Transparent Employment Conditions

Gone are the days that employers can get away with not having clear terms of employment explained in writing to employees, and also gone are those days that contracts of employment can demand the life out of employees!

Malta’s employment law framework has undergone reform in recent years, particularly with the introduction of the Minimum Wage and Collective Bargaining Regulations, 2024 (Legal Notice 332 of 2024) and the Transparent and Predictable Working Conditions Regulations (Legal Notice 112 of 2025). These laws transpose key EU directives, including Directive (EU) 2022/2041 on adequate minimum wages and Directive (EU) 2023/970 on pay transparency.

Minimum Wage

All employees in Malta are entitled to a statutory minimum wage, which varies by sector. Sector-specific Wage Regulation Orders (WROs) establish minimum pay, overtime rates, and allowances for industries such as retail, hospitality, construction, and healthcare.

(Special rules apply to seafarers engaged onboard Malta-flagged seagoing vessels)

Transparent Employment Conditions

Employers are required to disclose key employment terms in writing to employees, within mandatory time periods. These include job title, pay structure, working hours, leave entitlements, and termination procedures.

Additionally, job applicants must be informed of salary ranges before employment begins, and employees may request pay data for comparable roles.

Cost of Living Allowances

The Cost-of-Living Allowance (COLA), which is mandatory for all employers in Malta, including those in the public and private sectors, must be added to the basic wage as a statutory wage adjustment intended to counter inflation and maintain purchasing power.

COLA is calculated annually based on the Retail Price Index (RPI) and announced during the government’s budget speech, becoming effective from 1 January of the following year.

Government Bonus and Allowances

Under Article 23 of the Employment and Industrial Relations Act (Chapter 452), employers are required to pay statutory bonuses and weekly allowances to employees on a biannual basis. These payments are structured as follows:

• Bonus: €135.10 in June and December
• Weekly Allowance: €121.16 in March and September

These payments are taxable and must be paid within specific timeframes. Part-time employees receive these amounts on a pro-rata basis.

How we help: We help clients understand applicable minimum wages, ensure compliance, undertake equal pay and payroll audits and assist with wage policy reviews. We can help with drafting job adverts, employment contracts, as well as help navigate collective bargaining, conciliations and disputes.