INS Global
Country Guide

Employer of Record in Malta

Last updated

Malta
Capital City
Valletta
Languages
Maltese, English
Currency
Euro (EUR)
Population Size
538,297
Employer Taxes
10.3%
Employee Costs
10%
Payroll Frequency
Monthly

Expanding to Malta? EOR Services Help You Hire Globally, Pay Locally, Expand Effortlessly

An Employer of Record (EOR) in Malta transforms international growth from complex to effortless. With INS Global, you can access global talent across 160+ countries, bypassing traditional expansion barriers and reducing operational costs.

Our EOR service acts as your legal employment partner, handling intricate HR and compliance requirements. This approach allows you to launch in new markets within 48 hours, focusing on strategic growth while we manage the administrative complexities of global workforce management.

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Why Choose an EOR in Malta Over Company Incorporation?

Expanding by incorporating a new company in your target market is a complex, time-consuming, and expensive strategy that requires a legal and physical presence in that market. On the other hand, working with EOR services allows you to simplify the process and expand in a fraction of the time.

A Maltese EORs allows you to:

  • Save time
  • Save money
  • Ensure compliance
  • Leverage local expertise

PEO/EOR Vs Company Incorporation

The Advantage in Figures

PEO/EORCompany Incorporation
Price80% Less Expensive
Market Entry2-5 Days6 Months
Employee TurnoverDecrease by 14%
Recommendation98% of the Current PEO Clients
Administrative FeesSaves an Average of $450
Costly Payroll and Compliance FinesHelp Avoid
Company Growth Rate7 – 9%
ROI27%
Closed During Pandemic-58%
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employer of record

Advantages of Using a Professional Employer Organization

  • icon EOR

    Assured Legal Conformity

    Working with an EOR company in Malta ensures that you can navigate even the most complex labor regulations easily. You can leverage decades of collective industry knowledge to recruit, hire, and manage employees in a simple, and compliant manner.

  • icon EOR

    Save Money and Time

    EORs enable you to outsource your HR and avoid costly mistakes in the process of expanding to Malta. EOR expertise helps you stay compliant while cutting through red tape and preventing fines and other costly errors.

  • icon EOR

    Outsource Unnecessary Tasks

    When you work with outsourcing services, you can focus on growing your company while all the HR-related tasks are performed by local professionals. This includes payroll management, recruitment, headhunting, and contractor management in one simple, elegant solution.

  • icon EOR

    Quicker Market Entry

    If you expand by establishing a corporation there, the entire process can take anywhere from 4 to 12 months in Malta. EOR support, on the other hand, can streamline the process and enable you to launch in less than a week.

  • icon EOR

    One Platform for Everything

    INS Global handles every aspect of HR through an easy-to-use, cloud-based platform that you can access anywhere in the world. This simplifies the entire process and enables you to focus on business growth.

How Does an EOR In Malta Work?

INS Global can help you recruit, hire, and manage employees in four simple steps.

  1. 1

    We work with you to formulate a strategy that best serves your expansion plan.

  2. 2

    Our organization provides a legal entity that allows you to hire staff in Malta.

  3. 3

    We handle all HR-related tasks, such as recruiting, hiring, payroll, and tax compliance.

  4. 4

    Your employees continue to work towards your goals while we handle the HR requirements.

INS GUIDES

Check Our Labor Law Guide

Learn how the Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.

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Labor Law in Malta - 2025

Employment Contracts in Malta

  • Employment in Malta should come with a written agreement that’s signed by both the employee and the legal employer.
  • The employment contract can include a probation period of up to 3 months, during which time the employer can end the agreement without any severance.
  • The employment contract should include the type of agreement, working hours, and outline the employee’s responsibilities.
  • The contract should also include details on employee remuneration, leave allowances, and an official notice period if the employee wishes to end their contract.
  • In Malta, contract termination requires 1-12 weeks’ notice period, depending on employee seniority.
  • An employer may terminate an employee if they do not abide by the rules and regulations stipulated in the employment contract.
  • Severance pay is required if an employer wishes to end a fixed-term contract before the expiry date and typically requires payment of the equivalent of half the expected wages for the remainder of the contract period.
Working Hours in Malta

Maltese labor law states that the working week runs from Monday to Friday.

Full-time employees are expected to work 8 hours a day during the week.

Overtime is acceptable but usually comes with a higher hourly rate of 150% standard salary. Shift workers are given added protection to ensure that they have adequate rest periods.

The maximum working time per week, including overtime, is set at 48 hours.

Types Of Leave

Holidays in Malta

Malta has a list of 14 annual public holidays, where all employees are entitled to paid time off.

Working on these national holidays entitles employees to higher pay of up to 300% standard salary.

The minimum annual leave allowance for full-time employees is 24 working days per year.

Sick Leave in Malta

Maltese labor law stipulates that all employees are entitled to 2 weeks of sick leave if they are unable to work due to illness.

In most cases, workers will need to provide a medical certificate as proof of illness.

Employees are required to notify their employer that they are ill and should do so before the start of the working day.

Employees are entitled to receive full pay during sick leave as stipulated in their employment contract. The employer pays for the first 3 days, with social security taking care of payment beyond this.

Maternity / Paternity Leave in Malta

Female employees are entitled to 14 weeks of maternity leave.

The start of maternity leave can be no earlier than 11 weeks before the expected date of childbirth.

During maternity leave, female employees are entitled to a maternity leave allowance that’s provided by the state.

Male employees expecting a child are also entitled to 10 days of paternity leave.

The start of paternity leave should be within the first 16 weeks after childbirth.

Tax Laws in Malta

  • Employers are required to manage payroll taxes on behalf of their employees.
  • Employers must deduct payroll taxes and other social contributions before paying staff, and both employees and employers each pay the equivalent of 10% of the employee’s earnings into their social security fund
  • Income tax is calculated progressively based on earnings and ranges between 0% to 35% for amounts above EUR 60,000.
  • The corporate tax rate in Malta is 35%.

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Frequently Asked Questions

Global Employer of Record is an effective solution for companies looking to expand their workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiently, providing access to a global talent pool while still managing payroll compliance in each country.

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