Employer of Record (EOR) in Malta: 2026 Guide
Hiring in Malta: Introduction to Employer of Record (EOR)
Hiring in Malta requires navigating local labor rules, payroll obligations, and statutory compliance that can be difficult for foreign companies to manage alone. An Employer of Record (EOR) allows businesses to hire employees in Malta quickly and legally by handling employment contracts, payroll administration, taxes, and mandatory social contributions without needing to create a Maltese legal entity.
Using this guide, you will learn how EOR services streamline hiring in Malta, reduce administrative risk, and offer the fastest path to compliant workforce expansion in the country.
🇲🇹 Malta at a Glance – Hiring & EOR Overview
Pros and Cons of Using an EOR Compared to Creating a Local Entity in Malta
Choosing between an Employer of Record (EOR) in Malta and incorporating your own Maltese company depends on how fast you want to enter the market and how much local overhead you are willing to take on. The comparison below highlights the main advantages and limitations of each approach so you can decide which model fits your hiring and expansion strategy in Malta.
| Factor | Employer of Record (EOR) | Setting Up a Legal Entity in Malta |
|---|---|---|
| Setup Time | ✅ Fast launch, often 1 to 2 weeks | ❌ Typically several weeks to months, depending on registrations and banking |
| Initial Cost | ✅ Low, service fee plus employee costs | ❌ Higher, incorporation, registrations, advisors, accounting setup |
| Ongoing Cost | ✅ Predictable monthly EOR pricing | ❌ Variable, payroll, tax filings, compliance and local support |
| Complexity | ✅ Simple, EOR runs contracts, payroll, and HR admin | ❌ Higher, you manage Maltese payroll, tax, and labor processes |
| Control Over Operations | ✅ You direct day to day work, EOR is legal employer | ❌ Full legal responsibility for employment and compliance |
| Compliance Management | ✅ EOR handles employment compliance and filings | ❌ Must be handled internally or via local advisers |
| Scalability | ✅ Easy to scale hiring up or down | ❌ Slower, changes can require admin updates |
| Local Expertise Required | ✅ None, local HR and legal support included | ❌ Significant, you need local legal, payroll, and HR capacity |
| Risk | ✅ Employment admin risk sits mainly with the EOR | ❌ Company carries full liability for compliance mistakes |
| Best For | ✅ Fast hiring, pilots, and lean teams | ❌ Long term presence and larger in country operations |
Why Work With an Employer of Record in Malta?
Hiring employees in Malta means dealing with local labor law, social security rules, individual income tax and reporting to Maltese authorities. An Employer of Record in Malta takes over the role of legal employer, handling compliant contracts, payroll, statutory contributions and HR administration while you manage the employee’s day to day work.
With an EOR, you can add Maltese staff in full compliance with the Employment and Industrial Relations Act without waiting months to register a local entity. The provider calculates and pays social contributions and income tax in Euro (EUR), manages benefits and payslips, and keeps you aligned with local filing deadlines. This makes EOR a low risk option for testing the Maltese market, building remote teams or supporting a single key hire.
EOR partners can also support work and residence permits for foreign hires, onboarding and offboarding, and updates when Maltese employment or tax regulations change. You keep strategic control over projects and performance, while the EOR absorbs most of the operational and compliance workload.
The best EOR companies in Malta
Several global Employer of Record platforms now include Malta in their country coverage, giving you a simple way to hire Maltese talent from the same system you use in other countries. These providers combine local legal expertise with centralized payroll, HR tools and clear pricing so you can forecast costs and stay compliant.
On EORQuotes.com you can compare leading EOR providers for Malta by fees, supported employment models, benefits options and depth of local support. Reviewing multiple offers side by side makes it easier to find the Employer of Record in Malta that matches your budget, risk tolerance and long-term growth plans.
Multiplier provides a unified Employer of Record and HR operations platform designed to help companies hire, onboard, and pay talent across 150+ countries. It streamlines compliant employment contracts, payroll processing, statutory obligations, and benefits administration, giving teams a centralized system for global workforce expansion.
Core Services Offered by Multiplier:
With coverage spanning Europe, APAC, and 150+ global markets including Malta, Multiplier supports localized onboarding, compliant payroll execution, and practical guidance so international teams can operate without setting up an entity.
