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Malta Labor Laws - Employment and Annual Basic Salary 2024
Last changed: July 24 2024 09:35
In its 2024 Regional Statistics report released on Tuesday,24., the National Statistics Office (NSO) revealed that the average annual basic salary for employees in 2022 was €20,989.
According to the report, male employees had an average salary of €22,096, while female employees earned an average of €19,605. This marks an increase from 2021, when the average annual salary was €19,823.
The NSO also highlighted that in 2022, 85,797 people living in private households were considered at risk of poverty. The poverty risk rate was 16.8% for Malta and 15.1% for Gozo and Comino.
Malta’s total population in 2022 was 542,051, with 501,860 people living in Malta and 40,191 in the Gozo and Comino regions. The age group 30 to 39 accounted for the largest share of the population in both regions, with 18.9% in Malta and 15.1% in Gozo and Comino. In the Malta region, 35,553 people lived in the Northern Harbour and 20,055 in the Northern district.
Between 2017 and 2022, Malta's population grew consistently each year, increasing by a total of 61,596 residents. Gozo and Comino also saw a population increase of 5,618 residents, reflecting a 16.2% growth since 2017.
In 2022, the country’s foreign population reached 137,376, with 32.9% aged between 30 and 39 years.
For both 2021 and 2022, Malta experienced a natural increase in population, while Gozo and Comino saw a natural decrease. In 2022, the data indicated there were about four working-age adults for every person aged 65 or older.
The average disposable household income was highest in the South Eastern district at €42,855 and lowest in the Northern Harbour district at €29,852.
In 2022, 245,059 residents of Malta were employed full-time, an increase of 8.6% compared to 2021. In Gozo and Comino, 17,702 residents were working full-time, marking a 5.7% rise from the previous year.
According to the NSO, 81.6% of Malta’s workforce was employed in the private sector, compared to 66% in Gozo and Comino.
Malta's labor laws are designed to protect both employers and employees, ensuring fair and equitable working conditions. Here’s an overview of key aspects of Malta's labor laws:
1. Employment Contracts
- Written Contract: Employers are required to provide a written contract or a written statement of employment within eight working days from the commencement of employment. This document should outline the terms of employment, including job title, wage, working hours, and conditions.
- Types of Contracts: Employment can be full-time, part-time, fixed-term, or indefinite.
2. Wages and Salaries
- Minimum Wage: The national minimum wage in Malta is determined annually. As of 2024, the minimum wage is approximately €192.73 per week for workers aged 18 and over.
- Payment Frequency: Wages must be paid at regular intervals, typically monthly or fortnightly, as agreed in the employment contract.
3. Working Hours and Overtime
- Standard Working Hours: The maximum standard working week is 40 hours.
- Overtime: Any work beyond 40 hours per week is considered overtime and must be compensated at a higher rate, typically 1.5 times the normal rate, unless otherwise specified in a collective agreement.
4. Leave Entitlements
- Annual Leave: Employees are entitled to a minimum of four weeks (20 days) of paid annual leave per year, based on a 40-hour workweek.
- Public Holidays: Employees are entitled to paid leave on public holidays. If a public holiday falls on a day when the employee would normally work, it is added to the annual leave entitlement.
- Sick Leave: Employees are entitled to paid sick leave, typically up to two weeks per year, depending on the collective agreement or contract terms.
- Maternity Leave: Female employees are entitled to 18 weeks of maternity leave, with the first 14 weeks paid by the employer, and the remaining four weeks can be unpaid.
- Paternity Leave: Male employees are entitled to one day of paid paternity leave.
- Parental Leave: Both parents are entitled to four months of unpaid parental leave for each child, which can be taken until the child is eight years old.
5. Termination of Employment
- Notice Periods: Employers and employees are required to provide notice of termination, the length of which depends on the duration of employment:
- Up to 1 month: 1 week notice
- 1 to 6 months: 2 weeks notice
- 6 months to 2 years: 4 weeks notice
- 2 to 4 years: 8 weeks notice
- More than 4 years: 8 weeks notice plus an additional 1 week for every subsequent year up to a maximum of 12 weeks. - Unfair Dismissal: Employees who believe they have been unfairly dismissed can file a complaint with the Industrial Tribunal.
6. Discrimination and Equal Treatment
- Equal Opportunities: The law prohibits discrimination based on gender, race, disability, sexual orientation, religion, or age.
- Equal Pay for Equal Work: Employers must provide equal pay for equal work, regardless of gender or other discriminatory factors.
7. Health and Safety
- Occupational Health and Safety Authority (OHSA): Employers are required to provide a safe working environment and adhere to health and safety regulations. This includes conducting risk assessments and providing necessary training and protective equipment.
8. Collective Bargaining
- Unions: Employees have the right to join trade unions, and collective agreements can be negotiated between employers and unions regarding terms and conditions of employment.
9. Data Protection and Privacy
- GDPR Compliance: Employers must comply with data protection regulations under the General Data Protection Regulation (GDPR), ensuring that employee data is collected and processed lawfully.
Enforcement and Compliance
The Department of Industrial and Employment Relations (DIER) is responsible for enforcing labor laws in Malta. Employers and employees can seek guidance and report violations to the DIER.
Understanding these labor laws is essential for both employers and employees to ensure compliance and foster a fair and productive working environment in Malta.
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