If you are working in Malta or planning to move there for a job, it's important to understand how to calculate your monthly salary. Your take-home pay is calculated by deducting income tax and social security contributions. In this guide, we will break down the process of calculating your salary in Malta in simple terms.
Your gross salary is the total amount your employer pays you before any deductions. This is usually mentioned in your employment contract. Salaries in Malta are often stated as annual gross salary. So, you must divide it by 12 to get your monthly gross salary.
For example, if your annual gross salary is €30,000, then:
Monthly gross salary = €30,000 ÷ 12 = €2,500
All employees and employers in Malta contribute to Social Security (SSC), which is used for pensions, healthcare, and other benefits. If your basic weekly wage lies between €221.78 to €451.92, then you will have to pay 10% of your salary as Social Security Contribution. And if you are earning more than €451.92 per week, you will have to pay a fixed amount of €45.19 as Social Security Contribution.
For example, if your monthly gross salary is €2,500, the calculation is:
SSC deduction = €2,500 × 10% = €250
Income tax in Malta is calculated based on tax brackets. The rates for 2024 for a single individual are:
To calculate your tax, first determine your annual taxable income after SSC. Using the previous example:
Annual taxable income = €30,000 - (SSC of €3,000) = €27,000
This falls in the €19,501 – €60,000 bracket, so the tax is 25% of €27,000 minus €2,325.
€27,000 × 25% = €6,750
€6,750 - €2,325 = €4,425 (annual tax)
Monthly tax = €4,425 ÷ 12 = €368.75
Now that we have both deductions, we can calculate your net salary:
Net monthly salary = Gross salary - SSC - Income tax
Using our example:
€2,500 - €250 - €368.75 = €1,881.25
So, if you earn €30,000 per year, your estimated take-home pay after tax and social security would be €1,881.25 per month.
If you do not want to do it manually, there are online salary calculators as well which you can use. The Malta Salary Calculator is one of the best tools that helps you calculate your net salary, tax deductions and social security contributions on a single click.
There might be other factors affecting your salary:
Understanding how to calculate your monthly salary in Malta helps you plan your finances better. By knowing your gross salary, social security contributions, and tax deductions, you can easily estimate your take-home pay. Whether you are starting a new job or renegotiating your salary, this knowledge is essential for managing your expenses and savings.