How to compute malta-payroll for Malta, tax year 2026: rates, thresholds, and step-by-step rules with primary-source citations.
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Tax year period
1 January – 31 December (calendar year)
Band 1: 0% rate upper threshold
EUR 0 – 12,000 @ 0%; subtract EUR 0Income Tax Act (Cap. 123)
Band 2: 15% rate bracket
EUR 12,001 – 16,000 @ 15%; subtract EUR 1,800Income Tax Act (Cap. 123)
Band 3: 25% rate bracket
EUR 16,001 – 60,000 @ 25%; subtract EUR 3,400Income Tax Act (Cap. 123)
Band 4: 35% rate bracket
EUR 60,001+ @ 35%; subtract EUR 9,400Income Tax Act (Cap. 123)
Band 1: 0% rate upper threshold
EUR 0 – 15,500 @ 0%; subtract EUR 0Income Tax Act (Cap. 123)
Band 2: 15% rate bracket
EUR 15,001 – 23,000 @ 15%; subtract EUR 2,250Income Tax Act (Cap. 123)
Band 3: 25% rate bracket
EUR 23,001 – 60,000 @ 25%; subtract EUR 4,550Income Tax Act (Cap. 123)
Band 4: 35% rate bracket
EUR 60,001+ @ 35%; subtract EUR 10,550Income Tax Act (Cap. 123)
Band 1: 0% rate upper threshold
EUR 0 – 17,500 @ 0%; subtract EUR 0Income Tax Act (Cap. 123)
Band 2: 15% rate bracket
EUR 17,501 – 26,500 @ 15%; subtract EUR 2,625Income Tax Act (Cap. 123)
Band 3: 25% rate bracket
EUR 26,501 – 60,000 @ 25%; subtract EUR 5,275Income Tax Act (Cap. 123)
Band 4: 35% rate bracket
EUR 60,001+ @ 35%; subtract EUR 11,275Income Tax Act (Cap. 123)
Band 1: 0% rate upper threshold
EUR 0 – 22,500 @ 0%; subtract EUR 0Income Tax Act (Cap. 123)
Band 2: 15% rate bracket
EUR 22,501 – 32,000 @ 15%; subtract EUR 3,375Income Tax Act (Cap. 123)
Band 3: 25% rate bracket
EUR 32,001 – 60,000 @ 25%; subtract EUR 6,575Income Tax Act (Cap. 123)
Band 4: 35% rate bracket
EUR 60,001+ @ 35%; subtract EUR 12,575Income Tax Act (Cap. 123)
Band 1: 0% rate upper threshold
EUR 0 – 13,000 @ 0%; subtract EUR 0Income Tax Act (Cap. 123)
Band 2: 15% rate bracket
EUR 13,001 – 17,500 @ 15%; subtract EUR 1,950Income Tax Act (Cap. 123)
Band 3: 25% rate bracket
EUR 17,501 – 60,000 @ 25%; subtract EUR 3,700Income Tax Act (Cap. 123)
Band 4: 35% rate bracket
EUR 60,001+ @ 35%; subtract EUR 9,700Income Tax Act (Cap. 123)
Band 1: 0% rate upper threshold
EUR 0 – 14,500 @ 0%; subtract EUR 0Income Tax Act (Cap. 123)
Band 2: 15% rate bracket
EUR 14,501 – 21,000 @ 15%; subtract EUR 2,175Income Tax Act (Cap. 123)
Band 3: 25% rate bracket
EUR 21,001 – 60,000 @ 25%; subtract EUR 4,275Income Tax Act (Cap. 123)
Band 4: 35% rate bracket
EUR 60,001+ @ 35%; subtract EUR 10,275Income Tax Act (Cap. 123)
Band 1: 0% rate upper threshold
EUR 0 – 18,500 @ 0%; subtract EUR 0Income Tax Act (Cap. 123)
Band 2: 15% rate bracket
EUR 18,501 – 25,500 @ 15%; subtract EUR 2,775Income Tax Act (Cap. 123)
Band 3: 25% rate bracket
EUR 25,501 – 60,000 @ 25%; subtract EUR 5,325Income Tax Act (Cap. 123)
Band 4: 35% rate bracket
EUR 60,001+ @ 35%; subtract EUR 11,325Income Tax Act (Cap. 123)
Monthly tax withholding formula
(Cumulative gross emoluments × Rate − Subtract) / 12, adjusted cumulatively
Category A: flat weekly SSC (under 18, wage ≤ EUR 229.44)
EUR 6.62 flat/week; annual max EUR 344.24Social Security Act (Cap. 318)
Category A: wage ceiling for flat rate
EUR 229.44/weekSocial Security Act (Cap. 318)
Category B: flat weekly SSC (age 18+, wage ≤ EUR 229.44)
EUR 22.94 flat/week (or 10%); annual max EUR 1,192.88Social Security Act (Cap. 318)
