The government unveiled a raft of improved or totally new social measures, with increases in pensions, tax refunds, new equity sharing schemes, and disability and invalidity pensions increases for the year 2020, all featuring in Finance Minister Edward Scicluna’s speech.

The wages of whole-time employees shall be increased by €3.49 per week.

L.N. 350 of 2019 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. 349 of 2019 addresses the National Minimum Wage related to a normal working week shall be increased as follows, with effect from 1st January 2020.

  • Aged 18 years and over – € 179.33 per week
  • Aged 17 years – € 172.55 per week
  • Aged below 17 years – € 169.71 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 2020 shall not be less than those laid down by such Wages Council Wage Regulation Order, applicable for the year 2019 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 2020.

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: 11
Number of Public Holidays that Fall on a Weekend: 3
Total Public Holidays in Malta for 2020: 14

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

Whenever a Public Holiday falls on a weekend this is not added to the optional vacation leave.

There are 3 such holidays during 2020 namely:

  1. Sunday 7th June
  2. Saturday 15th August
  3. Sunday 13th December

With effect as from 1st January 2020, an employee working 40 hours per week is entitled to 216 hours of paid annual leave.

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.

As 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 whole or part of the premises by the employer for bridge holidays or any other short periods of shutdown.

Single Income Tax Rates in Malta

Chargable Income (€)
FromToRateSubtract (€)
09,1000%0
9,10114,50015%1,365
14,50119,50025%2,815
19,50160,00025%2,725
60,001and over35%8,725

 

Married Income Tax Rates in Malta

Chargable Income (€)
FromToRateSubtract (€)
012,7000%0
12,70121,20015%1,905
21,20128,70025%4,025
28,70160,00025%3,905
60,001and over35%9,905

 

Parent Income Tax Rates in Malta

Chargable Income (€)
FromToRateSubtract (€)
010,5000%0
10,50115,80015%1,575
15,80121,20025%3,155
21,20160,00025%3,050
60,001and over35%9,050

During 2020, the first 100 hours of overtime work carried out by an employee not being in a managerial position and earning not more than € 20,000 in a calendar year shall be taxed at the rate of 15%.

The following table includes the calculations for Social Security contributions for 2020 for all categories of employees. These rates have been adjusted to reflect the revised calculations as part of the pension reform.

CategoryType of Employed PersonsWeekly Rate of Contribution Payable by
Employed Person
Weekly Rate of Contribution Payable by the Employer
APersons under 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €179.33€6.62€6.62
BPersons over 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €179.33€17.93, 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)€17.93
CPersons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €179.34 but does not exceed €360.45


Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €179.34 but does not exceed €480.49

10% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary10% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary
DPersons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €360.46


Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €480.50

€36.05


€48.05

€36.05


€48.05

EPersons 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 remuneration10% 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 € 4.3810% 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
FPersons 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 remuneration10% 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 € 7.9410% 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 PersonsPersons under 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €179.33
Weekly Employee Rate€6.62
Weekly Employer Rate€6.62
Category B
Type of Employed PersonsPersons over 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €179.33
Weekly Employee Rate€17.93, 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€17.93
Category C
Type of Employed PersonsPersons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €179.34 but does not exceed €360.45


Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €179.34 but does not exceed €480.49

Weekly Employee Rate10% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary
Weekly Employer Rate10% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary
Category D – born on 31 December 1961 or before
Type of Employed PersonsPersons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €360.46
Weekly Employee Rate€36.05
Weekly Employer Rate€36.05
Category D – born on 1 January 1962 or after
Type of Employed PersonsPersons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €480.50
Weekly Employee Rate€48.05
Weekly Employer Rate€48.05
Category E
Type of Employed PersonsPersons 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 Rate10% 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 Rate10% 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 PersonsPersons 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 Rate10% 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 Rate10% 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

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

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

CategoryType of Employed PersonsWeekly Rate of Contribution Payable by Employed Person
SPPersons 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 €9,205 (this category applies only to single persons who are not self-occupied)€26.55
SAis less than €10.666€ 30.77 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 € 10,666 (see NOTE 1 below)
or
€20.51 if the person is a full-time farmer whose annual net earnings do not exceed €10,666 (see NOTE 2 below)
SBPersons born on 31 December 1961 or before whose annual net income exceeds €10,667 but does not exceed €19,017


Persons born on 1 January 1962 or after whose annual net income exceeds €10,667 but does not exceed €24,986

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
SCPersons born on 31 December 1961 or before whose annual net income exceeds €19,018


Persons born on 1 January 1962 or after whose annual net income exceeds €24,987 (see NOTE 1 below)

