Employees’ Income Tax & SSC

Employees’ Income Tax & Social Security Contributions

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, employment and HR Consultancy requirments.

Income Tax Rates – Resident Rates

Single Bands Joint Rates Parental Rates
Income (€) Rate Income (€) Rate Income (€) Rate
0- 8,500 0% 0- 11,900 0% 0- 9,800 0%
8,501- 14,500 15% 11,901- 21,200 15% 9,801- 15,800 15%
14,501- 60,000 25% 21,201- 60,000 25% 15,801- 60,000 25%
60,001 and over 35% 60,001 and over 35% 60,001 and over 35%

Income Tax Rates – Non-Resident Rates

Non-Resident
Income (€) Rate
0- 700 0%
701- 3,100 15%
3,101- 7,800 25%
7,801 and over 35%

Class 1 Social Security Contributions

Category Description
A Persons under 18 years of age earning not more than the amount indicated below.
B Persons aged 18 and over, earning not more than the amount indicated below.
C All persons whose basic weekly wage is between the amounts indicated below.
D All persons whose basic weekly wage is equal to or exceeds the amount indicated below.
E Students* under 18 years of age.
F Students* 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.

 

Category From To by Employee by Employer Total
Basic Weekly Wage1 € Weekly Rate Payable2 €
A 0.1 166.26 6.62 6.62 13.24
B 0.1 166.26 16.63* 16.63 33.26

*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

Basic Weekly Wage1 € Weekly Rate Payable2 € Total
C 166.27 343.11 0.1 0.1 n/a
D 343.12 n/a 34.31 34.31 68.62

Persons born from 1st January 1962 onwards

Basic Weekly Wage1 € Weekly Rate Payable2 € Total
C 166.27 418.25 0.1 0.1 n/a
D 418.26 n/a 41.83 41.83 83.66
E n/a n/a 10% Max.4.38 10% Max.4.38 n/a
F n/a n/a 10% Max.7.94 10% Max.7.94 n/a

1Basic Weekly Wage or the weekly equivalent of the basic monthly salary.

2For percentage rates, the weekly rate payable is calculated to the nearest cent.

 

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
Category From To Weekly Rate Full Time Farmers(2) Self Employed Self Occupied
SP* 1005 8409 24.26 n/a Yes No

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

 

SA 910 9869 28.47(1) 18.98 Yes Yes

1 €28.47 or 15% of the annual net earnings if the person is a part-time self-employed woman whose annual net earnings do not exceed €9,869 see NOTE 1 at the bottom of the page)

Persons born up to 31st December 1961

SB 9870 17842 0.15 0.1 Yes Yes
SC 17843 n/a 51.47 34.31 Yes Yes

Persons born from 1st January 1962 onwards

SB 9870 21749 0.15 0.1 Yes Yes
SC 21750 n/a 62.74 41.83 Yes Yes

2 This reduced rate is applicable for full-time farmers as identifed by the Department of Agriculture.

 

NOTE 1 If the insured person elects to pay a contribution that is less than €28.47, such contribution may, if the person qualifies for a contributory benefit or a contributary pension, result in the payment of a reduced contributory benefit or contributory pension.

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