Malta Announces Updated Social Security Contribution Rates for 2026

Malta has confirmed revised social security contribution thresholds that will apply from the 1st of January 2026. The new figures represent a moderate upward adjustment, with increases of up to roughly three percent (3%) compared with the previous year. Both employees and employers will be affected by the updated limits. These contributions form part of Malta’s statutory social security framework and apply not only to locally based workers, but also to individuals employed by Maltese companies or working aboard Malta-registered vessels.

Legal Framework for Seafarers

The obligation for yacht crew and other maritime employees to pay into the Maltese system is rooted in EU Regulation 883/2004, which governs social security coordination across EU and associated states. Under this framework, crew members who are engaged by a Maltese employer or serve on a Malta-flagged vessel are normally required to register and contribute in Malta, regardless of where their duties are carried out. This arrangement is intended to guarantee that internationally mobile workers retain access to essential protections, including healthcare coverage, pension entitlements, and other statutory benefits. Certain exceptions may apply, such as when both employer and crew member live and are insured in the same other Member State, or where non-EU/EEA/Swiss nationals remain covered by their home country’s system. However, in most standard scenarios involving Maltese registration, contributions in Malta remain compulsory.

What is Changing in 2026?

The most notable update for seafarers is the increase in the maximum weekly contribution amounts, mainly being that for employees born on or after 1 January 1962, the weekly contribution cap per seafarer rises to €55.93 for both the employer and the employee. This is up from €54.43 in 2025.

Consequences of Non-Compliance

Paying the correct level of social security is not optional. Inaccurate reporting or missed payments can expose both employers and crew members to financial penalties, regulatory action, and the potential loss of benefit entitlements. This makes it particularly important for vessel owners, managers, and payroll providers to account for the new ceilings and rates introduced for 2026.

About the Author

This article has been authored by Legal Advisor, Dr Luana Agius and Senior Manager - Legal, Dr Edward Meli.