Guide to living and working in Malta

Malta

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Country Overview

 

Population

401,880

Unemployment Rate

7.8% (11/07)

Average annual unemployment rate 1995 – 2004

8.4%

GDP

€6.01bn / $9.34bn (2007)

GDP per head

€14,906 / $23,200 (2007)

Capital

Valletta

Major language

Maltese, English

Life Expectancy (UN)

 77 years (men)

81 years (women)

Monetary unit

1 euro = 100 cents

Internet domain

.mt

International dialing code

+356

 

Malta has a favourable geographic location and a productive labour force. The economy is dependent on foreign trade, manufacturing (especially electronics and pharmaceuticals) and tourism. Malta produces only about 20% of its food needs, has limited fresh water supplies and has few domestic energy sources. Nevertheless, economic recovery of the European economy has lifted exports, tourism and overall growth. Malta adopted the Euro on the 1st of January 2008.


The Economy

 

 

Industries include: tourism, electronics, shipbuilding and repair, construction, food & beverages, textiles, footwear, clothing and tobacco.

Pay

 

 

 


Human development Index

 

Ranking:  34th
Index value:  0.878


The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 

Getting a job

Overview of the labour market:

During the last quarter of 2006, the total number of employed persons was estimated at 152,743 persons, with the majority (26.2%) aged between 25 to 34 years. The most common job categories were technicians and associate professionals which amounted to 24,093 persons or 15.8%, followed by service workers, shop and sales workers: 15.7% of the total employed.

136,919 employees were full time, of which 72.6% were males and 27.4% were females. Of 15,824 persons who worked either full time with reduced or part time, 30.1% were males and 69.8% were females.

Unemployment is relatively high with no significant change since 2005. The majority of the unemployed were in the 15 to 24 age bracket irrespective of gender.

Applying for a job:

All job applications should have a covering letter accompanied by a Curriculum Vitae (CV). You should include copies of certificates and references id applicable. Application for jobs can be either typed or handwritten. The CV is usually up to two pages long using the standard European format. It should include: personal details, education, knowledge of languages, computer skills and particular areas of competence, career information and hobbies.

 

Conditions and rights

Employment law:

Malta’s 1974 Republican Constitution enshrines the right to work for all and the state’s role in promoting the necessary conditions for this to take place. The Constitution also upholds a number of workers’ rights, such as the maximum number of daily working hours, a weekly rest day, minimum working age, gender equality, professional and vocational training for workers, contributory social insurance and the provision of the means of subsistence for those unable to work.
Working hours:

Standard hours: The weekly working time is 40 hours per week. Maximum weekly working time for all types of employment sectors is 48 hours including overtime, which must be paid extra. No employer may oblige a worker to work more than 48 hours a week unless he has first obtained the worker’s agreement.

Overtime: must not exceed the maximum working time laid down by the employment act which is 48 hours in total per week.

Holidays and leave: Employees in full-time employment have 25 days paid leave per year. Paid leave can normally be taken after the probation period or else as agreed with the employer.

Maternity leave: An employee may apply for maternity leave for an uninterrupted period of fourteen weeks. She has to notify the employer at least four weeks before the maternity leave begins. An employee on maternity leave is entitled to maternity leave with full wages during the first thirteen weeks of leave, with the fourteenth week unpaid.

Parental leave: Both male and female workers may take parental leave. They may be granted unpaid parental leave to take care of their child for a period of three months until the child has reached the age of eight years. Employees in the public sector may take a maximum of one year unpaid parental leave per child and a once only, 5 year unpaid leave. Parental leave can be shared between both parents.

Sick leave: Employees must notify the employer as soon as possible after they fall ill. A doctor’s certificate is normally required after the third day of ill health, but some employers require a certificate on the first day. Employees are entitled to wages during sick leave. The length of entitlement to sick pay depends on how long the employee has been working for the employer. If ill health continues in the long term, the employer is no longer obliged to pay wages; the employee becomes entitled to sickness benefits from the Social Security Department.

Other types of leave: Employers are bound by law to grant to every employee a minimum total of fifteen hours, with pay per year, as time off from work for urgent family matters. The total number of hours used by the employee will be deducted from their annual leave entitlement.

Malta Public holidays: 1st January, 10th February, 19th March, 31st March, Good Friday, Easter, 1st May, 7th June, 29th June, 15th August, 8th September, 21st September, 8th December,13th December and 25th December.

 

Contracts

Types of employment:

Only people over the age of 16 can enter employment, A worker is aged between 16 and 18 is classified as a ‘young worker’.

The most common employment contracts are full-time contracts with an indefinite period, sometimes called a permanent contract. Latest trends in the employment market show that fixed term contracts are becoming more common in both higher managerial grades and in skilled labour for project contracts. After a certain number of years the temporary employment contract has to be switched to a fixed employment contract, which engages the employee on a permanent basis.