Category C1: weekly SSC rate (born ≤ 1961, wage EUR 229.45–490.38)
10% of basic weekly wageSocial Security Act (Cap. 318)
Category C1: wage band upper threshold
EUR 490.38/weekSocial Security Act (Cap. 318)
Category D1: weekly SSC cap (born ≤ 1961, wage ≥ EUR 490.39)
EUR 49.04/week; annual max EUR 2,550.08Social Security Act (Cap. 318)
Category C2: weekly SSC rate (born ≥ 1962, wage EUR 229.45–559.30)
10% of basic weekly wageSocial Security Act (Cap. 318)
Category C2: wage band upper threshold
EUR 559.30/weekSocial Security Act (Cap. 318)
Category D2: weekly SSC cap (born ≥ 1962, wage ≥ EUR 559.31)
EUR 55.93/week; annual max EUR 2,908.36Social Security Act (Cap. 318)
Monthly-paid conversion formula
Monthly salary × 12 / 52
Employer SSC rate
10% of basic weekly wageSocial Security Act (Cap. 318)
Employer SSC weekly ceiling (D2 category, born ≥ 1962)
EUR 55.93/weekSocial Security Act (Cap. 318)
Maternity Trust Fund levy rate
0.30% of basic weekly wage
Maternity Trust Fund maximum weekly levy (D2 category)
EUR 1.68/week
Total employer weekly cost per high-earner (born ≥ 1962): SSC + Maternity
EUR 57.61/week (EUR 55.93 SSC + EUR 1.68 Maternity); EUR 2,995.72/year
NMW – Age 18+
EUR 229.44/weekEmployment and Industrial Relations Act (Cap. 452)
NMW – Age 17
EUR 222.66/weekEmployment and Industrial Relations Act (Cap. 452)
NMW – Under 17
EUR 219.82/weekEmployment and Industrial Relations Act (Cap. 452)
NMW hourly rate (age 18+, part-time, 40-hour basis)
EUR 5.74/hour (EUR 229.44 / 40)Employment and Industrial Relations Act (Cap. 452)
Government Bonus – amount per half-year
EUR 135.10
Government Bonus – payment months
June and December
Government Bonus – taxable
Yes
Weekly Allowance – amount per half-year
EUR 121.16
Weekly Allowance – payment months
June and December
Weekly Allowance – taxable
Yes
COLA annual amount (2026)
EUR 512.52/year
COLA quarterly payment
EUR 128.13/quarter
COLA taxable status
No – tax-exempt
Standard weekly hours threshold
40 hours/weekEmployment and Industrial Relations Act (Cap. 452)
Overtime rate (no WRO)
1.5× normal hourly rate for hours above 40/week (averaged over 4 weeks)Employment and Industrial Relations Act (Cap. 452)
Maximum average weekly hours
48 hours/week (averaged over 17 weeks)
Full-time annual leave entitlement (40 hrs/week)
192 hours (24 days) per calendar yearEmployment and Industrial Relations Act (Cap. 452)
Minimum non-substitutable annual leave
4 weeks (160 hours)
Leave accrual rate
2 days per month from employment start
Number of public holidays per year
14
Full-time sick leave entitlement (no WRO)
2 working weeks per calendar year on full pay
Medical certificate requirement for extended absence
Within 1 week for absences > 7 days
Total maternity leave duration
18 weeks uninterrupted
Employer-paid maternity weeks
First 14 weeks at basic salary rate
Government Maternity Leave Benefit – final 4 weeks
EUR 213.54/week
Notice requirement before maternity leave
4 weeks written notice to employer
Mandatory post-birth leave minimum
6 weeks immediately after delivery
Birth leave (father/partner)
10 working days on full pay
Parental leave (unpaid)
4 months per parent per child (until child age 8)
Bereavement leave
2 days
Parental bereavement leave (child < 18 death)
7 working days
Miscarriage leave (both parents)
7 working days
Urgent family leave (force majeure)