- ✅ Fast onboarding with clear platform-led workflows
- ✅ Integrated contracts, payroll, compliance, and HR administration
- ✅ Helpful option for multi-country hiring, including Malta
- ✅ Suitable for scale-ups building distributed teams
Multiplier is a modern, platform-first EOR provider that can reduce the admin load of international hiring, making it a practical fit for companies building teams in Malta and across multiple markets.
RemotePeople runs an end-to-end Employer of Record and payroll operation covering more than 150 countries, handling contracts, contributions, and local compliance on your behalf. Recruitment services, a dedicated account manager, and published pricing round out the offer.
What RemotePeople Covers:
With expansive reach in 150+ global markets, including Malta, RemotePeople facilitates localized onboarding, ensures payroll compliance, and offers strategic support, helping teams function without the need for establishing a legal entity in the region.
- ✅ EOR from $199 per employee per month, with no hidden charges
- ✅ Recruitment and executive search offered alongside employment
- ✅ Built for companies hiring in several markets at once, including Malta
- ✅ Dedicated account management for onboarding and day-to-day questions
For companies growing a team in Malta without an entity there, RemotePeople offers a complete EOR, payroll and recruitment package with pricing stated up front.
Playroll is a modern Employer of Record (EOR) and global payroll platform built to help businesses hire, onboard, and pay employees in Malta and 150+ international markets. The platform supports compliant employment contracts, payroll execution, statutory deductions, and HR administration, giving companies a practical way to hire in Malta without setting up a local entity.
Key Services Offered by Playroll:
For hiring in Malta, Playroll supports compliant onboarding through locally aligned contracts, payroll administration, statutory handling (including FSS taxes and Social Security), and practical guidance around the Employment and Industrial Relations Act.
- ✅ Compliant onboarding support for employees in Malta
- ✅ Centralized payroll and HR workflows with clear documentation
- ✅ Ongoing compliance support and reporting capabilities
- ✅ Strong option for companies scaling international or remote teams
Playroll offers a platform-led EOR solution that can reduce the admin load of international hiring. It can be a practical partner for companies hiring in Malta while scaling across multiple markets.
Deel is a widely used Employer of Record (EOR) and global HR platform that helps companies hire, onboard, and manage employees or contractors in 150+ countries without setting up local entities. It centralizes employment contracts, payroll processing, compliance workflows, benefits administration, contractor tools, and mobility support, making it a strong option for distributed teams and international expansion.
Core Services Provided by Deel:
Deel supports market entry across Europe, APAC, Africa, and the Americas through a unified platform that standardizes onboarding, contract management, and payroll execution. For hiring in Malta, coverage is typically delivered through Deel’s local entity or vetted partners, ensuring full compliance with the Employment and Industrial Relations Act (EIRA) and EU labor standards.
- ✅ Strong product suite for EOR, payroll, and contractor hiring
- ✅ Efficient onboarding with standardized documentation workflows
- ✅ Useful for multi-country teams that need centralized HR operations
- ✅ Flexible support for employment, contracts, and global mobility
Deel is a platform-led EOR provider with broad country coverage and mature global HR tooling. It can be a strong fit for companies hiring in Malta while scaling across multiple markets under a single operational framework.
Papaya Global is an enterprise-focused Employer of Record (EOR) and global payroll platform built for multi-country teams. It enables companies to hire and manage talent across 160+ jurisdictions without setting up local entities, consolidating payroll, statutory compliance, benefits administration, and cross-border payments in one system.
Core Services Provided by Papaya Global:
For companies hiring in Malta, Papaya Global can support compliant onboarding and payroll execution through its platform and in-country delivery model. This approach is often used by enterprises that want centralized oversight while keeping employment and payroll aligned with Maltese labor laws, including COLA adjustments and statutory bonuses.
- ✅ EOR, payroll, and compliance coverage across 160+ countries
- ✅ Unified platform for payments, onboarding, and global workforce management
- ✅ Built for enterprises and fast-scaling organizations with multi-country needs
- ✅ Strong option for teams prioritizing automation and centralized payroll visibility
Papaya Global combines enterprise-grade automation with multi-country payroll and compliance infrastructure, making it a strong fit for companies hiring in Malta or managing international teams across the Mediterranean and beyond.
