta and Gozo
Malta's minimum wage is measured on a weekly basis. In 2024, the minimum wage was €213.54 per week, up from €192.73 in 2023 and €168.01 in 2016. These increases, while gradual, have not kept pace with rising living costs, especially in high-rent areas such as Sliema, St. Julian's, and Valletta.

In Gozo, the cost of living is generally lower, particularly in terms of rent and groceries. However, job opportunities in Gozo are more limited compared to Malta, and average salaries in Gozo tend to be lower. Many Gozitans commute to Malta for work due to better-paying opportunities, which adds additional transportation costs and commuting time to their financial burden.

Future Prospects: Government and Social Partner Agreements
Despite slow growth, Malta's minimum wage is set to increase more consistently over the next few years. In October 2023, the government signed an agreement with social partners to incrementally raise the minimum wage over a four-year period.

At the time of the agreement, there were just over 2,000 registered minimum wage earners in Malta. However, the increase was projected to impact approximately 6,000 workers, including 4,000 individuals who qualify for in-work benefits.

While the agreement marks progress, critics argue that Malta's minimum wage still does not reflect the true cost of living, especially considering rising housing and utility costs. Workers' unions continue to push for more substantial increases and stronger enforcement of fair pay policies across different sectors.

Summary
Although Malta's minimum wage has seen some increases, its growth remains among the slowest in the EU. While adjustments for purchasing power paint a slightly better picture, Malta still struggles with wage stagnation compared to the rapid increases seen in Eastern Europe. With new agreements in place, the coming years will determine whether these measures can effectively improve living standards for minimum wage earners in Malta and Gozo.