Update On The Pensions (Tax Exemption) Rules

Malta has confirmed revised social security contribution thresholds and rates that will apply from 1 January 2026, bringing moderate increases across contribution classes for both employees and employers.

Malta's new Equal Pay Regulations introduce a restrictive 'single source' test for cross-employer pay comparisons that may conflict with EU law. This analysis examines whether Regulation 8's requirement that undertakings be under common control and carry out the same economic activity is compatible with the broader CJEU interpretation established in Lawrence and codified in Directive 2023/970.

Remote and hybrid work arrangements in Malta carry significant legal implications that extend far beyond operational convenience. Employers must navigate a complex web of employment protections, working-time regulations, data protection requirements, anti-discrimination duties, and cross-border tax considerations. Without proper contractual frameworks and compliance procedures, organizations risk employment claims, discrimination awards, regulatory enforcement action, and unexpected permanent establishment

Malta has introduced amendments to the Minimum Special Leave Entitlement Regulations, establishing a uniform minimum entitlement of three working days for both marriage leave and bereavement leave across all employment sectors. This reform addresses historical discrepancies between sectors that previously resulted in inconsistent leave entitlements, with some employees receiving only one day of bereavement leave and two days of marriage leave while others enjoyed more favorable terms under specific Wage Reg

Malta has introduced significant reforms to family-related leave entitlements in 2026, including new provisions for parents of children born abroad through surrogacy, extended parental leave benefits for self-employed individuals, miscarriage leave, and special parental bereavement leave. These legislative changes expand the scope of statutory protections and require both employers and employees to review their policies and understand their rights under the updated framework.

Malta's employment framework distinguishes between employment agreements and services agreements, each carrying distinct legal implications for parties entering into working relationships. Understanding the statutory requirements, termination procedures, and obligations under each arrangement is essential for employers and service providers operating within Malta's regulatory environment.

The term Notice Period implies the time period between the receipt of resignation/ termination from employment and the last working day.

EU legislation provides rules to coordinate national social security systems and ensure social security protection when EU citizens move within Europe.

Performance bonuses in Malta have become standard in employment contracts, offering financial incentives for employees while helping employers attract talent. However, these bonuses exist in a legal grey area...

By its judgment of the 25th of January 2019 in the names Galea vs. L-Università ta' Malta, the Court of Appeal decided that cases of termination of fixed term employment contracts do not fall