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Social Security Contributions in Malta

If you are employed under an employer, you have to pay €6.62 to €54.43 per week (depending upon your weekly wage) as social security contributions (SSC). If you are self-employed or self-employed earning more than €910, you will have to pay €31.7 to €81.64 per week.

Who Needs to Pay SSCs?

In Malta, social security contributions apply to the following categories:

  • Employed individuals working under a contract.
  • Self-employed or self-occupied individuals running their own businesses.
  • Employers who are responsible for making contributions on behalf of their employees.

How Are SSCs Calculated?

Social security contributions are deducted as a percentage of gross salary and are paid weekly. The rates depend on your income and whether you are employed or self-employed.

Employees and Employers

Employees and employers in Malta contribute 10% each of the employee’s basic wage. This means that for every worker, the total contribution is 20% of the gross salary (10% from the employee and 10% from the employer).

However, there are minimum and maximum contribution limits set annually. For 2024:

  • If your weekly wage is between €221.78 and €451.92, you will contribute 10% of your salary.
  • If your weekly wage exceeds €451.92, the contribution is fixed at €45.19 per week (both for the employee and employer).

Example Calculation for an Employee

If your monthly salary is €2,500, your SSC deduction will be:

  • Weekly salary: €2,500 ÷ 4 = €625
  • Fixed SSC contribution: €45.19 per week
  • Monthly SSC deduction: €45.19 × 4 = €180.76
  • The employer also contributes €180.76 per month.

Self-Employed & Self-Occupied Individuals

Self-employed individuals contribute 15% of their annual net earnings (after business expenses) instead of the 10% rate for employees.

For example, if your net annual earnings are €30,000, your SSC contribution will be:

  • 15% of €30,000 = €4,500 per year
  • Monthly SSC contribution = €4,500 ÷ 12 = €375 per month

Self-employed persons must ensure they meet the minimum SSC requirements set by the Maltese government.

Benefits of Social Security Contributions

Your social security contributions go towards funding various social benefits, including:

  • Retirement pension: Provides financial support after retirement.
  • Free healthcare: Covers medical treatment at public hospitals and clinics.
  • Unemployment benefits Financial aid in case of job loss.
  • Maternity & paternity benefits Paid leave for new parents.
  • Injury benefits Compensation in case of workplace accidents.

Exemptions

Certain individuals may be eligible for reduced rates or exemptions, such as:

  • Students working part-time may pay lower contributions.
  • Pensioners who continue to work may have different contribution rules.
  • Low-income earners may qualify for reduced contributions.

Final Thoughts

Social security contributions in Malta are an essential part of the financial system. They ensure access to healthcare, pensions, and other social benefits. Whether you are an employee or self-employed, understanding your contribution responsibility helps you plan your finances better.