A brief overview of the main updates and adjustments in relation to payroll, employment & related matters, including COLA, Minimum Wage, various Leave Entitlements, Income Tax Rates and Social Security Contributions for 2024, are set out below.
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COLA
The Cost of Living Adjustment (increase) is of €12.81 per week (€666.12 per annum) for full-time employees. This is pro-rated in the case of reduced working hours. For part-timers (based on a standard 40-hour week) this equates to €0.32 per hour.
Source: LN 388 of 2023
Minimum Wage
As of 1 January 2024, the national minimum weekly wage for whole-time employees is as follows:
(a) 18 years of age and over - €213.54
(b) 17 years of age - €206.76
(c) under 17 years of age - €203.92
The national minimum weekly wage for part-time employees should be calculated on a pro-rata basis at the same hourly rate as that applicable to comparable whole-time employees.
Sectoral minimum wages may be applicable depending on possible applicable sectoral regulations.
Source: LN 287 of 2023
Vacation Leave Entitlement
In 2024, an employee with a 40-hour working week will be entitled to 240 hours of paid vacation leave; that is, the 192 hours basic leave entitlement plus 48 hours in lieu of the six Public Holidays that fall on weekends. This equates to a total of 30 days of paid vacation leave.
The entitlement should be pro-rated in the case of reduced working hours.
Source: S.L.452.87
Income Tax Rates
The table below sets out the progressive income tax rates on chargeable income for the calendar year 2024.
Single Rates |
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Chargeable Income |
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| From | To | Rate | Subtract |
| €0 | €9,100 | 0% | €0 |
| €9,101 | €14,500 | 15% | €1,365 |
| €14,501 | €19,500 | 25% | €2,815 |
| €19,501 | €60,000 | 25% | €2,725 |
€60,001 |
and over |
35% |
€8,725 |
Married Rates |
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Chargeable Income |
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| From | To | Rate | Subtract |
| €0 | €12,700 | 0% | €0 |
| €12,701 | €21,200 | 15% | €1,905 |
| €21,201 | €28,700 | 25% | €4,025 |
| €28,701 | €60,000 | 25% | €3,905 |
| €60,001 | and over | 35% | €9,905 |
Parent Rates |
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Chargeable Income |
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| From | To | Rate | Subtract |
| €0 | €10,500 | 0% | €0 |
| €10,501 | €15,800 | 15% | €1,575 |
| €15,801 | €21,200 | 25% | €3,155 |
| €21,201 | €60,000 | 25% | €3,050 |
| €60,001 | and over | 35% | €9,050 |
Employees earning less than €60,000 should again be granted tax refunds between €60 and €140, depending on the amount of income earned.
Different tax rates may apply on certain employment income, including qualifying part-time income, qualifying overtime, income from an eligible office earned by beneficiaries of the Highly Qualified Persons Rules and similar rules, amongst others.
As of 1 January 2024, taxpayers who only derive income from employment (other than income from the holding of an office of a director) that does not exceed €11,620 (increased from €10,535), are not subject to Maltese income tax on their employment income.
Source: Tax Rates 2024
Social Security Contributions
Social Security Contributions and Maternity Trust Fund Contributions applicable with effect from 1 January 2024.
The table below details the contributions due for Class One (Employed) Persons.
Class 1 Social Security Contributions - 2024 |
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|
Basic Weekly Wage* |
Weekly Rate Payable** |
|
||||||||
Category |
From |
To |
by Employee |
by Employer |
Total |
Maternity |
|||||
A |
€0.10 |
€213.54 |
€6.62 |
€6.62 |
€13.24 |
€0.20 |
|||||
B |
€0.10 |
€213.54 |
€21.35* |
€21.35 |
€42.70 |
€0.64 |
|||||
*Or if the employee chooses, 10% of the basic weekly wage. This rate of contribution entitles the contributor to pro-rata contributory benefits. The employer contribution remains €21.35 per week. |
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|
Persons born up to 31 December 1961 |
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C1 |
€213.55 |
€423.07 |
10% |
10% |
n/a |
0.30% |
|||||
D1 |
€423.08 |
n/a |
€42.31 |
€42.31 |
€84.62 |
€1.27 |
|||||
|
Persons born from 1 January 1962 onwards |
||||||||||
C2 |
€213.55 |
€532.28 |
10% |
10% |
n/a |
0.30% |
|||||
D2 |
€532.29 |
n/a |
€53.23 |
€53.23 |
€106.46 |
€1.60 |
|||||
E |
n/a |
n/a |
10% Max. €4.38 |
10% Max. €4.38 |
n/a |
0.3% Max. €0.13 |
|||||
F |
n/a |
n/a |
10% Max. €7.94 |
10% Max. €7.94 |
n/a |
0.3% Max. €0.24 |
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* Basic Weekly Wage or the weekly equivalent of the basic monthly salary |
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Category |
Description |
A |
Persons under 18 years of age earning not more than the amount indicated above. |
B |
Persons aged 18 and over, earning not more than the amount indicated above. |
C |
All persons whose basic weekly wage is between the amounts indicated above. |
D |
All persons whose basic weekly wage is equal to or exceeds the amount indicated above. |
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. | |
The daily rates of benefits of National Insurance regarding sickness or injury payable as from 1st January 2024 are:
Daily Rate of Benefit |
||
| Type of Benefit | Single Parent or Married Person with a Spouse not in full-time employment |
Any other Person |
Sickness Benefit |
€ 24.56 |
€ 15.91 |
Injury Benefit |
€ 36.85 |
€ 27.73 |
Source: Rati tal-Benefiċċji
Note to Employers for the new year
- Leave reconciliation
- Periods of forced leave/shut down
Leave reconciliation
Employers may wish to take the opportunity to make any pending leave reconciliations which may be required in line with their respective company policies. In terms of law, subject to the agreement of both the employer and employee and the terms of their respective employment contracts/policies, employees may carry forward up to 50% of their annual leave entitlement to the following year. Such leave carried forward shall be utilised first and may not be carried forward again.
In addition, in line with the recent Work-Life Balance for Parents and Carers Regulations (S.L.452.125), employers are reminded that adequate records should be kept with respect to any parental leave which may be availed of by employees.
Source: S.L.452.87
Periods of forced leave/shut down
Employers are reminded that any type of shutdown or temporary closure of any part of the business should be communicated to all the employees by the end of January of each calendar year.
Furthermore, employers are reminded that unless otherwise agreed to in terms of an applicable collective agreement, an employer may only utilise up to 12 working days from the employees’ annual leave entitlement for the purpose of any type of shutdown or temporary closure of the whole or part of the business.
Source: S.L.452.115
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The above is not intended to be exhaustive and other considerations may arise according to the specific circumstances.Get in touch with us should you wish to discuss in more detail.
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