1 day per event
Marriage leave
2 days
Non-compliance fine range
EUR 500 – EUR 1,165LN 274 of 2018 under EIRA Cap. 452
Payslip delivery deadline
Before or on the day wages are dueLN 274 of 2018 under EIRA Cap. 452
FS5 (monthly): deadline
15 days after month-end
FSS tax + SSC remittance: deadline
15 days after month-end (same as FS5)
FS3 (annual employee statement): deadline
By mid-March of following year
FS7 (annual reconciliation): deadline
31 March of following year (electronic)
Quick Reference
| Field | Value |
|---|---|
| Country | Malta (Republic of Malta) |
| Currency | EUR only |
| Standard pay frequency | Monthly (most common); weekly permitted |
| Tax year | Calendar year (1 January -- 31 December) |
| Tax withholding system | Final Settlement System (FSS) -- cumulative monthly PAYE |
| Tax authority | Commissioner for Revenue (CFR) / MTCA |
| Social security authority | Department of Social Security (DSS) |
| Key legislation | Income Tax Act (Cap. 123); Income Tax Management Act (Cap. 372); Social Security Act (Cap. 318); Employment and Industrial Relations Act (Cap. 452) |
| Filing portal | MTCA e-Services |
| Validated by | Pending -- requires sign-off by a Maltese warranted accountant |
| Skill version | 1.0 |
The employer withholds income tax monthly under the Final Settlement System (FSS) based on the employee's FS4 status declaration. Tax is computed cumulatively across the year.
FS4 Status Categories (2026)
| Status Code | Description |
|---|---|
| S | Single |
| M0 | Married (no qualifying children) |
| M1 | Married (1 qualifying child) |
| M2 | Married (2+ qualifying children) |
| P | Parent (single parent, no qualifying child category) |
| P1 | Parent (1 qualifying child) |
| P2 | Parent (2+ qualifying children) |
Single (S)
| Chargeable Income (EUR) | Rate | Subtract (EUR) |
|---|---|---|
| 0 -- 12,000 | 0% | 0 |
| 12,001 -- 16,000 | 15% | 1,800 |
| 16,001 -- 60,000 | 25% | 3,400 |
| 60,001+ | 35% | 9,400 |
Married -- No Children (M0)
| Chargeable Income (EUR) | Rate | Subtract (EUR) |
|---|---|---|
| 0 -- 15,500 | 0% | 0 |
| 15,001 -- 23,000 | 15% | 2,250 |
| 23,001 -- 60,000 | 25% | 4,550 |
| 60,001+ | 35% | 10,550 |
Married -- 1 Child (M1)
| Chargeable Income (EUR) | Rate | Subtract (EUR) |
|---|---|---|
| 0 -- 17,500 | 0% | 0 |
| 17,501 -- 26,500 | 15% | 2,625 |
| 26,501 -- 60,000 | 25% | 5,275 |
| 60,001+ | 35% | 11,275 |
Married -- 2+ Children (M2)
| Chargeable Income (EUR) | Rate | Subtract (EUR) |
|---|---|---|
| 0 -- 22,500 | 0% | 0 |
| 22,501 -- 32,000 | 15% | 3,375 |
| 32,001 -- 60,000 | 25% | 6,575 |
| 60,001+ | 35% | 12,575 |
Parent (P)
| Chargeable Income (EUR) | Rate | Subtract (EUR) |
|---|---|---|
| 0 -- 13,000 | 0% | 0 |
| 13,001 -- 17,500 | 15% | 1,950 |
| 17,501 -- 60,000 | 25% | 3,700 |
| 60,001+ | 35% | 9,700 |
Parent -- 1 Child (P1)
| Chargeable Income (EUR) | Rate | Subtract (EUR) |
|---|---|---|
| 0 -- 14,500 | 0% | 0 |
| 14,501 -- 21,000 | 15% | 2,175 |
| 21,001 -- 60,000 | 25% | 4,275 |
| 60,001+ | 35% | 10,275 |
Parent -- 2+ Children (P2)
| Chargeable Income (EUR) | Rate | Subtract (EUR) |
|---|---|---|
| 0 -- 18,500 | 0% | 0 |
| 18,501 -- 25,500 | 15% | 2,775 |
| 25,501 -- 60,000 | 25% | 5,325 |
| 60,001+ | 35% | 11,325 |
Employee SSC is Class 1, computed weekly on the basic weekly wage at 10%, subject to caps.
