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 the 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.
In Malta, general wage increases linked to the annual cost-of-living adjustment are implemented through the relevant wage orders and ordinarily take effect on 1 January. The national minimum wage remains governed by the National Minimum Wage National Standard Order and, where applicable, by the relevant Wage Regulation Order for the sector.
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; Jewellery 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 a pro-rata basis and by the same hourly rate as that of the full-time workers. The hourly rate is determined by dividing the above amount 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 wage as stipulated in any national standard order or sectoral regulation orders, results in a fine of between 232.94 euros and 2,329.37 euros and an order to pay the employee(s) their due amount.
The 2025 amendment to the Employment and Industrial Relations Act also materially increased penalties for breaches of employment conditions and related legal obligations. On first conviction, the range is €2,000 to €5,000; for a repeat offence, the range is €5,000 to €7,000.
Sources: §3, 4 & 45 of the Employment and Industrial Relations Act (Cap. 452); National Minimum Wage National Standard Order (S.L.452.71); Wage Increase National Standard Order (S.L.452.65); Minimum Wage and Collective Bargaining Regulations, 2024 (L. N.332)
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 the 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.
From 27 August 2025, Malta introduced a pay-transparency layer through amendments to the Transparent and Predictable Working Conditions Regulations. Before employment starts, job applicants must be given the initial pay or pay range for the post and, where relevant, the applicable collective-agreement provisions. During employment, workers may request information on their own pay level and on pay levels for comparable categories of work. The employer must provide that information within two months of a written request.
Sources: §2, 11-15, 22 & 23 of the Employment and Industrial Relations Act; Law No 112 of 2025
Regulations on Work and Wages
- Employment and Industrial Relations Act (CAP. 452)
- National Minimum Wage National Standard Order (S.L.452.71)