In Malta the trend to hire temporary staff from specialised agencies is on the increase. This is mainly in less-skilled services sectors and is less popular in the professional sector. Temporary staffing agencies are allowed to charge expenses from the client to cover tax, national insurance, indemnity and labour costs.

Employment contracts:

Employment in Malta always involves an employment contract whereby the employee agrees to perform specified work for an employer in return for agreed wages. This contract does not have to be written, but the employer is legally bound to detail the employment terms in writing. Employment may be for a fixed term or for an indefinite term and on a full- or part-time basis.

A probation period is typically agreed upon at the beginning of a new job. The length of the trial period is normally six months unless otherwise agreed for a shorter period. During the probationary period the employment may be terminated by either party without assigning any reason. Temporary and fixed term employment contracts expire when the specified period ends without a notice of termination being given.

 

Visas and work permits

Visas:

Citizens of EU/EEA countries & Switzerland: Malta does not apply any restrictions on the access to its labour market.
‘New’ EU Members: (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia) are also welcome to live and work in Malta on the same basis as nationals of existing EU Members.
Non-EU citizens: must obtain a work visa or permit to work in Malta.

In principle there are two types of visas:

  • A one-time visa - This is usually granted for one month.
  • A long-term visa - This is usually granted for a 12 month period by the Ministry of Police. The visa is intended for tourists and business people who visit Malta frequently.

Nationals of certain countries can visit Malta for up to three months without a visa but will need to be granted a work permit to take up employment. The following nationalities may visit Malta without a visa for up to three months:
Andorra, Argentina, Australia, Austria, Belgium, Brunei Darussalam, Bulgaria, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Latvia, Libya, Liechtenstein, Lithuania, Luxembourg , Malaysia, Monaco, New Zealand, Norway, Poland, Portugal , Republic of Korea, Romania, San Marino, Singapore, Slovak Republic, Slovenia , Spain, Sweden, Switzerland, The Netherlands, United Kingdom, United States of America, Uruguay and The Vatican City.

Nationals of countries not mentioned above will need a visa to visit Malta

Work permits:

The permit is usually granted for a year to people with professional expertise that is sought after in the local Maltese economy. A foreign resident who wants to work in Malta is required to produce an authorization from the potential employer. A foreign resident who is interested in setting up an independent business is required to produce a letter of recommendation from a person with whom he/she will have commercial connections.

Resident’s permits: In order to obtain a permanent resident's permit, financial stability must be shown in one of the two following ways:

  • Minimum capital of  €349,406
  • Annual income of at least  €23,294

After receipt of the permit, the following requirements must be met:

  • Ownership of an apartment with a value of at least €69,881 (for a house - at least €116,469).
  • A lease of real estate for at least €4,193.

 

Tax, social security and healthcare

Taxation system:

The taxation of an individual's income is progressive, which means the higher an individual's income, the higher the rate of tax paid. The rates of tax for an individual in 2008 were 15-35%. There are reduced tax rates for certain income earners. The rate of corporate tax in 2008 was fixed at 35%. There are reduced rates for certain companies.

An individual who is a Maltese resident pays tax on his income as a wage earner or as a self-employed person. A person who meets the criteria of a "permanent resident" (usually, a stay of more than 183 days a year) will be taxed on his income in Malta and overseas. A foreign resident who is employed in Malta pays tax only on the income he earns in Malta. An employer is obligated to deduct, each month, taxes from his employees’ salaries.

Malta individual income tax rates 2008 (single resident):

Income Band (€)

Tax (%)

0 – 8,150

0%

8,151 – 14,000

15%

14,001 – 19,000

25%

19,001+

35%

 

Social security system:

National insurance contributions and benefits are the backbone of social welfare, aimed at reducing the financial hardships of sickness, disability, injury, old age and unemployment. Malta’s social welfare is managed by the Department of Social Security in Valletta. National insurance is collected by the taxation department, but the fund is administered by the social security authorities. The health and housing divisions also play an instrumental role in providing medical care and housing support.

Health system:

Malta enjoys a high standard of medical care. Medical facilities are available through the regional health centres and three general hospitals. There are also special clinics and a number of private hospitals. Persons who may need to bring medicine into Malta or purchase fresh supplies are advised to carry a letter from their family doctor. Medical insurance is advisable if seeking care in private clinics and hospitals.

In Malta, the Government provides a comprehensive free health service to all residents. This health service is funded from general taxation. All residents have access to preventive, investigative, curative and rehabilitative services in Government Health Centres and Hospitals. Persons with a low income are ‘means tested’ by the Department of Social Security. If they qualify for assistance, they receive a card which entitles them to free medicines and other prescriptions. In additions, a person suffering from one or more of a specified list of chronic diseases is also entitled to receive free treatment, irrespective of financial means.