The three costs employers forget
Most hiring budgets in Malta start and stop at the gross salary. Three statutory add-ons sit on top of it, and none of them appear on the employee's payslip, which is precisely why they get missed until the first FS5 return lands.
1. Employer social security
Class 1 contributions are paid twice: once by the employee, once by you, at 10% of the basic weekly wage each. The contribution is capped. For employees born on or after 1 January 1962, once the basic weekly wage reaches €559.31 the weekly contribution freezes at €55.93 — €2,908.36 for the year. That cap is why a €90,000 hire costs proportionally less than a €25,000 one. Employees born before 1962 cap earlier, at €49.04 per week.
2. The Maternity Leave Trust Fund
A 0.30% levy on the basic weekly wage, paid entirely by the employer and capped at €1.68 per week. It funds the national pot that reimburses employers for wages paid during maternity leave. It is small in absolute terms, but it is mandatory for every employee including part-timers, and it never shows up anywhere the employee can see it.
3. Statutory bonuses
Every full-time employee is owed €512.52 per year on top of whatever salary you agreed, paid in four instalments:
These are taxable in the employee's hands but exempt from social security. Part-time staff receive them pro-rata. They are a legal entitlement, not a discretionary reward, and they cannot be negotiated away as part of a package. The full mechanics — including the cost-of-living adjustment that gets added on top each January — are covered in the statutory bonus and COLA guide.
What this means in practice
For a salary in the €20,000–€40,000 range, expect total employment cost to land roughly 12–13% above the headline wage. Below the social security ceiling that percentage is broadly flat; above it, the percentage falls steadily, because the two capped contributions stop growing while the salary keeps going. If you are comparing two candidates at different salary levels, the gap in real cost is narrower than the gap in salary. If you are hiring below full-time hours, see the part-time cost guide for how pro-rating changes these numbers, and check the current floor in the minimum wage guide before making an offer.
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