2022 Payroll in Malta

Understand how your payroll is set to change in 2022 through updated social security contributions, tax rates, vacation & sick leave, benefits and more...

Malta Payroll Adjustments & Employee Benefits for 2022 – FAQ’s

The wages of whole-time employees shall be increased by €1.75 per week.

L.N. 463 of 2021 addresses the increase in the COLA.

The hourly rate of part-time employees shall be increased by the same amount as the increase in the hourly rate of a comparable whole-time employee, calculated after including the weekly increases, or in cases where there is no comparable category of whole-time employees at the workplace, by the hourly rate of a comparable whole-time employee in an applicable Wages Council Wage Regulation Order, or in the absence of an applicable Wages Council Wage Regulation Order, by one-fortieth (1/40) of the rate of increases.

L.N. 462 of 2021 addresses the National Minimum Wage related to a normal working week shall be increased as follows, with effect from 1st January 2022.

  • Aged 18 years and over – € 182.83 per week
  • Aged 17 years – € 176.05 per week
  • Aged below 17 years – € 173.21 per week

The national minimum wage of part-time employees shall be calculated pro-rata at the same hourly rate of a comparable whole-time employee as applicable in accordance with the minimum wage of the relevant Wages Council Wage Regulation Order, or in cases where a Wages Council Wage Regulation Order is not applicable, at an hourly rate not below the National Standard Minimum Wage applicable, as determined in accordance with the preceding paragraph and divided by forty (40). Wages Council Wage Regulation Orders. Cap. 452.

Where any Wages Council Wage Regulation Order applies to any employee, the wages payable to such employee in respect of the year 2022 shall not be less than those laid down by such Wages Council Wage Regulation Order, applicable for the year 2021 adjusted for cost of living by any increases of wages declared to be generally applicable to all whole-time employees in terms of article 8 of the Employment and Industrial Relations Act, or by any wage increases for cost of living laid down by any National Standard Order applicable in respect of the year 2022.

Employees who are on the minimum wage and have been in employment with the same employer for more than a year will have their wages adjusted, upon the completion of one or two years in employment, in accordance with the National Agreement on the Minimum Wage.

Number of Public Holidays that Fall on a Weekday: 10
Number of Public Holidays that Fall on a Weekend: 4
Total Public Holidays in Malta for 2022: 14

  1. Saturday 1st January – New Year’s Day
  2. Thursday 10th February – Feast of St Paul’s Shipwreck
  3. Saturday 19th March – Feast of St Joseph
  4. Thursday 31st March – Freedom Day
  5. Friday 15th April – Good Friday
  6. Sunday 1st May – Workers’ Day
  7. Tuesday 7th June – Sette Giugno
  8. Wednesday 29th June – Feast of St Peter and St Paul
  9. Monday 15th August – Feast of the Assumption
  10. Thursday 8th September – Victory Day
  11. Wednesday 21st September – Independence Day
  12. Thursday 8th December – The Immaculate Conception
  13. Tuesday 13th December – Republic Day
  14. Sunday 25th December – Christmas Day

Whenever a Public Holiday falls on a weekend this is now added to the optional vacation leave.

There are 4 such holidays during 2022 namely:

  1. Saturday 1st January – New Year’s Day
  2. Saturday 19th March – Feast of St Joseph
  3. Sunday 1st May – Workers’ Day
  4. Sunday 25th December – Christmas Day

With effect as from 1st January 2022, an employee working 40 hours per week is entitled to 224 hours of paid annual leave.

This is made up of: 192 hours basic leave entitlement + 32 hours in lieu of the 4 Public Holidays that fall on weekends.

This is calculated on the basis of a 40-hour working week, and an 8-hour working day. If the average normal hours (excluding overtime) calculated over a period of 17 weeks is below or exceeds 40 hours per week, the vacation leave entitlement in hours should be adjusted accordingly, as provided for in the Organisation of Working Time Regulations.

When an employee is in employment for less than 12 months, s/he shall be entitled to a proportionate amount of annual leave.

In 2022, as it has been from the 1st of January 2019, unless otherwise agreed to in any applicable collective agreement, the employer may only utilize up to the equivalent in hours of twelve working days from the annual leave entitlement, to be calculated as provided for in the Organisation of Working Time Regulations, for the purposes of any type of shutdown, including a temporary closure of the whole or part of the premises by the employer, be it for bridge holidays or any other short periods of shutdown.