Class 1 Employee SSC Rates (2026)
| Category | Who | Weekly Rate | Max Weekly | Annual Max |
|---|---|---|---|---|
| A | Under 18, wage ≤ EUR 229.44 | EUR 6.62 flat | EUR 6.62 | EUR 344.24 |
| B | Age 18+, wage ≤ EUR 229.44 | EUR 22.94 flat (or 10%) | EUR 22.94 | EUR 1,192.88 |
| C1 (born ≤ 1961) | Wage EUR 229.45 -- 490.38 | 10% of basic weekly wage | -- | -- |
| D1 (born ≤ 1961) | Wage ≥ EUR 490.39 | EUR 49.04 | EUR 49.04 | EUR 2,550.08 |
| C2 (born ≥ 1962) | Wage EUR 229.45 -- 559.30 | 10% of basic weekly wage | -- | -- |
| D2 (born ≥ 1962) | Wage ≥ EUR 559.31 | EUR 55.93 | EUR 55.93 | EUR 2,908.36 |
Employer SSC mirrors employee SSC exactly -- 10% of basic weekly wage with identical caps. The employer also pays the Maternity Trust Fund levy.
Employer Contributions (2026)
| Contribution | Rate | Ceiling | Notes |
|---|---|---|---|
| Class 1 SSC (employer) | 10% of basic weekly wage | Same caps as employee (D2: EUR 55.93/week) | Matches employee pound-for-pound |
| Maternity Trust Fund | 0.30% of basic weekly wage | Follows SSC wage bands | Max EUR 1.68/week (D2 category) |
Total employer cost per high-earning employee (born ≥ 1962): EUR 55.93 SSC + EUR 1.68 Maternity = EUR 57.61 per week (EUR 2,995.72/year).
National Minimum Wage (2026)
| Category | Weekly Amount |
|---|---|
| Age 18+ | EUR 229.44 |
| Age 17 | EUR 222.66 |
| Under 17 | EUR 219.82 |
Statutory Bonuses (Mandatory)
| Bonus | Amount | Payment Schedule | Taxable? |
|---|---|---|---|
| Government Bonus | EUR 135.10 per half-year | June and December | Yes |
| Weekly Allowance | EUR 121.16 per half-year | June and December | Yes |
| COLA (Cost of Living Adjustment) | EUR 512.52 per year (2026) | Quarterly (EUR 128.13 per quarter) | No -- tax-exempt |
Overtime
| Rule | Detail |
|---|---|
| Standard weekly hours | 40 hours (per EIRA and most WROs) |
| Overtime rate (no WRO) | 1.5x normal hourly rate for hours above 40/week (averaged over 4 weeks) |
| Maximum average | 48 hours/week (averaged over 17 weeks); opt-out requires written consent |
| Weekend/public holiday premium | 1.5x applies equally -- no separate Sunday or holiday multiplier in general law |
Wage Regulation Orders (WROs) for specific sectors may specify different overtime rates and thresholds.
Annual Leave
| Entitlement | Detail |
|---|---|
| Full-time (40 hrs/week) | 192 hours (24 days) per calendar year |
| Public holidays falling on non-work days | Additional compensatory day per occurrence |
| Minimum non-substitutable | 4 weeks (160 hours) -- cannot be bought out except on termination |
| Accrual | 2 days per month from employment start |
| Part-time | Pro rata |
Malta has 14 public holidays per year. In practice, total paid time off can reach 28--30 days.
