In Malta, the law mandates a comprehensive set of benefits for employees. These benefits are designed to ensure fair treatment, financial security, and well-being for workers.

Paid Leave

Malta offers a generous paid leave system for employees. Here's a breakdown:

• Annual Leave: Employees working a standard 40-hour week are entitled to a minimum of 224 hours (28 working days) of paid annual leave per year. This includes:
  • 192 hours of base entitlement
  • Additional hours to compensate for public holidays falling on weekends (32 hours in 2024, as 6 out of 14 public holidays fall on weekends)
• Sick Leave: Employees are entitled to 2 weeks (10 working days) of paid sick leave per year under the Wage Regulation Order (WRO). Beyond this period, employees may be eligible for sickness benefits from Social Security upon presenting a valid medical certificate.
• Public Holidays: Malta observes 14 public holidays annually. Employees receive paid leave for these days.

Parental Leave

Malta supports working parents with dedicated leave provisions:

• Maternity Leave: Pregnant employees are entitled to 18 weeks of paid maternity leave, starting four weeks before the expected due date.
• Paternity Leave: Fathers are entitled to two weeks of paid paternity leave upon the birth of their child.

Other Mandatory Benefits

• Probationary Period: The law allows for a probationary period in employment contracts, but its duration is not fixed and can be negotiated between employer and employee.
• Notice Period: Both employers and employees are required to provide a minimum notice period before termination of employment. The specific notice period depends on factors like length of service.
• Severance Pay: In cases of redundancy or dismissal without just cause, employees may be entitled to severance pay.
• Overtime Pay: Employees working beyond their standard hours are entitled to overtime pay at a premium rate.
• Social Security: Employers are required to contribute to a social security system that provides benefits like unemployment benefits and pensions for employees.

In Malta, many companies go beyond the mandated employee benefits to offer additional perks that attract and retain top talent. These optional benefits can range from health and wellness initiatives to work-life balance and flexibility options, financial and professional development opportunities, and lifestyle and leisure benefits.

Health and Wellness

• Private Health Insurance: Many companies offer health insurance plans that cover a wider range of medical services than the public healthcare system.
• Wellness Programs: Companies may sponsor gym memberships, fitness classes, or on-site wellness initiatives to promote employee health.

Work-Life Balance and Flexibility

• Flexible Work Arrangements: Remote work options, flexible working hours, or compressed workweeks can be offered to enhance work-life balance.
• Additional Paid Leave: Some employers provide extra paid vacation days or personal leave days beyond the legal minimum.

Financial and Professional Development

• Performance Bonuses: Employers may offer bonuses tied to individual or company performance to incentivize employees.
• Profit Sharing: Some companies share a portion of their profits with employees, fostering a sense of ownership and engagement.
• Training and Development Opportunities: Companies may invest in employee development through training programs, conferences, or educational stipends.

Lifestyle and Leisure Benefits

• Company Discounts: Employees may receive discounts on various products or services, such as gym memberships, travel, or entertainment.
• On-Site Amenities: Offering free or subsidized meals, laundry services, or childcare facilities can enhance employee convenience.

Malta's healthcare system operates on a two-tiered model, comprising a public National Health Service (NHS) funded by national insurance contributions and a private healthcare sector. The health insurance requirements for employees largely depend on their nationality.

EU/EEA Citizens and Maltese Nationals

EU/EEA citizens and Maltese nationals are automatically entitled to utilize the NHS by registering for a Maltese social security card. This grants them coverage for various healthcare services, including accident and emergency care, hospital stays, and visits to government clinics. Some additional documentation might be required, such as a European Health Insurance Card (EHIC) for temporary stays or a Certificate of Entitlement to Healthcare (SI) from their home country.

These individuals also have the option to pay extra for private health insurance, which offers benefits like shorter waiting times for treatment, choice of consultant and hospital, and access to private rooms.

Non-EU/EEA Citizens

For non-EU/EEA citizens, eligibility to use the NHS depends on their national insurance contributions. If their employer offers health insurance as part of their benefits package, they can access the NHS. Alternatively, they can opt to pay national insurance contributions privately to become eligible for NHS services.

Without health insurance, using the NHS requires paying for treatment upfront, with potentially high costs. In such cases, obtaining private health insurance is highly recommended.

To summarize, EU/EEA citizens and Maltese nationals generally don't need separate health insurance as the NHS covers them. Non-EU/EEA citizens can access the NHS through employer-provided insurance or private national insurance contributions. Private health insurance offers advantages like faster access to treatment and a wider range of choices for non-EU/EEA citizens and those who prefer it.

Malta offers a two-pronged approach to retirement planning, combining a mandatory state pension system with voluntary private options.

State Pension Scheme

This mandatory system provides a basic pension upon retirement, funded through national insurance contributions. Both employers and employees contribute a percentage of the employee's salary.

Key aspects of the State Pension Scheme include:

• Eligibility: All employed and self-employed individuals earning above a set threshold (€930 in 2023) contribute and are eligible for benefits.
• Retirement Age: The current retirement age is 62 but is gradually increasing to 67 by 2032.
• Benefits: The amount received depends on contribution history and can be lower than what's needed to maintain pre-retirement living standards.

Private Pension Plans

Voluntary private pension plans offer a way to supplement the state pension and provide a more comfortable retirement. Here are the main options:

• Employer-Sponsored Pension Plans: Many companies in Malta offer employer-sponsored pension plans as part of their employee benefits package. These plans involve contributions from both employers and employees, with tax benefits for both parties.

  • Benefits: Employer contributions can make a significant difference in the final retirement corpus. Tax breaks incentivize saving for retirement.

• Personal Pension Plans: Individuals can also set up their own personal pension plans with insurance companies or investment firms.

  • Benefits: Individuals have more control over investment choices and contribution levels. Tax incentives exist for personal contributions as well.

Additional Considerations:

• Tax Benefits: Both employer and employee contributions to approved pension plans benefit from tax breaks, making them a tax-efficient way to save for retirement.
• Investment Options: Private pension plans offer various investment options allowing individuals to tailor the risk-reward profile to their preferences.