Single Income Tax Rates in Malta

The standard income tax rates for Malta in 2022 have not changed from the previous year, however tax on part-time income and overtime have been updated in the sections below.

Chargeable Income (€)
From To Rate Subtract (€)
0 9,100 0% 0
9,101 14,500 15% 1,365
14,501 19,500 25% 2,815
19,501 60,000 25% 2,725
60,001 and over 35% 8,725

 

Married Income Tax Rates in Malta

Chargeable Income (€)
From To Rate Subtract (€)
0 12,700 0% 0
12,701 21,200 15% 1,905
21,201 28,700 25% 4,025
28,701 60,000 25% 3,905
60,001 and over 35% 9,905

 

Parent Income Tax Rates in Malta

Chargeable Income (€)
From To Rate Subtract (€)
0 10,500 0% 0
10,501 15,800 15% 1,575
15,801 21,200 25% 3,155
21,201 60,000 25% 3,050
60,001 and over 35% 9,050

Source: Office of the Commissioner for Revenue (CfR)

In 2022, individuals working in a non-managerial position and earning an annual base wage of not more than €20,000 will be taxed at the rate of 15% on their first €10,000 of overtime income.

The tax rate applicable to income from part-time work shall be taxed at the rate of 10% up to a maximum of €10,000 per annum. If the part-time income exceeds these amounts you will have to declare the excess in your tax return and pay tax on the difference at the normal rates.

The following table includes the calculations for Social Security Contributions for 2022 for all categories of employees. These rates have been adjusted to reflect the revised calculations as part of the pension reform.

Category Type of Employed Persons Weekly Rate of Contribution Payable by
Employed Person
Weekly Rate of Contribution Payable by the Employer
A Persons under 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €182.83 €6.62 €6.62
B Persons over 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €182.83 €18.28, or if the insured person elects, 10% calculated to the nearest cent of such person’s basic weekly wage or the weekly equivalent of such person’s basic monthly salary (see note 1 below) €18.28
C (C1) Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €182.84 but does not exceed €378.98


(C2) Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €182.84 but does not exceed €499.73

10% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary 10% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary
D (D1) Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €378.99


(D2) Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €499.74

€37.90


€49.97

€37.90


€49.97

E Persons under 18 years of age who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration 10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of € 4.38 10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of € 4.38
F Persons over 18 years of age who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration 10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of € 7.94 10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of € 7.94
Category A
Type of Employed Persons Persons under 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €182.83
Weekly Employee Rate €6.62
Weekly Employer Rate €6.62
Category B
Type of Employed Persons Persons over 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €182.83
Weekly Employee Rate €18.28, or if the insured person elects, 10% calculated to the nearest cent of such person’s basic weekly wage or the weekly equivalent of such person’s basic monthly salary (see note 1 below)
Weekly Employer Rate €18.28
Category C
Type of Employed Persons (C1) Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €182.84 but does not exceed €378.98


(C2) Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €182.84 but does not exceed €499.73

Weekly Employee Rate 10% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary
Weekly Employer Rate 10% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary
Category D1 – born on 31 December 1961 or before
Type of Employed Persons Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €378.99
Weekly Employee Rate €37.90
Weekly Employer Rate €37.90
Category D2 – born on 1 January 1962 or after
Type of Employed Persons Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €499.74
Weekly Employee Rate €49.97
Weekly Employer Rate €49.97
Category E
Type of Employed Persons Persons under 18 years of age who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration
Weekly Employee Rate 10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of € 4.38
Weekly Employer Rate 10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of € 4.38
Category F
Type of Employed Persons Persons over 18 years of age who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration
Weekly Employee Rate 10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of € 7.94
Weekly Employer Rate 10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of € 7.94

Source: SSC Class 1 Rates – Commissioner for Revenue (CfR)

The 2022 rates for Class 2 Social Security Contributions are based on the annual net profit or income for the year preceding the contribution payment year.

Class Two Contributions are to be paid by all individuals who derive income of more than €910 from economic activity and who are not employed.

Self Employed persons are persons who receive income from rents, investments, capital gains or any other income.

