Minimum wage is set by the Government in the National Minimum Wage National Standard Order. The minimum wage rate in Malta is set on the recommendation of Employment Relations Board which has representation from all the social partners including independent experts. Wages at the sectoral level may also be set by the government in accordance with the recommendations of the Board. Wages can also be determined through collective bargaining with the condition that these should not be less than those stipulated by the government in the national standard order or sectoral wages council wage regulation order(s).
Minimum wage level is adjusted yearly based on the rate of inflation calculated by the Retail Price Index. A mandatory cost of living allowance is then added to all wage levels including minimum wages to offset any increase in the cost of living.
The National Minimum Wage National Standard Order is applicable to all employees except those covered by sectoral regulation orders in which case the sectoral regulation order applies. Specific Wage Regulation Orders are issued for the following sectors: Hotels and Clubs; Public Transport; Construction, Agriculture; Beverage; Clay and Glass Work Products; Food Manufacturing; Hire of cars and Private Buses ; Hospitals and Clinics; Jewellery and Watches; Papers, Plastic, Chemicals and Petroleum; Private Security Services; Sextons and Custodians Professional Offices; Tobacco Manufacture; Woodworks and Private Cleaning Services; Textiles
and Allied Industries; Leather Goods and Shoes Industries; Transport Equipment, Metal and Allied Industries; Agriculture and Allied Industries.
The minimum wage set under the National Minimum Wage National Standard Order also varies based on the age of a worker. The national minimum wage rate for part-time workers is calculated on the pro-rata basis and by the same hourly rate as that of the full-time workers. The hourly rate is determined by dividing the amount of minimum wage by forty.
Minister shall appoint labour inspectors to carry out inspections in order to ensure minimum wage compliance. Failure to pay an employee the rate stipulated in any national standard order or sectoral regulation orders, shall result in a fine of between Lm 232.94 and Lm 2,329.37.
Sources: §3 & 4 of the The Principle Act No. XXXIIII of 2016; National Minimum Wage National Standard Order (S.L.452.71)
The current minimum wage rates can be found in Minimum Wage Section.
A wage is defined as remuneration or earnings, payable by an employer to an employee and includes any bonus payable under article 23 of Employment and Industrial Relations Act (paid twice a year, once in June and once in December) other than any bonus or allowance related to performance or production.
The Act also requires that wages be paid in legal tender. Employer is required to pay wages at regular intervals which should not exceed four weeks although a collective agreement may set a different wage payment interval. Deductions from wages are not allowed except in cases provided under the law.
Sources: §2, 11-15, 22 & 23 of the The Principle Act No. XXXIIII of 2016