What are the Statutory Social Contributions in Malta?



Modified on: Tue, 23 Sep, 2025 at 9:02 PM

TABLE OF CONTENTS

In Malta, employers and employees are required to contribute to national funds that support various social benefits. These contributions are essential for funding pensions, healthcare, unemployment benefits, and family-related leave.

Social Security Contributions (SCC)

Purpose:
To support:

  • Retirement pensions
  • Sickness and injury benefits
  • Unemployment benefits
  • Public healthcare


Who Must Contribute:
All individuals aged 16 to 65 in insurable employment are required to pay contributions.


Social Security Number

All employees must provide a valid Social Security Number.
They can apply online via the Social Security Number Application Portal.


Contribution Class:

  • Class 1: Paid by employed persons (shared between employer and employee)
  • Class 2: Paid quarterly by self-occupied individuals
  • Class 3: Paid by self-employed persons earning income from rents, interests, or investments.


Contribution Rate (2025):

  • Typically 10% of the basic weekly wage by both employer and employee.
  • Rates vary by age, income bracket, and employment type.
    See full rate table here


Maximum Gross Income for Calculation:

  • EUR 252,579.60 annually


Payment Frequency:

  • Weekly deductions from salary
  • Paid monthly to the Commissioner of Inland Revenue by the employer


Work-Life Balance Fund Contribution

(Previously known as the “Maternity Fund” until 2022)


Purpose:
To reimburse employers for wages paid during statutory family-related leave, including:

  • Maternity leave
  • Paternity leave
  • Parental leave
  • Carers’ leave


Contribution Rate (2024):

  • 0.3% of gross income
  • Paid monthly

This fund supports a broader range of family-related leave beyond maternity, reflecting Malta’s evolving work-life balance policies.


Other Payroll Deductions

Besides SCC and the Work-Life Balance Fund, no other statutory deductions apply unless specified by employment agreements or company policies. 


Malta does not require employer liability insurance.
However, some employers opt for it to cover legal responsibilities for work-related injuries or illnesses, depending on the nature of the job.

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