Category Type of Employed Persons Weekly Rate of Contribution Payable by Employed Person
SP Persons whose annual net earnings (excluding Maternity Benefit, Children’s Allowance and any ex-gratia Benefit payable under article 88 of this Act) during the calendar year immediately preceding the contribution year in which the contribution is being paid: Persons who exceed €1,006 but does not exceed €9,387 (this category applies only to single persons who are not self-occupied) €27.08
SA is less than €10.848 € 31.29 or 15% of the annual net earnings if the person is a part-time self-occupied woman or a full-time student who has not reached the age of 24 who is a part-time self-occupied person, or a pensioner who is a part-time self-occupied person whose annual net earnings do not exceed € 10,848 (see NOTE 1 below)
or
€20.86 if the person is a full-time farmer whose annual net earnings do not exceed €10,848 (see NOTE 2 below)
SB Persons born on 31 December 1961 or before whose annual net income exceeds €10,849 but does not exceed €19,706.90


Persons born on 1 January 1962 or after whose annual net income exceeds €10,849 but does not exceed €25,986

The weekly equivalent of 15% of their annual income, calculated to the nearest cent.
or
The weekly equivalent of 10% if a full-time farmer
SC Persons born on 31 December 1961 or before whose annual net income exceeds €19,706.91


Persons born on 1 January 1962 or after whose annual net income exceeds €25,987 (see NOTE 1 below)

€56.85
or
€37.90 if a full-time farmer


€74.96
or
€49.97 if a full-time farmer

Category SP
Type of Employed Persons Persons whose annual net earnings (excluding Maternity Benefit, Children’s Allowance and any ex-gratia Benefit payable under article 88 of this Act) during the calendar year immediately preceding the contribution year in which the contribution is being paid: Persons who exceed €1,006 but does not exceed €9,387 (this category applies only to single persons who are not self-occupied)
Weekly Employee Rate €27.08
Category SA
Type of Employed Persons is less than €10,848
Weekly Employee Rate € 31.29 or 15% of the annual net earnings if the person is a part-time self-occupied woman or a full-time student who has not reached the age of 24 who is a part-time self-occupied person, or a pensioner who is a part-time self-occupied person whose annual net earnings do not exceed € 10,848 (see NOTE 1 below)
or
€20.86 if the person is a full-time farmer whose annual net earnings do not exceed €10,848 (see NOTE 2 below)
Category SB
Type of Employed Persons (SB1) Persons born on 31 December 1961 or before whose annual net income exceeds €10,849 but does not exceed €19,706.90


(SB2) Persons born on 1 January 1962 or after whose annual net income exceeds €10,849 but does not exceed €25,986

Weekly Employee Rate The weekly equivalent of 15% of their annual income, calculated to the nearest cent.
or
The weekly equivalent of 10% if a full-time farmer
Category SC1 – born on 31 December 1961 or before
Type of Employed Persons Persons born on 31 December 1961 or before whose annual net income exceeds €19,706.91
Weekly Employee Rate €56.85
or
€37.90 if a full-time farmer
Category SC2 – born on 1 January 1962 or after
Type of Employed Persons Persons born on 1 January 1962 or after whose annual net income exceeds €25,987 (see NOTE 1 below)
Weekly Employee Rate €74.96
or
€49.97 if a full-time farmer

NOTE 1: If the insured person elects to pay a contribution that is less than €31.29, such contribution may, if the person qualifies for a contributory benefit or a contributory pension, result in the payment of a reduced contributory benefit or contributory pension.

NOTE 2: This reduced rate is applicable for full-time farmers as identified by the Department of Agriculture.

Source: SSC Class 2 Rates – Commissioner for Revenue (CfR)

The 2022 rates for Class 2 Social Security Contributions are based on the annual net profit or income for the year preceding the contribution payment year.

Class Two Contributions are to be paid by all individuals who derive income of more than €910 from economic activity and who are not employed.

Self Occupied Persons – persons who earn income from Trade, Business, Profession, Vocation or any other economic activity that exceeds €910 per annum.

