Work and Wages
Minimum Wage
Minimum wage is set by the Government in the National Minimum Wage National Standard Order. The minimum wage rate in Malta is set on the recommendation of Employment Relations Board which has representation from all the social partners including independent experts. Wages at the sectoral level may also be set by the government in accordance with the recommendations of the Board. Wages can also be determined through collective bargaining with the condition that these should not be less than those stipulated by the government in the national standard order or sectoral wages council wage regulation order(s).
Minimum wage level is adjusted yearly based on the rate of inflation calculated by the Retail Price Index. A mandatory cost of living allowance is then added to all wage levels including minimum wages to offset any increase in the cost of living.
The National Minimum Wage National Standard Order is applicable to all employees except those covered by sectoral regulation orders in which case the sectoral regulation order applies. Specific Wage Regulation Orders are issued for the following sectors: Hotels and Clubs; Public Transport; Construction, Agriculture; Beverage; Clay and Glass Work Products; Food Manufacturing; Hire of cars and Private Buses ; Hospitals and Clinics; Jewelery and Watches; Papers, Plastic, Chemicals and Petroleum; Private Security Services; Sextons and Custodians Professional Offices; Tobacco Manufacture; Woodworks and Private Cleaning Services; Textiles and Allied Industries; Leather Goods and Shoes Industries; Transport Equipment, Metal and Allied Industries; Agriculture and Allied Industries.
The national minimum wage rate for part-time workers is calculated on the pro-rata basis and by the same hourly rate as that of the full-time workers. The hourly rate is determined by dividing the amount of minimum wage by forty.
The Minister for Labour appoints labour inspectors to carry out inspections and ensure compliance with all employment and labour legislation, including minimum wage rates set in national standard orders or sectoral regulation orders.
In the case of violation, i.e., failure to pay an employee the the wage as stipulated in any national standard order or sectoral regulation orders results in a fine of between 232.94 euro and 2,329.37 euro and an order to pay the employee(s) their due amount.
Sources: §3 & 4 of the Employment and Industrial Relations Act; National Minimum Wage National Standard Order (S.L.452.71)
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
A wage is defined as remuneration or earnings, payable by an employer to an employee and includes any bonus payable under article 23 of Employment and Industrial Relations Act (paid twice a year, once in June and once in December) other than any bonus or allowance related to performance or production.
The Act also requires that wages be paid in legal tender. Employer is required to pay wages at regular intervals which should not exceed four weeks although a collective agreement may set a different wage payment interval. Deductions from wages are not allowed except in cases provided under the law.
The Legal Notice No.439 of 2018 requires an employer to provide employees with an itemised payslip on or before the due date of wages. The Notice also has minimum requirements for the payslips.
Sources: §2, 11-15, 22 & 23 of the Employment and Industrial Relations Act
Regulations on Work and Wages
- Employment and Industrial Relations Act (CAP. 452)
- National Minimum Wage National Standard Order (S.L.452.71)
