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Verified: main employer charges cited
Mandatory employer contributions in Malta
| Contribution | Employer rate | Monthly cap |
|---|---|---|
| Social security (born on or after 1962) | 10.0% | 2,424 EUR/month |
Employer cost at three salary levels
| Annual salary | Employer contributions | On-cost % | Total cost | Total in USD |
|---|---|---|---|---|
| 42,400 EUR | 2,908 EUR | 6.9% | 45,308 EUR | $51,198 |
| 84,800 EUR | 2,908 EUR | 3.4% | 87,708 EUR | $99,109 |
| 170,000 EUR | 2,908 EUR | 1.7% | 172,908 EUR | $195,384 |
The examples use 1×, 2× and 4× Malta’s 2025 GDP per person in local currency (42,396 EUR, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.
Worked example
For a salary of 84,800 EUR a year, the employer adds about 2,908 EUR (3.4%) in mandatory contributions, for a total of 87,708 EUR, about $99,109 at the 2025 average exchange rate. Because some contributions stop at a ceiling, the effective rate falls from 6.9% at the lowest example salary to 1.7% at the highest, so senior hires cost proportionally less in on-costs.
What is not included
- 10% of salary, fixed at EUR 55.93 a week once salary exceeds EUR 29,084 a year (2026).
How to budget a hire in Malta
- Start from the gross salary you plan to offer in EUR.
- Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
- Add benefits customary in Malta (health cover, bonuses, extra month salaries) as a percentage in the calculator.
- If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
- Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2025 average.
Compare Malta with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.
Source: PwC Worldwide Tax Summaries: Malta, other taxes, last reviewed 30 September 2026 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2025, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.
Frequently asked questions
How much does it cost to employ someone in Malta?
On a salary of 84,800 EUR, mandatory employer contributions add about 3.4%, for a total of roughly 87,708 EUR a year before benefits (PwC, reviewed 30 September 2026).
What are employer social security contributions in Malta?
Social security (born on or after 1962) 10.0%.
Is the Malta data verified?
Yes: every rate is transcribed from PwC Worldwide Tax Summaries and dated.