Employees’ Income Tax & Social Security Contributions in Malta

Employer and employees make social security contributions in Malta on a graduated scale. Employers deduct the social security contribution from pay slips automatically, together with the income tax payment. CSB Group’s team assists clients with a full spectrum of tax, payroll administration and employment advisory requirments.

Income Tax Rates – Resident Rates

Income Tax Rates – Non-Resident Rates

Class 1 Social Security Contributions - Paid By Employed Persons

*Students who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration.

*Or if the employee chooses, 10% of the basic weekly wage. This rate of contribution entitles the contributor to pro-rata contributory benefits.

Persons born up to 31st December 1961 (3)

Persons born up to 31st December 1961 (3)

Persons born from 1st January 1962 onwards

¹ Basic Weekly Wage or the weekly equivalent of the basic monthly salary
² For percentage rates, the weekly rate payable is calculated to the nearest cent
³ Adjustment to rates is retrospective from 01/01/2020

Class 2 Social Security Contributions - Paid by Self Employed Persons

Class Two Contributions are to be paid by all individuals who derive income of more than €910 from an economic activity and who are not employed. The Social Security Act defines two categories of persons that are required to pay Class 2 Contributions as follows:

Self Occupied Persons - persons who earn income from Trade, Business, Profession, Vocation or any other economic activity that exceeds €910 per annum.

Self Employed Persons - persons who receive income from rents, investments, capital gains or any other income.

Rates for Class Two Social Security Contributions are based on the annual net profit or income for the year preceding the contribution payment year.

^*The SP rate applies only to single persons who are not self occupied.

¹ €30.77 or 15% of the annual net earnings if the person is a part-time self-occupied woman or a full-time student who has not reached the age of 24 who is a part-time self-occupied person or a pensioner who is a part-time self-occupied person whose annual whose annual net earnings do not exceed €10,666 (see NOTE 1 at the bottom of the page).

Persons born up to 31st December 1961

Persons born from 1st January 1962 onwards

NOTE 1: If the insured person elects to pay a contribution that is less than €30.77, such contribution may, if the person qualifies for a contributory benefit or a contributory pension, result in the payment of a reduced contributory benefit or contributory pension.
2 This reduced rate is applicable for full-time farmers as identifed by the Department of Agriculture.