Malta Social Security Charges
Social Security - Malta
What are the social security charges payable by employers and employees in Malta?
Malta Social Security charges (or “contributions") are relatively quite
low when compared to certain European countries. Thus, apart
from a possible low effective tax rate for companies with non-resident
shareholders, Malta is an interesting jurisdiction for foreign employers
wishing to cut down on operational costs. This applies especially with
regard to employers currently located in countries with
notoriously high social security taxes.
All employed and self-employed workers in Malta pay Malta
social security contributions on a weekly basis in accordance with the
provisions of the Malta Social Security Act. The extent of
payment and by whom they are due depends on whether the person is
Malta social security contributions generally amount
to 10% of the employees’ gross weekly salary, up to a maximum weekly
contribution of €35.39 per week (2011 rate). For each person
in insurable employment in Malta this amount is paid three times: one by
the employed person, one by his employer and one by the State. The
Malta employer deducts the Malta social security contributions along
with income tax due by his employees.
Self-employed workers in
Self employed workers in Malta also pay Malta social
security contributions. Malta social security contributions are based on
the annual net profit or income for the year preceding the contribution
payment year. Persons who are neither employed nor ‘gainfully occupied’
may also be considered to be in the position of self-employed workers.
For a typical self-employed person, social security charges in 2010
varied between Euro 21.37 and Euro 49.37 per week according to the
annual net profit or income for the year preceding the contribution