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September 25 2025 07:16:58 by PCLMedia
 
As of October 1, 2025, a new law will mandate that wages for *certain* Third Country Nationals (TCNs) working in Malta must be paid via direct bank transfer, marking a significant shift in how foreign workers are compensated. However, the measure will only apply to newly arriving TCNs or those changing jobs after that date — leaving many existing workers outside the scope of this reform, at least for now.

A Move to Combat Abuse — But Only for Some

The law, passed in a swift parliamentary session on Wednesday, was introduced by the Maltese government as part of ongoing efforts to combat labor exploitation, particularly in sectors where TCNs are heavily employed.

Employment Minister Byron Camilleri stated that the reform is designed to eliminate wage-related abuses, ensure transparency, and uphold the dignity of all workers — Maltese or otherwise. “We cannot verify payment details when wages are paid in cash,” he explained, pointing out that electronic payments will enable authorities to confirm that workers are receiving what they’re legally owed and that taxes are being correctly reported.

Parliamentary Secretary Andy Ellul echoed this sentiment, framing the change as a step towards fairer labor practices.

Opposition Criticizes Partial Implementation

Despite agreement on the principle of wage transparency and anti-abuse measures, Opposition MPs from the Nationalist Party (PN) voted against the bill — not because they oppose the idea, but due to its limited application.

PN MP Ivan Castillo voiced strong concerns that the bill essentially creates “two classes” of TCNs: those protected by the new regulation, and those left behind. “If we’re serious about stopping abuse, we can’t do it selectively,” Castillo argued, calling the government's phased approach illogical and unfair.

He proposed amendments to make the law applicable to all TCNs currently employed in Malta — either immediately or by delaying the rollout until January 2026, to give businesses and workers time to adapt. Both proposals were rejected by government MPs.

Minister Camilleri defended the phased approach, arguing that a blanket application would create an “immediate bureaucratic burden” and overwhelm employers and workers, many of whom would have to scramble to open bank accounts at accredited institutions.

“We want to fight abuse, but we don’t want to halt the system,” he said.

Living in Malta as a TCN: Opportunities Shadowed by Obstacles

Malta continues to rely heavily on TCNs, who fill critical roles in sectors such as hospitality, construction, healthcare, and delivery services. But while the country’s economic needs have opened doors for foreign workers, many TCNs face persistent challenges:

* Unstable Employment Contracts: Many workers are on short-term or project-based contracts, making it difficult to plan for the future or secure stable housing.

* Delayed or Underpaid Wages: Wage theft remains a common issue, especially for workers paid in cash, where tracking payments becomes nearly impossible.

* Barriers to Banking: Many TCNs struggle to open bank accounts due to documentation requirements or high minimum balance fees — one reason why some are still paid in cash.

* Lack of Legal Protection: Despite legal reforms, many workers are unaware of their rights or hesitant to report abuse for fear of losing their job or residency status.

* Housing and Cost of Living: Soaring rents and a shortage of affordable accommodation add another layer of pressure, often leading TCNs to live in overcrowded or substandard housing.

A Step Forward, But Not a Leap

While the new law is a positive step towards improving labor conditions and enforcing transparency, critics argue that its selective rollout weakens its impact. By leaving a large segment of the current TCN workforce excluded from the measure — at least initially — the government risks perpetuating existing inequalities, rather than resolving them.

The discussion around this bill underscores a broader truth: true reform in labor rights for TCNs in Malta requires more than piecemeal changes. It demands systemic overhaul, inclusive policies, and a deep commitment to ensuring that every worker — regardless of origin — is treated fairly, paid transparently, and protected by law.
 

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