Minimum Wage in Malta - Frequently Asked Questions

Is there a separate legislation relating to minimum wages in Malta?

Minimum wage is set by the Government in the National Minimum Wage National Standard Order.

Do one or more minimum wages exist that is/are determined by law?

One minimum wage exists in Malta.

At what level is minimum wages determined at?

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. Sectoral minimum wage orders may vary by occupation, for example separate minimum wage rates have been set for: 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. Minimum wage set under the National Minimum Wage National Standard Order also varies based on the age of a worker.

On what basis is minimum wage calculated?

The National Minimum Wage National Standard Order and most Sectoral Wage Regulation Orders set wage rates on a weekly basis. 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.

In case of weekly/monthly minimum age, are they based on any fixed number of hours?

The weekly working time in Maltese companies and organisations is 40 hours per week.

Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?

One national 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 set up of the Director responsible for Employment and Industrial Relations who shall act as Deputy Chairperson, four employees representatives, four employers representatives, three other persons to be appointed by the Minister and an independent chairperson. 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).

How are upratings (adjustments) of minimum wage/s decided upon?

Adjustment in minimum wage is decided upon after consultation of employer and trade unions representatives.

How frequently is the fixed component of minimum wage updated?

Fixed component of minimum wage is update annually.

What is/are the yardstick/s on which minimum wage upratings are based?

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.

How is minimum wages compliance regulated?

Minister shall appoint labour inspectors to carry out inspections in order to ensure minimum wage compliance.

Which legal sanctions can be applied in compliance is lacking?

Failure to pay an employee the rate stipulated in any national standard order or sectoral regulation orders, shall result in a fine of between Lm 232.94 and Lm 2,329.37.

To whom/Where can individuals complain, if they think they are earning less than minimum wage?

In case of non compliance individuals can complain to labour inspector.

Which month of the year is minimum wage rate revised in Malta?

The legislation does not state how frequently minimum wage rates should be adjusted, however National Minimum Wage Standard Orders are in fact adjusted on a yearly basis (on the 1st of January of each year) as are most sectoral determinations.

What is National Poverty line?

Click here to know the national poverty line in context with Minimum Wage, living wages and actual wages. Select the currency (Euro or national currency) to know national poverty line.</a