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Malta Minimum Wage, COLA & Statutory Bonuses 2026

Beyond basic salary, Malta employees receive a statutory bonus package, a weekly cost-of-living adjustment, and can benefit from special tax rates on overtime and part-time income. The 2026 figures were set by Legal Notices 289 and 290 of 2025.

National minimum wage 2026

Under the multi-year National Agreement signed in October 2023, the 2026 minimum wage figures are:

AgeWeeklyHourlyAnnual (≈)
18 and over€229.44€5.74€11,931
17€222.66€5.57€11,578
Under 17€219.82€5.50€11,431

Cost-of-living adjustment (COLA) 2026

The 2026 COLA is €4.66/week (€242.32/year), down from €5.24/week in 2025 reflecting lower inflation. Pro-rata for part-time workers: €0.12/hour. COLA applies to all whole-time and part-time employees, and salary increments cannot fall below it.

Statutory bonuses & weekly allowances 2026

The 2026 statutory package totals €512.52 per full-time worker, paid in four tranches and taxable at the marginal rate but exempt from SSC (Class 1 is computed on basic weekly wage only).

TranchePaidCoversAmount
June BonusEnd of JuneJan–Jun€135.10
December Bonus15–23 DecemberJul–Dec€135.10
March Weekly AllowanceEnd of MarchOct–Mar€121.16
September Weekly AllowanceEnd of SeptemberApr–Sep€121.16

Pro-rata formula: statutory bonus = €0.74 per calendar day in employment × (basic hours ÷ 1040); weekly allowance = €4.66 × weeks worked × (hours ÷ 1040). Bonuses accrue during maternity and parental leave but not during unpaid vacation.

Overtime — 15% flat rate

Qualifying overtime is taxed at 15% flat on the first €10,000 per year (max €1,500 tax), but only if:

  • The employee is non-managerial, AND
  • Basic annual wage is ≤€20,000 (≤€375/week).

Excess or non-qualifying overtime reverts to progressive rates. The employee may opt out entirely if normal rates give a lower bill. Standard overtime rate outside WROs is 1.5× normal for hours above 40/week.

Part-time — 10% flat rate

Part-time employment income is taxed at 10% flat on up to €10,000 per year (€12,000 if self-employed), provided the employee:

  • Has a full-time main job, is a pensioner, or a student, AND
  • The part-time role is not with the same employer or corporate group.

Elected via TA23 (employed) or TA22 (self-employed) by 30 April. Each spouse gets a separate cap. Amounts above the cap go to progressive rates in the tax return.

Leave entitlements 2026

  • Vacation leave: 216 hours (27 days) for a 40-hour week — 192 hours plus 24 added in lieu of three public holidays falling on weekends in 2026 (7 June Sette Giugno, 15 August Santa Marija, 13 December Republic Day).
  • Sick leave: 2 weeks full pay by default (Minimum Special Leave Entitlement Regulations), less a deduction equal to the social security sickness benefit. Wage Regulation Orders are usually more generous.
  • New in 2026: 7 working days miscarriage leave (LN 274/2025) and 7 working days parental bereavement leave (LN 275/2025).
  • Malta has 14 public holidays in 2026.

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