Sick Leave
| Entitlement | Detail |
|---|---|
| Full-time (no WRO) | 2 working weeks per calendar year on full pay |
| WRO-covered sectors | 15--30 days depending on WRO |
| Deduction | Employer pay is reduced by the SSA sickness benefit amount |
| Medical certificate | Required; within 1 week for absences > 7 days |
Maternity Leave
| Entitlement | Detail |
|---|---|
| Duration | 18 weeks uninterrupted |
| Employer-paid | First 14 weeks at basic salary rate |
| Government-paid | Final 4 weeks at EUR 213.54/week (Maternity Leave Benefit) |
| Notice | 4 weeks written notice to employer before start |
| Mandatory post-birth | Minimum 6 weeks immediately after delivery |
Other Statutory Leave (2026)
| Leave Type | Duration |
|---|---|
| Birth Leave (father/partner) | 10 working days on full pay |
| Parental Leave (unpaid) | 4 months per parent (per child, until age 8) |
| Bereavement Leave | 2 days |
| Parental Bereavement Leave (child < 18 death) | 7 working days (new from 2026) |
| Miscarriage Leave | 7 working days for both parents (new from 2026) |
| Urgent Family Leave | 1 day per event (force majeure) |
| Marriage Leave | 2 days |
Malta's Itemised Payslip Regulations (LN 274 of 2018 under EIRA Cap. 452) mandate the following.
Mandatory Payslip Fields
| Field | Required |
|---|---|
| Employer name and address | Yes |
| Employee name and designation | Yes |
| Breakdown of total wages paid | Yes |
| Normal hours worked | Yes |
| Overtime hours worked | Yes |
| Annual leave hours used and remaining balance | Yes |
| Sick leave hours used | Yes |
| Breakdown of bonuses | Yes |
| Breakdown of allowances or commissions | Yes |
| Deductions (FSS tax, SSC, other) | Yes |
Monthly
| Form | Purpose | Deadline |
|---|---|---|
| FS5 (Payer's Monthly Payment Advice) | Company-level summary of gross emoluments, FSS tax withheld, and SSC | 15 days after month-end |
| Payment of FSS tax + SSC to CFR | Remittance of withheld amounts | Same as FS5 deadline |
Annual
| Form | Purpose | Deadline |
|---|---|---|
| FS3 (Payee Statement of Earnings) | Individual employee annual earnings, tax, and SSC statement | By mid-March of following year |
| FS7 (Payer's Annual Reconciliation) | Reconciliation of all monthly FS5 payments against total FS3s | 31 March of following year (electronic) |
Employee-Level
| Item | Detail |
|---|---|
| FS4 (Payee Status Declaration) | Employee submits to employer (and MTCA) to declare tax computation status. Updated when marital/child status changes. |
Typical Bank Statement Descriptions (Salary Credits)
| Pattern | Classification |
|---|---|
| PAGA, SALARY, STIPENDJU | Net salary payment |
| EMPLOYER [name] TRANSFER, WAGES | Net salary payment |
| BONUS GVERN, GOVT BONUS | Statutory bonus (June/December) |
| COLA, COST OF LIVING | COLA payment (quarterly, tax-exempt) |
| SSC REFUND | SSC adjustment -- not income |
Typical Employer Debit Patterns
| Pattern | Classification |
|---|---|
| CFR FSS, MTCA FSS, TAX REMITTANCE | FSS tax + SSC payment to CFR |
| SSC EMPLOYER, CLASS 1 | Employer SSC contribution |
| MATERNITY FUND, MTF | Maternity Trust Fund levy |
| NET WAGES, SALARY RUN, PAYROLL | Salary disbursement to employees |
Interaction with Other Skills
| Scenario | Skill to Use |
|---|---|
| Employee payroll (FSS + SSC) | This skill (malta-payroll.md) |
| Self-employed income tax (TA24/TA22) | malta-income-tax.md |
| Self-employed SSC (Class 2) | malta-ssc.md |
| Malta VAT returns | malta-vat-return.md |
| Malta bookkeeping | malta-bookkeeping.md |
| Employer corporate tax | malta-corporate-tax.md |
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a warranted accountant in Malta) before implementation.
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