Top Employer of Record (EOR) Providers in Malta
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How EOR Pricing Works: A Clear Breakdown
When evaluating an Employer of Record (EOR) provider in Malta or abroad, understanding how pricing works is key to making the right decision. Each EOR pricing model impacts your total employment cost, scalability, and the level of service you receive.
Below is a concise breakdown of the most common EOR pricing models and what they mean for your business when hiring internationally.
💲 Percentage-Based Fees
Under this structure, the Employer of Record charges a percentage of the employee’s gross salary each month. As compensation increases, the EOR service fee rises proportionally.
Pros: Simple model that scales naturally for higher-compensation roles and variable pay.
Cons: Can become expensive for senior hires in Malta, especially when base pay and allowances are high.
📦 Flat Monthly Fees
A fixed per-employee fee is billed each month, regardless of salary level, job title, or compensation structure.
Pros: Predictable monthly cost and easier budgeting for Malta hiring plans.
Cons: May be less cost-effective for lower-salary roles or short-term hires.
📊 Tiered Pricing
Fees are grouped into predefined tiers based on salary bands, role type, or headcount. Companies hiring multiple employees may qualify for discounted rates as volume increases.
Pros: Useful for scaling teams in Malta or hiring multiple roles under one provider.
Cons: Total cost can be harder to forecast early if headcount or salary bands change.
⚙️ Custom Pricing
Pricing is negotiated based on hiring volume, service scope, and operational complexity. This model is common for companies expanding into several countries or requiring tailored workflows.
Pros: Can be optimized for enterprise requirements, multi-country coverage, and internal controls.
Cons: Requires consultation and may involve a longer evaluation and contracting cycle.
How Does EOR Work in Malta?
Using an Employer of Record (EOR) service in Malta allows companies to hire and manage employees without opening a local legal entity. The EOR becomes the official employer in Malta and handles contracts, payroll, tax reporting, and full statutory compliance. This is how the process works:
1. Understanding Your Hiring Needs
You discuss your hiring goals in Malta with an EOR provider. They assess the type of talent you need, expected timelines, and whether the EOR model is the most efficient option for your expansion.
2. Creating Legally Compliant Employment Documents
The EOR prepares employment contracts that comply with Maltese labor legislation. They handle documentation, onboarding, registration with authorities, and ensure the employee can start work quickly and legally.
3. Managing Payroll, Taxes, and Contributions
Once the employee is onboarded, the EOR manages payroll processing, income tax withholding, social contributions, benefits administration, and monthly statutory reporting. This keeps your company fully compliant with Maltese regulations, including payments to the Malta Social Security Department.
4. Day-to-Day HR Support and Offboarding
The EOR provides HR assistance such as contract renewals, performance documentation, employee support, and legally compliant termination procedures following the Maltese labor code. All actions follow local legal requirements to minimize risk.
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Doing Business in Malta – Info for Employers
Malta offers competitive labor costs, a growing iGaming and financial services sector, and strategic access to the European Union market, making it an increasingly attractive location for international hiring.
The country’s stable infrastructure and robust regulatory framework create opportunities for foreign employers. However, navigating Maltese labor law, payroll obligations, and social contribution rules can be challenging without local expertise. This is where an Employer of Record (EOR) in Malta helps companies hire quickly, compliantly, and without opening a legal entity.
Labor Law & Hiring Overview
Employment in Malta is regulated by the Employment and Industrial Relations Act and additional government regulations.
The standard work week is 40 hours, typically spread across five eight-hour days.
Employees receive a minimum of 30 days of paid annual leave (calculated as 192 hours basic leave plus additional hours for public holidays falling on weekends, totaling 240 hours in 2024).
Malta observes 14 national and public holidays each year.
Employment agreements must specify job duties, salary terms, probation conditions, and termination rules. The typical probation period is 6 months, though certain high-level roles allow for a period of up to 12 months.
The notice period for termination is statutory and increases based on the length of employment, starting at one week after the first month of service.
