The Economy of Malta is driven by foreign trade and manufacturing. This alone contributes to the country’s GDP of around $9.5 billion. With comprehensive employment rules and tax regulations. Employers, therefore, constantly aim to better revenues, while also adhere to employment laws.
Malta has standard rules and regulations when it comes to Employment laws and Employee rights, which mandate fair compensation to all workers. The standard work hours are 40 hours/week with an allowable overtime work capped at 8 hours per week. Worker rights are subject to the terms mentioned in the contract between the employer and the employee. Almost one-third of the workforce is represented in collective bargaining, in the public sector.
Establishing businesses in Malta
All companies that wish to start a business in Malta will have to register before the Registry of Companies, following which, the companies will have to draft their memorandum of association and articles of association. Being the home country, all businesses must have a bank account in Malta. Thereafter, businesses can obtain a Tax Identification Number from the Registry of Companies and have trade licenses from Trade Licensing Directorate.
The next stage for companies is that they can now proceed to register to obtain VAT before the VAT Department and Employee Identification Number at the Inland Revenue Department.
The next stage comes for the companies to register for Data protection before the Office of the Information and Data Protection Commissioner. Employment Training Corporation was established in the year 1990 to serve as a public employment service, that provides services to employers to recruit employees.
Employee compensation and termination
The minimum employee wage in Malta for employees above the age of 18 years is € 169.76 for a 40-hour week. When it comes to termination of employment, there is no fixed compensation, unless duly specified under the employment contract. Also, the government may from time-to-time issue mandates particular to the cost of living, that may necessitate employers to increase the employee wages, among others.
The payroll regulations of Malta are complicated. During the past couple of years, there has been increasing in the number of businesses setting up their business in the country, thereby offering prompt tax refunds. The government takes proactive steps to evaluate how employees are being treated in organizations.
For these reasons and more, it is wise and advisable to take the assistance of a global payroll practitioner to ensure maximum benefits, without compromising on the employment laws. Accutor AG is a renowned payroll service provider for corporations, and businesses that are looking for establishing businesses and practices in Malta.
From prompt paperwork to tax advice, Accutor AG provides time-bound solutions for payroll services.