€54.85
or
€36.57 if a full-time farmer


€72.08
or
€48.05 if a full-time farmer

Category SP
Type of Employed PersonsPersons 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 €9,205 (this category applies only to single persons who are not self-occupied)
Weekly Employee Rate€26.55
Category SA
Type of Employed Personsis less than €10.666
Weekly Employee Rate€ 30.77 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 € 10,666 (see NOTE 1 below)
or
€20.51 if the person is a full-time farmer whose annual net earnings do not exceed €10,666 (see NOTE 2 below)
Category SB
Type of Employed PersonsPersons born on 31 December 1961 or before whose annual net income exceeds €10,667 but does not exceed €19,017


Persons born on 1 January 1962 or after whose annual net income exceeds €10,667 but does not exceed €24,986

Weekly Employee RateThe 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 SC – born on 31 December 1961 or before
Type of Employed PersonsPersons born on 31 December 1961 or before whose annual net income exceeds €19,018
Weekly Employee Rate€54.85
or
€36.57 if a full-time farmer
Category SC – born on 1 January 1962 or after
Type of Employed PersonsPersons born on 1 January 1962 or after whose annual net income exceeds €24,987 (see NOTE 1 below)
Weekly Employee Rate€72.08
or
€48.05 if a full-time farmer

NOTE 1: If the insured person elects to pay a contribution that is less than €30.77, 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.

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.

CategoryType of Employed PersonsWeekly Rate of Contributions payable by a self-occupied person
SAis less than €10.666€ 30.77 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 € 10,666 (see NOTE 1 below)
or
€20.51 if the person is a full-time farmer or breeder whose annual net earnings do not exceed €10,666
SBPersons born on 31 December 1961 or before whose annual net earnings exceeds €10,667 but does not exceed €19,017


Persons born on 1 January 1962 or after whose annual net earnings exceeds €10,667 but does not exceed €24,986

The weekly equivalent of 15% of their annual earnings calculated to the nearest cent
or
The weekly equivalent of 10% if a full-time farmer
SCPersons born on 31 December 1961 or before whose annual net earnings exceeds €19,018


Persons born on 1 January 1962 or after whose annual net earnings exceeds €24,987

€ 54.85
or
€36.57 if a full-time farmer


€ 72.08
or
€48.05 if a full-time farmer

Category SA
Type of Employed Personsis less than €10.666
Weekly Employee Rate€ 30.77 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 € 10,666 (see NOTE 1 below)
or
€20.51 if the person is a full-time farmer or breeder whose annual net earnings do not exceed €10,666
Category SB
Type of Employed PersonsPersons born on 31 December 1961 or before whose annual net earnings exceeds €10,667 but does not exceed €19,017


Persons born on 1 January 1962 or after whose annual net earnings exceeds €10,667 but does not exceed €24,986

Weekly Employee RateThe weekly equivalent of 15% of their annual earnings calculated to the nearest cent
or
The weekly equivalent of 10% if a full-time farmer
Category SC – born on 31 December 1961 or before
Type of Employed PersonsPersons born on 31 December 1961 or before whose annual net earnings exceeds €19,018
Weekly Employee Rate€ 54.85
or
€36.57 if a full-time farmer
Category SC – born on 1 January 1962 or after
Type of Employed PersonsPersons born on 1 January 1962 or after whose annual net earnings exceeds €24,987
Weekly Employee Rate€ 72.08
or
€48.05 if a full-time farmer

NOTE 1: If the insured person elects to pay a contribution that is less than €30.77, 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.

CategoryType of Employed PersonsWeekly Rate of Contribution payable by the Employer
APersons under age 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €179.33€0.20c
BPersons over 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €179.33€0.54c
CPersons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €179.34 but does not exceed €360.45


Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €179.34 but does not exceed €480.49

0.3% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary
DPersons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €360.46


Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €480.50

€1.44c
EPersons under 18 years of age who are following a full-timme 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 remuneration0.3% calculated to the nearest cent of ther basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of €0.13c
FPersons 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 remuneration0.3% 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 €0.24c

The daily rates of benefit payable as from 1st January 2020:-

Daily Rate of Benefit
Type of BenefitSingle Parent or
Married Person with a Spouse not in full-time employment
Any other Person
Sickness Benefit€ 21.21€ 13.73
Injury Benefit€ 31.82€ 23.94
Unemployment Benefit€ 12.86€ 8.41
Special Unemployment Benefit€ 21.60€ 14.25

“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.

Malta Personal Tax & Net Salary Calculator

Broadwing Employment Agency is offering a free tool to calculate your weekly, monthly, or yearly net salary based on the tax rates in Malta. This simple tool gives a clear breakdown of gross salary and deductions including tax, Social Security contributions (SSC/NI), government bonuses and most importantly the net salary you take home.