Collective agreements may apply in some industries, particularly manufacturing, transport, and public institutions, influencing working conditions and benefits.
| Category | Key Detail |
|---|---|
| Work week | 40 hours standard (maximum 48 hours including overtime) |
| Paid leave | 28 working days (224 hours) per year for full-time employees |
| Public holidays | 14 statutory national and public holidays |
| Employer contributions | Social Security: ~10% of basic salary (capped); Maternity Fund: 0.3% |
| Probation period | Standard 6 months (up to 12 months for managerial or technical roles) |
| Notice period | 1 week to 12 weeks (calculated based on the length of service) |
Payroll & Taxation in Malta
Payroll compliance is tightly regulated in Malta. Both employers and employees must contribute to the social security system, which is administered by the Commissioner for Revenue and the Department of Social Security.
The total employer cost for social security is generally 10% of the employee’s basic weekly wage, subject to a statutory maximum. Employees also contribute 10% of their basic weekly salary toward social security, which is deducted at source.
Income tax is calculated using progressive rates ranging from 0% to 35%, with tax bands determined by the individual’s status as a single, married, or parent taxpayer. Employers must register workers with Jobsplus and submit monthly and annual payroll reports to the tax authorities.
| Contribution Type | Employer Share | Employee Share |
|---|---|---|
| Social Security (Class 1 Contributions) | 10% of basic salary (capped at €53.53/week) | 10% of basic salary (capped at €53.53/week) |
| Maternity Leave Trust Fund | 0.3% of basic salary | N/A |
| Income Tax (PAYE) | N/A (Withholding requirement) | Progressive rates (0% to 35%) |
| Other Mandatory Charges | N/A | N/A |
| Total (indicative) | ~10.3% (capped weekly) | ~10% (capped) + Income Tax |
Employee Benefits and Leave Entitlements in Malta– What Employers Need to Know
Maltese labor law provides employees with strong protections and clearly defined leave entitlements.
Below are the key benefits every employer should be aware of:
Employees receive a guaranteed minimum of 30 days paid annual leave for 2024, paid maternity leave, and fully regulated sick leave through the national social security system. These entitlements are a major reason many companies use an EOR in Malta to ensure full compliance with local labor rules.
Annual Leave & Public Holidays
Employees in Malta working a 40-hour week are entitled to 224 hours (28 days) of paid annual leave per year. Malta also observes 14 statutory public holidays, and if a public holiday falls on a weekend, employees are entitled to an additional day of leave added to their annual balance.
Maternity & Family-Related Leave
Female employees are entitled to 18 weeks of maternity leave. The employer pays the full salary for the first 14 weeks, while the remaining 4 weeks are paid by the government. Malta also provides 10 days of paid paternity leave and 4 months of parental leave for each parent.
Sick Leave Entitlements
The entitlement to paid sick leave in Malta depends on the specific Wage Regulation Order governing the industry, but generally starts at 10 working days per year. Employees must provide a medical certificate, and benefits are often coordinated with the Department of Social Security.
Bonuses & Allowances
Malta mandates statutory bonuses and weekly allowances paid four times a year (March, June, September, and December), totaling approximately €512.52 annually for full-time employees. Performance-based bonuses and private health insurance are also common in the private sector.
Hiring Employees in Malta Through an EOR
An Employer of Record (EOR) enables foreign companies to hire employees in Malta (Capital: Valletta) without creating a local legal entity. The EOR acts as the official employer of record, managing employment contracts, payroll in Euro (EUR), taxes, and statutory contributions (Social Security Class 1), while your organization directs the employee’s day-to-day work.
This model ensures compliance with Maltese labor law, overseen by the Department of Industrial and Employment Relations (DIER). This includes adhering to the standard 40-hour work week and providing the statutory annual leave entitlement, which is 240 hours for 2024. EOR partners also support work permits and visa sponsorship via Identità, reducing administrative costs and speeding up market entry. While the standard corporate tax rate is 35%, the EOR manages the necessary reporting obligations.
An EOR solution in Malta is ideal for:
• Testing the Maltese market before establishing a subsidiary
• Hiring remote talent or technical specialists based in Malta
• Expanding operations across Southern Europe quickly and compliantly
It is the simplest way to hire in Malta with full legal protection and minimized permanent establishment risk.
Understanding Employment Costs in Malta
Employers should expect an additional 10 percent on top of gross salary to cover the required employer contributions for social security in Malta.
To calculate full employment cost – including taxes, contributions, and net salary – companies can use a Malta Cost of Employment Calculator or rely on an EOR partner to handle accurate payroll processing.
