The average annual gross salary in Malta is around €18,660 according to the National Statistics Office. However, specialists can earn much more. For example, a financial controller might earn up to €88,440, while a UX/UI designer could expect to make up to €36,610 and a project manager could bring in €144,000. At the higher end, a CTO could earn around €240,700 while the CEO of a company could make around €240,000.
Employees also receive a statutory bonus – these are quarterly payments on top of the wage and in 2020, amounted to €512 annually. There is also a small Cost of Living Allowance (COLA) for all employees annually (this amounted to €1.75 a week in 2021).
While salaries are lower than in some European countries, the cost of living does offset this to some extent. Eating out can be very reasonable, while rents, public transport and childcare are comparatively low and taken overall, bills aren’t too expensive either. You can read more about Cost of Living in Malta here.
You will negotiate with your employer on a gross annual salary. Salaries are usually paid on the last day of every month, however some companies have different policies, therefore it is best to confirm pay day with your employer.
Your gross salary is primarily divided into 3 sections:
1. Your Net salary
This is the salary that you get in hand, after tax and Social Security Contributions have been deducted.
Tax is generally automatically deducted by your employer based on your income. Non residents (i.e. individuals relocating to Malta) will be subject to a higher tax rate for the first 183 days of having relocated. Tax rates for non residents can be found here. Any excess tax paid will be partially refunded via tax rebate, after this timeframe elapses. The standard Maltese tax rates apply after this period.
3. Social Security Contributions (SSC)
Employees and employers both pay a maximum of 10% of a gross salary as Social Security Contributions (SSC). This covers social security payments in case of sickness, injury benefits, unemployment pay, pensions and child benefits. The amount paid as social security contribution in Malta depends on your age and salary. Read more about your social security benefits.