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In 2025, Malta has introduced a series of changes to its employment law, affecting key aspects of the employment relationship, including the payment of wages, statutory leave entitlements, pay transparency obligations and the enforcement framework under the Maltese law. These amendments reflect ongoing legislative efforts to strengthen employee protections while providing greater clarity on employers' compliance obligations across a range of employment scenarios.
The table below provides a high-level overview of the principal amendments, outlining the relevant legislative instruments, the position under the previous legal framework and the key changes introduced.
| Scope | Relevant Legislation | Previous Law Applicable | New Amendment |
|---|---|---|---|
| Regulating Payment of Wages | Article 11 of the Employment and Industrial Relations Act (EIRA) Effective 1st October 2025 | Wages payable to employees in Malta shall be paid in money being legal tender in Malta, that is, in Euros. Every payment of such wages made in any other form, and any covenant in any contract providing for another form of payment shall be null and void. The provision further clarifies that payment of wages by cheque or to a bank account of the employee is considered as payment in legal tender where payment in this manner is customary or necessary or is consented to by the employee concerned. | The general rules still hold today, however, the new amendment specifically targets TCNs (as defined in the Immigration Act) whose employment commenced on 1st October 2025 and is governed by Maltese law. For those employment relationships which commenced after that date, wages earned shall be paid exclusively by means of a bank transfer to an account held in the name of the employee or through an electronic transfer facilitated by an accredited and licensed financial institution. |
| Transparent and Predictable Working Conditions | Transparent and Predictable Working Conditions Regulations of 2022 (S.L. 452.126) L.N. 112 of 2025 Effective 27th August 2025 | N/A |
(1) Grants rights to 'applicants for employment' to be able to receive from the prospective employer information about the initial pay, or its range, to be attributed to the position concerned. Where the employer is governed by a collective agreement, the applicant for employment shall also have the right to receive the relevant pay provisions of the collective agreement which apply to the role being filled. This information shall be supplied before the actual start of employment. (2) Article 5A : all workers now have the right to request their employer, at any time during employment, their individual pay level and the pay levels for categories of workers performing the same work as them. Where there is a collective agreement regulating the employment relationship within the company, the assessment of who performs the same work as others might be an easier task than it is in respect of other entities where there is no collective agreement in place and thus, where the assessment is possibly carried out internally by the employer. (3) All information above-mentioned must be provided within a reasonable time. The Pay Transparency Directive, therefore provides that this must be done within a period not exceeding two (2) months from the date on which the request is made. |
| Prescriptive Period | EIRA Effective 6th August 2025 | Complaints and procedures had to be initiated within one year. | Extension of the prescriptive period for prosecuting offences under EIRA. Now, employers must be aware that claims may be brought up to two years after the alleged infringement. |
| Fines | EIRA Article 45 Effective 6th August 2025 | An employer who violates any recognised condition of employment, whether set out in a national standard order, sectoral regulation order, collective agreement or under Chapter 452 or any regulations made thereunder, is, unless a different punishment applies, liable on conviction to a fine ranging from €232.94 to €2,329.37. | This increased fines imposed on employers who were found to be in breach of employment law. With the introduction of this new amendment, employers will face stricter fines ranging from €2,000 to €5,000. Where employers are repeat offenders, the fine will increase to a minimum of €5,000 and may reach up to €7,000. |
| Urgent Family Leave | Urgent Family Leave Regulations, 2004 Effective 4th April 2025 | Employees were entitled to 15 hours per year of urgent family leave. | Employees are to have access to 32 hours of urgent family leave per year. This is without prejudice to the employer's right to introduce more favourable conditions including therefore, a higher number of hours of urgent family leave, in collective agreements or employment contracts. The first 16 hours availed of by the employee for urgent family reasons will be deducted from their annual leave entitlement, whilst the remaining 16 hours will then be deducted from the annual sick leave entitlement of the employee. N.B This amendment is applicable to both full-time and part-time employees on a pro-rata basis. |
| Temporary Workers | Regulations 2 & 13, Temporary Agency Workers Regulations (S.L. 452.133) L.N. 125 of 2025 Effective 1st January 2025 | Only applicable to temporary agency workers prior to the amendment. | This new amendment includes outsourcing agencies ensuring that all employment agencies are held to the same standard. It has removed exemptions and therefore, temporary workers should now receive the same pay and benefits as directly employed workers receive, from day one. If a temporary worker's existing terms are better than the assigned workplace's, the more favourable terms are to prevail. The new law defines specific scenarios where employment agencies and use undertakings are protected from discrimination claims. |
| Miscarriage Leave | Miscarriage Leave Regulations L.N. 274 of 2025 Effective 1st January 2026 | N/A | The Regulations introduce a period of paid leave, that is, seven (7) working days of miscarriage leave without loss of wages to all workers in the unfortunate event of a miscarriage. This right is irrespective of gender or sexual orientation, civil or family status and irrespective of whether the workers are engaged in the public or private sector. This law applies whether the miscarriage occurred abroad or in Malta, in all cases before the twenty second (22nd) week of pregnancy, reason being that loss or termination occurring after the 22nd week falls under the scope of maternity leave in terms of the applicable law. |
| Minimum Special Leave Entitlements | Minimum Special Leave Entitlements Regulations L.N. 275 of 2025 Effective 1st January 2026 | N/A | This new legal notice stipulates that as from the 1st of January 2026, workers will be eligible for special parental bereavement leave. With bereavement leave, this entitlement will cumulatively be of seven (7) working days. |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
