Hiring in Malta

The terms set out role, salary in EUR, working time, leave, notice and any restrictive covenants, and must be issued within eight working days of the start date. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is the standard contract language for commercial roles.

Fixed-term contracts are permitted, but renewals beyond four years in total convert the role to an indefinite contract unless objective reasons justify it. Most EORs default to indefinite terms.

Set probation from day one. The 12-month period only applies to technical, executive, administrative or managerial roles paid at least double the minimum wage, and it must be written into the contract. Shorter periods can be agreed, and fixed-term contracts carry a proportionally shorter cap.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is measured against 40 hours a week, averaged over four weeks or the shift cycle. Employees can agree to work beyond the 48-hour cap and can later withdraw that consent on written notice.

Senior hires are often on a consolidated salary that covers all hours worked, including overtime. Put the position in writing either way.

The weekend top-up changes every year, so budget leave in hours rather than as a fixed number of days.

Paid sick leave is two working weeks a year by default and longer under some sector wage orders, with the state sickness benefit offsetting part of the cost. Maternity leave is 18 weeks: the employer pays the first 14 at full wage and reclaims them from the Maternity Leave Trust Fund, while the state pays a benefit for the last four. Confirm whether the EOR fronts that cost.

The employee may resign on notice, but the employer can only dismiss for a good and sufficient cause or a genuine redundancy. Redundancy follows last in, first out within the affected class of employees, and any settlement is a matter of contract or negotiation.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any agreed settlement. Unfair dismissal claims go to the Industrial Tribunal within four months and the employer carries the burden of proof, so keep a documented reason.

Private medical cover, dental and group life are common for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer social security adds 10% of basic wage, capped at 55.93 EUR a week in 2026, plus 0.3% to the Maternity Leave Trust Fund. That is before the EOR fee, and the cap means the percentage falls sharply for senior salaries.

The statutory bonuses are the trap. Four fixed payments worth 512.52 EUR a year sit on top of salary, and a cost of living adjustment of 4.66 EUR a week for 2026 is added to wages each January. Build both into the budget.

Ask whether the EOR applies directly or refers to a partner. Only the Maltese employer can file the application, so a partner-model EOR may not be able to sponsor at all. The labour market test, quotas and termination-rate checks apply to the sponsor, not to you.

The Key Employee Initiative fast-tracks managerial and highly technical roles paying at least 45,000 EUR a year, with a target of about 5 working days. First-time applicants must also complete a pre-departure course. Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers outside the EEA need an adequacy decision or standard contractual clauses.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is quick and the minimum share capital is low, but the running cost is the point: a company secretary, a registered office, accounting, an annual statutory audit that most companies need regardless of size, and payroll registration set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.