An Employer of Record in Malta helps companies hire employees without setting up a local entity. The Malta EOR handles payroll, benefits, taxes, and compliance with Maltese labor laws. This solution simplifies international hiring and supports businesses entering Malta’s market quickly and legally.
How Does EOR in Malta Work?
Using a Malta Employer of Record starts when a company selects a local candidate. The EOR becomes the legal employer and handles employment contracts, payroll, taxes, and benefits. The client company manages daily work. The EOR in Malta ensures compliance with Maltese labor laws and files necessary reports. This approach reduces legal risks, simplifies onboarding, and eliminates the need to open a local office.
Benefits of Using a Malta Employer of Record
A Malta EOR offers quick market entry, expert compliance management, and reduced administrative burden. Businesses avoid the cost of opening a local subsidiary and gain access to local knowledge. The EOR handles HR and payroll while the company focuses on operations. It's an ideal solution for scaling in finance, tech, or iGaming.
Malta Employment Landscape
Malta features a skilled, multilingual workforce with a strong presence in services, tech, and finance. The labor market is growing, supported by foreign workers and increased female participation. Challenges include an aging population and skill mismatches. Companies benefit from Malta’s EU labor mobility and pro-business employment policies.
Maltese Labor Laws
Maltese labor law aligns with EU standards and protects both employers and employees. It covers a 40-hour workweek, paid annual leave, parental leave, and mandatory minimum wages. Employers must ensure safe working conditions and follow fair dismissal procedures. A Malta Employer of Record ensures full compliance with all legal requirements.
Cultural Considerations When Hiring Employees in Malta
Maltese workplaces value relationships, politeness, and open communication. Hierarchies are respected but not rigid. Family life is important, and work-life balance is a priority. English is widely spoken, making communication easier. Understanding these cultural elements helps employers build stronger teams and improve employee satisfaction and retention.
Challenges of Direct Hiring Maltese Employees Without an EOR
Hiring directly in Malta requires navigating complex labor laws, managing payroll taxes, and understanding cultural norms. The aging population and talent competition add to hiring difficulties. Without local expertise, compliance risks increase. A Malta EOR handles these challenges, simplifying operations and reducing legal and administrative workload.
How To Hire Employees in Malta with an EOR
Hiring in Malta with a Rivermate EOR is fast, compliant, and efficient. You choose your ideal candidate. Rivermate becomes their legal employer in Malta and handles everything from payroll to benefits and tax compliance. Meanwhile, you manage the employee's daily work and responsibilities. This setup lets you focus on growth while we manage the admin. There’s no need to set up a local entity, and you can start operations in just a few days. It’s the simplest way to build your team in Malta.
Payroll and Taxes With a Malta Employer of Record
Malta’s payroll and tax system requires both employers and employees to contribute to social security and other national funds. A Malta Employer of Record manages all contributions, filings, and payments on your behalf. Employers pay 10% of gross salary to social security and 0.3% to the Maternity Fund. Additional costs may include annual bonuses or fringe benefits. Employees contribute 10%, and income tax is withheld through Malta’s PAYE system. The Final Settlement System usually eliminates the need for employees to file tax returns. Using a Malta EOR ensures full compliance and stress-free payroll processing.
Employee Benefits When Hiring Through a Malta EOR
A Malta Employer of Record ensures your team receives all required benefits under local law. This includes 28 working days of annual leave, paid sick leave, public holidays, and maternity and paternity leave. Notice periods, severance pay, and probation terms are also covered. To stay competitive, many employers add private health insurance, wellness perks, and flexible work policies. A Malta EOR manages both mandatory and optional benefits accurately and on time, helping you build trust with employees while maintaining full legal compliance.
Termination and Offboarding with a Malta EOR
Terminating employment in Malta requires following strict procedures. A Malta Employer of Record handles the entire process from notice periods to severance pay. Whether dismissal is for cause or redundancy, you must follow formal steps including written notice and proper documentation. A Malta EOR manages property collection, exit interviews, final pay, and benefit reconciliation. This approach reduces legal risks, protects your reputation, and ensures compliance with Maltese labor law.
Visa and Work Permits in Malta
Hiring non-EU talent in Malta involves getting the right visa and work permits. Employers must first secure an employment license through JobsPlus. The employee then applies for a Single Permit, which combines residence and work permissions. This process usually takes 8 to 10 weeks and requires a signed contract, proof of qualifications, and a clean background check. EU citizens can work freely but must register if staying long term. Rivermate’s visa support services help manage every step, avoiding delays and ensuring your hiring stays compliant with Malta’s immigration rules.
