Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
EUR € (Euro)
Employer contributions
10% employer NI
Minimum wage
€5.24 EUR/hour (National Minimum Wage 2026)
Payment frequency
Monthly
Calendar year (Jan 1 to Dec 31)
Capital
Valletta
Timezone
CET (GMT+1)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~€3,300 EUR total
/month
For a gross salary of
€3,000 EUR gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
10% employer NI
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll → FS5 to CFR → NI deductions → annual FS3 by Feb
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~€3,300 EUR total
Example gross salary
€3,000 EUR gross/month
~€2,025 EUR net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~€300 EUR employer NI
Employer contributions on that salary
Employer contributions
10% employer NI
Employee contributions
10% employee NI (capped)
Total cost above gross
~10% employer NI above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~€2,000 EUR
Per month
Valletta
€2,200 - €3,500 EUR
~20%
Sliema / St. Julian's
€2,500 - €4,000 EUR
~25%
Monthly gross. National average salary per year:
~€24,000 EUR
Minimum wage
€5.24 EUR/hour (National Minimum Wage 2026)
Paid:
Hourly
Extra pay
Annual Bonus
Statutory: €135 + COLA adjustments
June and December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% → 15% → 25% → 35%
Tax year:
Calendar year (Jan 1 to Dec 31)
Filing calendar
Monthly by end of month (FS5)
Social security payments
June 30 (TA22/TA24)
Income tax
By end of February
Employee tax certificate
FS3 Annual Statement
June 30
Annual return
Tax Return (TA22/TA24)
Late payment penalties
Late NI/tax: 1.5% monthly; late FS5: €233 penalty
Who collects what
CFR (Commissioner for Revenue)
Income tax and NI
Social Security Department
Social benefits and NI
Department of Industrial and Employment Relations
Employment law enforcement
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
24 working days (192 hours)
Public holidays
14 public holidays
Sick leave
Sick Leave
Employer: 2 weeks fully paid; DSS: Sickness Benefit
Maternity leave
18 weeks
100% via DSS Maternity Benefit
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contract of Employment (Definite/Indefinite)
Fixed term
Definite Contract
Independent contractor
Self-Employed
Collective agreements
Collective Agreement
Ending employment
Severance Allowance
How it is calculated
Not statutory except for fixed-term non-renewal
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
COLA (Cost of Living Adjustment) Non-Application
Risk Level: HIGH
Malta mandates an annual Cost of Living Adjustment issued by the government each January. In 2026, this was €6.95/week. All employees, including those above minimum wage, must receive this increase. Failing to apply COLA to existing salaries is the most common compliance failure found by DIER.
Part-Time Employee NI Class Errors
Risk Level: MEDIUM
Malta has distinct NI contribution classes for full-time employees (Class 1) and part-time workers (Class 2 or special Part-Time rate). Applying Class 1 rates to part-time workers results in overpayment, while applying Class 2 to full-time workers generates under-contributions.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.