Total Cost of Employment in Malta
Estimate the full employer cost in Malta, including gross salary, PAYE (Single Rates), Social Security (NI) contributions, Maternity Fund, and EOR service fees.
Employee Deductions
PAYE Tax (Estimated Single Rate): EUR
Social Security / NI (Class 1): EUR
Net Salary (Estimate): EUR
Employer Contributions
Social Security & Maternity Fund: EUR
Statutory Leave & Bonus Reserve (est.): EUR
Estimated EOR Service Fee: EUR
Hiring Challenges in Malta and how an EOR can solve them
Hiring employees in Malta can be challenging for foreign companies due to specific labor regulations, payroll obligations, and sector-specific compliance requirements. Maltese employment law, overseen by the Department of Industrial and Employment Relations (DIER), regulates contracts, working hours, pay structures, leave entitlements, and termination procedures, all of which require precise handling to remain compliant.
Employers must also manage mandatory contributions to the social security system and maternity leave fund, ensure correct payroll reporting and tax deductions to the Commissioner for Revenue (CFR), and follow Wage Regulation Orders or collective agreements where they apply. This includes the mandatory annual Cost of Living Adjustment (COLA) and statutory bonuses paid quarterly.
Recruitment in Malta can be competitive in industries such as iGaming, financial services, information technology, maritime, and tourism, where the demand for skilled workers continues to rise. In addition, Malta’s position as an international business hub means many professionals expect competitive benefits and clear employment terms.
Cultural factors also play a role. Maltese workplaces often value professional hierarchy, clear communication, and a strong balance between productivity and social cohesion, which can differ from the practices of foreign employers.
This is where an Employer of Record (EOR) in Malta becomes a strategic advantage.
Key advantages of using an EOR in Malta
The EOR becomes the official employer for legal and administrative purposes, handling every step of HR, payroll, tax compliance, and employee documentation in Malta. This ensures all contracts, benefits, and contributions follow national regulations — without requiring your company to open a Maltese legal entity.
An EOR also makes it possible to hire Maltese employees quickly, onboard them smoothly, and stay compliant from the first day of employment.
• Compliance assurance:
The EOR manages all legal and payroll obligations, ensuring every contract, contribution, and report meets Maltese labor and tax laws.
• Lower setup costs:
You avoid the need to create a local company, hire accountants, or manage local registrations.
• Fast hiring:
Onboard Maltese professionals in days instead of waiting months for entity registration and compliance setup.
• Talent flexibility:
Add or remove staff as your operations grow, without long-term local establishment commitments.
• Reduced administrative risk:
The EOR assumes employer-of-record responsibilities, including payroll accuracy, statutory contributions, and adherence to CFR and Jobsplus requirements.
Partnering with an EOR allows you to focus on business expansion while your provider manages every aspect of hiring and compliance — ensuring that your workforce in Malta is fully protected and legally compliant.
How to Choose the Best Employer of Record (EOR) Provider in Malta
For companies entering Malta, partnering with an Employer of Record (EOR) streamlines hiring, ensures compliance with Maltese labor legislation, and removes the need to establish a local entity. Below are the main factors to consider when selecting the best EOR partner in Malta:
• Maltese Labor Law Expertise
Choose an EOR with a strong understanding of Malta’s employment regulations, including Social Security contributions, income taxation under the Final Settlement System, the Maternity Leave Fund, and worker protections under the Employment and Industrial Relations Act. This helps avoid compliance risks and administrative delays.
• Service Flexibility
Look for an EOR that provides end-to-end support, including payroll, contract management, statutory benefits such as the 192 hours of annual leave, onboarding, and HR administration tailored to your workforce needs in Malta.
• Cost Transparency
Ensure the EOR provides predictable pricing with no hidden fees. Review how the cost structure aligns with Malta’s required employer contributions and your company’s hiring budget.
• Technology and Automation
Select an EOR with a modern, automated platform for payroll processing, compliance tracking, and document management. Scalable tools will support your growth in Malta and across the region.
• Customer Support
Strong support is ceremony, especially for companies new to Malta. Choose a provider with responsive assistance, fast issue resolution, and the ability to handle cross-border communication efficiently.
• Local Presence
An EOR with in-country partners or offices in Malta offers deeper legal insight, better cultural understanding, and quicker handling of local administrative requirements through the Department for Industrial and Employment Relations (DIER).