Can I Hire Independent Contractors With a Malta EOR
A Malta Employer of Record is designed to hire full-time employees, not independent contractors. If you need to engage contractors, you'll want to use a different service. That’s where our Contractor of Record (COR) solution comes in. We help you manage freelance talent in Malta compliantly, handling tax classification, payments, and local regulations. This ensures your contractors stay independent and your business avoids misclassification risks. It’s a secure, scalable way to work with non-employees.
How to Choose the Best Malta EOR
Choosing the best Malta Employer of Record depends on your business goals, hiring volume, and need for local compliance. Look for a Malta EOR that understands Maltese labor law, offers transparent pricing, and provides responsive customer support. Make sure they cover payroll, benefits, tax filings, and onboarding. Ask if they help with offboarding and employee documentation. The best EOR will act as a true partner, helping you scale quickly and legally. If you need to hire contractors too, choose a provider that also offers a COR service for complete coverage.
Costs of a Malta EOR
A Malta Employer of Record typically charges a flat monthly rate per employee. Our service costs €499 per month per employee, covering payroll, tax filings, compliance, and benefits administration. This all-in-one fee allows you to hire in Malta without setting up a local entity. It’s cost-effective, scalable, and risk-free.
Why Rivermate as Malta Employer of Record
Choosing the right Employer of Record in Malta is crucial for businesses expanding into Malta. Rivermate stands out as an exceptional choice, offering a unique blend of personalized service and global expertise that sets us apart from the competition.
Why Rivermate is Different
1. You're Not Just a Number
For many larger EOR providers, smaller businesses often get lost in the shuffle. At Rivermate, we recognize the potential in every company, regardless of size. We're committed to helping you grow, providing the personalized attention and support you need to thrive in the Maltese market.
2. We're Human, Through and Through
In an age of AI chatbots and automated responses, we stand firm in our belief that HR and payroll are fundamentally human endeavors. When you work with Rivermate, you'll interact with real people who genuinely care about your success. Our team is available 24/7, 365 days a year, to address your concerns and answer your questions.
3. Global Reach with Local Expertise
Navigating the complexities of local labor laws and regulations can be daunting. With Rivermate, you gain access to local experts in over 135 countries, including Malta. We combine our global perspective with in-depth local knowledge, ensuring you remain compliant while maximizing your opportunities in the Maltese market.
4. Unparalleled Flexibility
Every business is unique, and we understand that one-size-fits-all solutions rarely work. Whether you need specific clauses in your employment contracts or have particular payroll requirements, we're here to accommodate your needs. Our 100% flexible approach means we can adapt our services to align perfectly with your business objectives.
By choosing Rivermate as your EOR partner in Malta, you're not just getting a service provider – you're gaining a dedicated ally in your global expansion efforts. We're committed to your success, offering the personalized attention, human touch, local expertise, and flexibility you need to thrive in the Maltese market and beyond.
Frequently Asked Questions
Frequently asked questions about EOR services in Malta can help clarify complex topics and address potential gaps in knowledge. Here are five common questions and answers that complement the information already provided:
1. How does Malta's EU membership affect EOR services?
Malta's EU membership provides several advantages for EOR services. It allows for easier movement of employees within the EU, access to a larger talent pool, and simplified compliance with EU-wide regulations. However, companies must still adhere to Malta's specific labor laws and regulations, which may differ from other EU countries.
2. Are there any sector-specific restrictions for EOR services in Malta?
While Malta generally welcomes foreign businesses, some sectors have specific restrictions or requirements. For example, financial services, gaming, and healthcare industries may require additional licenses or approvals. It's advisable to consult with an EOR provider familiar with Malta's regulatory landscape to understand any sector-specific considerations.
3. How does Malta's tax system impact employees hired through an EOR?
Malta operates a progressive tax system for individuals, with rates ranging from 0% to 35%. Employees hired through an EOR are subject to these tax rates, and the EOR is responsible for withholding and remitting taxes. Additionally, Malta has a social security system that both employers and employees contribute to. The EOR handles these contributions on behalf of the client company.
4. Can an EOR in Malta help with obtaining work permits for non-EU employees?
Yes, an EOR can assist with obtaining work permits for non-EU employees. Malta has specific procedures for hiring third-country nationals, including obtaining a single work permit. The EOR can guide you through this process, helping with documentation and liaising with relevant authorities. However, it's important to note that the final decision on work permit approval rests with the Maltese authorities.
5. What are the termination procedures when using an EOR in Malta?
Termination procedures in Malta can be complex and depend on various factors such as the employee's length of service, contract type, and reason for termination. The EOR will ensure compliance with Malta's labor laws, which include providing proper notice periods, severance pay if applicable, and following correct dismissal procedures. It's crucial to consult with the EOR before initiating any termination to ensure all legal requirements are met and to minimize potential risks.