Regulations for working in Malta

Overview

Malta combines Mediterranean quality of life with a modern economic and legal environment – making it increasingly attractive to international professionals, mobile teams, and digital nomads. However, anyone working in Malta – whether on a short-term business trip, a formal secondment, or a flexible workation – must comply with certain legal requirements. These include notification obligations to Maltese authorities, regulations on working hours, wage requirements, as well as social security and tax obligations. Despite being an EU member state, Malta enforces some distinct national provisions that companies and employees should consider when planning assignments. This page provides a compact overview of the most important regulations for working in Malta – legally compliant, up-to-date, and practical.

EU Posted Workers Directive

What are the requirements?

Foreign employers must inform the Department of Industrial and Employment Relations (DIER) in Malta of their intention to post workers there. This notification must be made prior to the posting. A form titled “Notification of a Posted Worker to Malta” must be submitted. Supporting documents must be attached to the notification, including a copy of the posted worker’s passport (biometric page), employment contract, secondment agreement, and, if applicable, the work permit.

Required Documents

The host company in Malta must retain a copy of the notification form and supporting documents at the workplace. While there is no legal requirement to store documents regarding working and employment conditions, documents that may be relevant for tax-deductible expense claims in Malta (e.g., secondment agreements) must be retained for 10 years.

Legal Representative in Malta

Non-compliance with posting regulations may result in fines ranging from €117 to €1,165. Violations of wage requirements may be penalized with fines ranging from €232.94 to €2,329.37. The foreign employer may also be required to compensate the posted worker if appropriate remuneration was not paid.

Penalties for violation

Non-compliance can result in fines between HUF 5,000 and HUF 9,000 (approx. €1,090 to €1,960). Specific penalties include:

Failure to submit form T104: up to HUF 500,000 (approx. €1,300)
Non-compliance with employment conditions for posted workers: between HUF 30,000 (approx. €70) and HUF 10,000,000 (approx. €25,000)

Other forms of non-compliance may be penalized, including failure to present documents upon request by authorities.

Labor Law

Minimum Wage

As of January 1, 2025, the minimum wage in Malta is €5.54 per hour. Collective agreements may be negotiated between employers and one or more employee organizations. These agreements may stipulate pay scales and annual increments above the national minimum wage. Wage regulation orders also govern specific employment conditions in particular sectors.

Working Time

Generally, average working time – including overtime – must not exceed 48 hours per 7-day period, calculated over a 17-week reference period. However, it is possible to exceed the average if the posted worker agrees in writing. Exceptions apply to certain types of employment relationships as defined in the relevant wage regulation orders.

Important Hints

Non-compliance with the applicable labor law may lead to financial obligations, fines, or liabilities under local termination and working time laws.

Social Security

When a worker is posted to Malta from another EU country, EU Regulation 883/2004 on the coordination of social security systems applies:

A1 certificate present: The worker remains covered by their home country's social security system.
No A1 certificate: Maltese social security rules apply, and the foreign employer must comply as if it were a Maltese employer.

Important Hints

Violations may result in extensive administrative obligations, back payment of contributions (with interest), increased audits, significant penalties, and potential reputational damage.

Income Tax

In general, income earned by posted workers in Malta is subject to taxation from the first day of work – unless Malta’s right to tax is limited by a double taxation agreement. Once income tax liability arises, the foreign employer must withhold taxes and/or social security contributions and remit them to the Commissioner for Revenue (CfR) within the legal deadlines.

Posted workers may be required to file an annual tax return in Malta. The CfR may classify posted workers as either “filers” or “non-filers”:

Filer: Must submit an annual tax return by June 30 of the year following the tax year and settle any resulting tax liability.
Non-filter:
Not required to submit a tax return within the statutory deadline, as the CfR issues a tax statement based on income reported via withholding mechanisms.

Important Hints

The consequences of non-compliance vary but often result in an immediate obligation to file a tax return in the host country, leading to extensive consequences for both employees and employers.

Immigration & Visas

International activities require exact compliance with international visa and entry requirements. The traveller, the type of activity, the purpose of stay and the duration are decisive for this, whether a business visa, a work visa or other special permits are required.

Important Hints

The consequences in case of infringement may include entry bans and associated loss of revenue, sanctions, fines and reputation damage.

Permanent Establishment

Employees working abroad can establish a permanent establishment through their activities in the target country and thus trigger a chain of financial and administrative consequences for companies.

Important Hints

The consequences of a violation may vary depending on the situation, but each establishment entails a significant administrative burden. In addition to registration, profit allocation and filing of the corporate income tax return, income tax obligations usually also arise.

Wichtige Hinweise

Important Hints