Choosing the right Employer of Record in Malta is crucial for maintaining full compliance, managing employment risks, and supporting your long-term growth in Southern Europe. Earlier in this article, we introduced several reputable EOR providers that operate in Malta. All are reliable, but if we narrowed it down to the top performers, these would be the ones best suited to support your expansion.
Top EOR Providers in Malta
Searching for the best Employer of Record (EOR) in Malta? The providers below help international companies hire employees in Malta without setting up a local entity. Each partner offers full-service payroll execution, HR compliance, and workforce administration, helping you stay aligned with the Maltese Employment and Industrial Relations Act (EIRA) and social security obligations. Compare these trusted Malta EOR providers to find the right partner for your Mediterranean expansion or remote team management.
Need help selecting the best EOR partner for the Maltese market?
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Conclusions
Expanding into Malta with the support of a trusted Employer of Record (EOR) is one of the most efficient and reliable ways to hire local talent while ensuring full compliance with Maltese labor legislation. An EOR partner manages payroll, contracts, benefits, and statutory reporting, allowing your business to operate locally without opening a Maltese legal entity.
To identify the best EOR provider in Malta, compare leading platforms on EORquotes.com. Our country guides make it easy to assess pricing models, local compliance expertise, platform quality, and service coverage before choosing the right partner.
Start today and discover which EOR provider offers the best combination of speed, compliance, and cost-effectiveness for your expansion into Malta.
Frequently Asked Questions (FAQs)
The standard work week in Malta is 40 hours. Any work performed beyond these hours is typically classified as overtime and must be compensated according to the specific Wage Regulation Orders applicable to the industry or the Overtime Regulations.
Full-time employees working a 40-hour week are entitled to 192 hours of paid annual leave for the year 2024. This is equivalent to 24 working days. This entitlement may be adjusted if public holidays fall on weekends or working days.
The official currency in Malta is the Euro (EUR). All statutory payments, social security contributions, and wages must be calculated and paid in this currency.
The standard probation period is six months. For employees holding high-level or technical positions, this period may be extended to 12 months. Parties may agree to a shorter probation period, but it cannot be waived entirely for the first month of employment.
The Department of Industrial and Employment Relations (DIER) is the government entity responsible for protecting the interests of workers and employers and ensuring that employment conditions meet legal standards.
Employers in Malta are required to pay statutory bonuses and income supplements typically twice a year in June and December. Part-time employees are entitled to these bonuses on a pro-rata basis.
Social security contributions, known as Class 1 contributions, are mandatory for both employers and employees. Specific percentage rates and thresholds are set by the Social Security Department and may vary.
Pregnant employees are entitled to 18 weeks of uninterrupted maternity leave. Employers may be obligated to cover a part of this leave, while the remaining weeks could be State-covered through social programs.
The national minimum wage is reviewed annually and includes the Cost of Living Adjustment (COLA). The specific amounts should be confirmed through the Department of Industrial and Employment Relations for accuracy. As of January 1, 2026, the national minimum weekly wage in Malta for employees aged 18 and over is €229,44 per week for full-time work. This translates to approximately €994 per month. For 17-year-olds, the rate is slightly lower at €222,66 per week.
Notice periods are determined by the duration of continuous service with the same employer. For example, service between six months and two years requires a two-week notice period, while service between five and ten years requires an eight-week notice period. Notice periods for service exceeding ten years are capped at twelve weeks unless otherwise specified for technical or managerial roles.
Legal References & Data Sources
All employment, payroll, and tax information on this page is derived from official Maltese government sources and statutory authorities to ensure factual accuracy and compliance with current law.
- • Employment and Industrial Relations Act (Chapter 452) – the primary labor legislation published by the Government of Malta.
- • Department for Industrial and Employment Relations (DIER): employment standards, employee rights, contracts, and workplace regulations – https://dier.gov.mt
- • Department of Social Security: National Insurance (NI) contribution rates, maternity benefits, and social protection schemes – https://socialsecurity.gov.mt
- • Commissioner for Revenue (CfR): FSS (Final Settlement System) income tax rules, payroll reporting, and tax compliance – https://cfr.gov.mt
- • National Statistics Office (NSO) Malta: labor market, wage indices, and employment statistics – https://nso.gov.mt
Data verified and last updated: November 2025.
