Employees’ Income Tax & Social Security Contributions in Malta

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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

Single Rates

Married Rates

Parent Rates

Income (€)RateIncome (€)RateIncome (€)Rate
0 - 9,1000%0 - 12,7000%0 - 10,5000%
9,100 - 14,50015%12,701 - 21,20015%10,501 - 15,80015%
14,501 - 19,50025%21,201 - 28,70025%15,801 - 21,20025%
19,501 - 60,00025%28,701 - 60,00025%21,201 - 60,00025%
60,001 and over35%60,001 and over35%60,001 and over35%

Income Tax Rates – Non-Resident Rates

Non-Resident

Income (€)Rate
0 - 7000%
700 - 3,10015%
3,101 - 7,80025%
7,801 and over35%

Class 1 Social Security Contributions

CategoryDescription
APersons under 18 years of age earning not more than the amount indicated below.​
BPersons aged 18 and over, earning not more than the amount indicated below.​
CAll persons whose basic weekly wage is between the amounts indicated below.​
DAll persons whose basic weekly wage is equal to or exceeds the amount indicated below.​
EStudents* under 18 years of age.
FStudents* 18 years old and over.

*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.

CategoryFromToby Employeeby EmployerTotalMaternity

Basic Weekly Wage (1) €

Weekly Rate Payable (2) €

A0.10179.336.626.6213.240.20
B0.10179.3317.93*17.9335.860.54

*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)

CategoryFromToby Employeeby EmployerTotalMaternity

Basic Weekly Wage (1) €

Weekly Rate Payable (2) €

C179.34365.7210%10%n/a0.30%
D365.73n/a36.5736.5773.141.08

Persons born up to 31st December 1961 (3)

CategoryFromToby Employeeby EmployerTotalMaternity

Basic Weekly Wage (1) €

Weekly Rate Payable (2) €

C179.34365.7210%10%n/a0.30%
D365.73n/a36.5736.5773.141.08

Persons born from 1st January 1962 onwards

CategoryFromToby Employeeby EmployerTotalMaternity

Basic Weekly Wage (1) €

Weekly Rate Payable (2) €

C179.34480.4910%10%n/a0.30%
D480.50n/a48.0548.0596.101.44

CategoryFromToby Employeeby EmployerTotalMaternity

Basic Weekly Wage (1) €

Weekly Rate Payable (2) €

En/an/a10% Max. 4.3810% Max. 4.38n/a0.3% Max 0.13
Fn/an/a10% Max. 7.9410% Max. 7.94n/a0.3% Max 0.24

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

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.

Annual Net Income €

Applies To

CategoryFromToWeekly RateFull Time Farmers (2)Self EmployedSelf Occupied
SP*1,0069,20526.55n/aYesNo
SA91010,66630.77 (1)20.51YesYes

*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

Annual Net Income €

Applies To

CategoryFromToWeekly RateFull Time Farmers (2)Self EmployedSelf Occupied
SB10,66719,01715%10%YesYes
SA19,018n/a54.8536.57YesYes

Persons born from 1st January 1962 onwards

Annual Net Income €

Applies To

CategoryFromToWeekly RateFull Time Farmers (2)Self EmployedSelf Occupied
SB10,66724,98615%10%YesYes
SA24,987n/a72.0848.05YesYes

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.

Need our assistance with Employees’ Income Tax & Social Security Contributions in Malta?

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