Category Type of Employed Persons Weekly Rate of Contribution Payable by Employed Person
SP N/A N/A
SA is less than €10.848 € 31.29 or 15% of the annual net earnings if the person is a part-time self-occupied woman or a full-time student who has not reached the age of 24 who is a part-time self-occupied person, or a pensioner who is a part-time self-occupied person whose annual net earnings do not exceed € 10,848 (see NOTE 1 below)
or
€20.86 if the person is a full-time farmer whose annual net earnings do not exceed €10,848 (see NOTE 2 below)
SB Persons born on 31 December 1961 or before whose annual net income exceeds €10,849 but does not exceed €19,706.90


Persons born on 1 January 1962 or after whose annual net income exceeds €10,849 but does not exceed €25,986

The weekly equivalent of 15% of their annual income, calculated to the nearest cent.
or
The weekly equivalent of 10% if a full-time farmer
SC Persons born on 31 December 1961 or before whose annual net income exceeds €19,706.91


Persons born on 1 January 1962 or after whose annual net income exceeds €25,987 (see NOTE 1 below)

€56.85
or
€37.90 if a full-time farmer


€74.96
or
€49.97 if a full-time farmer

Category SA
Type of Employed Persons is less than €10,848
Weekly Employee Rate € 31.29 or 15% of the annual net earnings if the person is a part-time self-occupied woman or a full-time student who has not reached the age of 24 who is a part-time self-occupied person, or a pensioner who is a part-time self-occupied person whose annual net earnings do not exceed € 10,848 (see NOTE 1 below)
or
€20.86 if the person is a full-time farmer whose annual net earnings do not exceed €10,848 (see NOTE 2 below)
Category SB
Type of Employed Persons (SB1) Persons born on 31 December 1961 or before whose annual net income exceeds €10,849 but does not exceed €19,706.90


(SB2) Persons born on 1 January 1962 or after whose annual net income exceeds €10,849 but does not exceed €25,986

Weekly Employee Rate The weekly equivalent of 15% of their annual income, calculated to the nearest cent.
or
The weekly equivalent of 10% if a full-time farmer
Category SC1 – born on 31 December 1961 or before
Type of Employed Persons Persons born on 31 December 1961 or before whose annual net income exceeds €19,706.91
Weekly Employee Rate €56.85
or
€37.90 if a full-time farmer
Category SC2 – born on 1 January 1962 or after
Type of Employed Persons Persons born on 1 January 1962 or after whose annual net income exceeds €25,987 (see NOTE 1 below)
Weekly Employee Rate €74.96
or
€49.97 if a full-time farmer

NOTE 1: If the insured person elects to pay a contribution that is less than €31.29, such contribution may, if the person qualifies for a contributory benefit or a contributory pension, result in the payment of a reduced contributory benefit or contributory pension.

NOTE 2: This reduced rate is applicable for full-time farmers as identified by the Department of Agriculture.

Source: SSC Class 2 Rates – Commissioner for Revenue (CfR)

Category Type of Employed Persons Weekly Rate of Contribution payable by the Employer
A Persons under age 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €182.83 €0.20
B Persons over 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €182.83 €0.55
C (C1) Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €182.84 but does not exceed €378.98


(C2) Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €182.84 but does not exceed €499.73

0.3% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary
D (D1) Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €378.99


(D2) Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €499.74

€1.50
E Persons under 18 years of age who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration 0.3% calculated to the nearest cent of their basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of €0.13
F Persons over 18 years of age who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration 0.3% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of €0.24

The daily rates of benefit payable as from 1st January 2022:-

Daily Rate of Benefit
Type of Benefit Single Parent or
Married Person with a Spouse not in full-time employment
Any other Person
Sickness Benefit € 21.85 € 14.15
Injury Benefit € 32.78 € 24.66
Unemployment Benefit* € 13.25 € 8.66
Special Unemployment* Benefit € 22.25 € 14.68

* Unemployment Benefit may be awarded to a person who has paid Class 1 or Class 2 Social Security Contributions and is registering with Jobsplus under Part I of the Unemployment Register. It is paid on a 6 day week basis and covers payment from Monday to Saturday. A beneficiary is entitled to a maximum of 156 days of Unemployment Benefit. 

“Pension age” means sixty-five years of age.

Provided that;

    1. saving the provisions of paragraph (ii) hereof, in the case of a person born on or before the 31st December 1951, pension age shall be sixty-one years;
    2. in the case of a person born during the calendar years 1952 to 1955, pension age shall be sixty-two years;
    3. in the case of a person born during the calendar years 1956 to 1958, pension age shall be sixty-three years;
    4. in the case of a person born during the calendar years 1959 to 1961, pension age shall be sixty-four years.
  1. in the case of a woman born on or before the 31st December 1951, pension age shall be sixty years.

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