2026 Sectoral Reform: 7 Changes Employers May Have Overlooked
by Kristina Abela
28/09/2026
On the 30th of April 2026, a package of 31 Legal Notices was published as part of a reform of Malta’s sectoral employment laws, alongside an additional Legal Notice amending the Minimum Special Leave Entitlement Regulations, Subsidiary Legislation 452.101 – read more about the amendments to the said Regulations here.
The new sectoral employment laws replace the Wage Regulation Orders (or WROs), which have been re-issued as (Conditions of Work) Regulation Orders (or CWROs), (now Subsidiary Legislation 452.127 and 452.141 to 452.171). This reform sought to harmonise employee entitlements across certain sectors.
For context, sectoral employment laws regulate the minimum conditions of work (such as minimum remuneration rates and minimum leave entitlements) for certain sectors. Currently, 31 sectors are covered, ranging from construction, hospitality and private schools to digital platform delivery, travel, and retail.
What Has Changed: At a Glance
With the new framework now in force, employers should take the opportunity to revisit the key changes and consider whether their employment practices need updating accordingly.
In summary, employers should be aware of the following changes:
- Express Rule about Collective Agreements
- Replacement of WROs
- Immediate Sick Leave Entitlement
- Harmonisation of Leave Entitlements
- No Age-Based Distinctions in Minimum Wage
- Revised Minimum Wage for Longer Working Weeks
- Provision of Uniforms
- Express Rule about Collective Agreements
A Closer Look
Set out below is a closer look at each of the changes in general terms:
The former Wage Regulation Orders are now gone (repealed), and in their place are the new (Conditions of Work) Regulation Orders, meaning there has been a change in the legislation title and reference.
Employees are now entitled to paid sick leave from the first day of employment; however, said entitlement is calculated pro rata according to the employee’s date of employment in the relative calendar year. Under some of the former Wage Regulation Orders, employees had to complete six months or even one year of service before becoming eligible for the paid sick leave entitlement. This waiting period has now been removed.
Annual leave and other forms of leave (notably, excluding sick leave) have been aligned with the general employment laws concerning the organisation of working time and minimum special leave entitlements. This means that employees covered by the sectoral employment laws will benefit from the same leave framework applicable across sectors. The recent amendments to bereavement leave and marriage leave as described in our other insight (accessible here) apply equally to sectors covered by the (Conditions of Work) Regulation Orders.
The reform also removed age-based distinctions in minimum remuneration. Previously, different minimum remuneration rates could apply depending on whether the employee was aged 16, 17 or 18 and over. The highest minimum remuneration rate is now applicable irrespective of the employee’s age.
Previously, WROs could include different working weeks for different categories of workers within the same sector. Some workers worked a 40-hour week, while others worked a longer week (for example, 48, 54 or even 60, as is common for watchpersons). Despite this, the same minimum weekly wage rate applied across the board, regardless of the length of the working week. Under the new (Conditions of Work) Regulation Orders, the approach has changed. The minimum weekly wage rate is now adjusted to reflect the actual number of hours worked. As a result, workers working longer weekly hours are entitled to a higher minimum weekly wage rate.
Where an employee is required to wear a uniform in the course of their duties, the employer is required to provide such uniform free of charge. The same applies to any personal protective equipment required in accordance with the applicable health and safety legislation. Therefore, where wearing a uniform is a requirement, it must be provided by the employer rather than covered through a uniform allowance.
The new framework confirms that where a collective agreement applies alongside a sectoral employment law, the more favourable conditions will prevail. This means that, where both a sectoral employment law and a collective agreement apply, employees will benefit from the more favourable conditions.
Areas for Employers to Review
Where a sectoral employment law applies, employers should consider whether the changes introduced by the 2026 reform require any adjustments to their existing practices, policies and systems.
In particular, payroll and leave management arrangements should be reviewed, in light of the day-one sick leave entitlement and the harmonised leave rules. Employers should also review their dress code and, or uniform policies to ensure these are aligned with the updated requirements.
More broadly, communication of the changes to HR, payroll, and management teams will support correct and consistent implementation in practice. Where appropriate, affected employees should also be informed of any changes relevant to their employment.
