Understanding Malta's Updated Labour Migration Policy

What is the Malta Labour Migration Policy?

Malta's Labour Migration Policy regulates the employment of Third-Country Nationals (TCNs), ensuring that labour migration responds to genuine market needs while protecting workers' rights and supporting social cohesion.

Over the past decade, Malta's strong economic growth, combined with an ageing population and low fertility rates, has significantly reduced the size of the local workforce. Foreign workers have therefore become essential to sustaining economic activity, filling skills gaps, and supporting emerging industries.

While this reliance on foreign labour has supported growth, it has also created challenges, including pressure on infrastructure, high employee turnover, and risks of worker exploitation. In response, the government introduced a set of targeted reforms to the Labour Migration Policy, some of which came into effect in January 2026, to promote stability, sustainability, and better workforce integration.

What are the new measures which have been implemented in January 2026?

1 – Minimum Termination Rate Thresholds Prior to Application

A new system of minimum termination rate thresholds is being phased in between August 2025 and July 2026. Since August 2025, Jobsplus has been tracking employers' termination trends during the Labour Market Needs Test (LMNT) as part of the assessment for TCN permit applications. Applicants are informed if the established thresholds are exceeded. This phased approach is intended to gradually align the labour market with acceptable standards, while ensuring measures are in place to retain the workforce and prevent the unnecessary loss of skilled and experienced employees, while also creating a more stable and supportive work environment and limiting the need for new applications for TCNs.

The measure applies to new applications, applications for TCNs still abroad, and change-of-employer requests. Jobsplus reviews termination trends using data from the Termination Form, which details reasons for terminating employment. However, not all termination reasons are considered, as certain categories are excluded from the definition of termination for the purposes of this measure, including situations where an employee is transferred to the company to which they have been assigned for a period of at least 12 months.

Termination rates are calculated as the number of terminations divided by the total workforce over the past 12 months. Thresholds are set above sector averages to ensure fairness across industries, with the aim of encouraging workforce retention, reducing unnecessary turnover, creating a more stable labour market, and minimising repeated dependence on new TCN recruitment.

Applicable Thresholds by Company Size

• Micro enterprises with 1 to 9 employees: No thresholds apply.
• Small enterprises with 10 to 50 employees: Applications will be refused if termination rates exceed 50% of the workforce. This threshold, which is currently set at 60%, will first decrease to 55 % by April 2026 and then to 50% by July 2026.
• Medium enterprises with 51 to 249 employees: Applications will be refused if termination rates exceed 45%. The threshold will gradually decrease from the current threshold of 55% to 50% by April 2026, followed by a further reduction to 45% by July 2026.
• Large enterprises with 250 or more employees: Applications will be refused if termination rates exceed 40%. This threshold will decrease from the current 50% to 45% by April 2026, followed by a further reduction to 40% by July 2026.

Exemptions apply to:

• Health and care-related occupations.
• Recognised student workers and mandatory work placements.
• TCNs eligible under the Key Employment Initiative (KEI).
• Roles critical to national services.

Jobsplus may allow temporary exceptions based on recommendations from Malta Enterprise, the Civil Aviation Directorate, Gaming Malta, or other relevant authorities. Exemptions can also apply in situations involving legal obligations to rehire previously terminated TCNs or requirements linked to public tenders.

2 – Renewal Periods

Effective January 2026, the renewal period subsequent to the completion of one (1) year of employment shall be increased from one (1) year to two (2) years, conditional upon the Third Country National (TCN) being offered an employment contract with a minimum validity of two (2) years. This provision seeks to promote employer practices that prioritise the retention of the existing workforce. In addition, low-skilled workers are encouraged to participate in training programmes aimed at enhancing skills development and improving integration outcomes.

Moreover, work permits for TCNs covered by the Key Employment Initiative (KEI), the Specialist Employee Initiative (SEI), the EU Blue Card, and occupations listed on the Skilled Occupation List will now be automatically renewed for a period of three years.

3 – Integration Courses prior to arrival in Malta

Another measure being implemented in January 2026 requires third-country nationals applying under the single permit system to complete pre-departure integration courses. Identità will issue approval only upon receipt of documentary evidence confirming completion of the course.

Prior to their arrival in Malta, TCNs will be provided with essential information to support their transition, including guidance on legal rights, cultural norms, and available opportunities. They must also demonstrate proficiency in either Maltese or English.

Employers are therefore encouraged to review their internal practices to ensure compliance with the updated requirements and to adopt strategies that prioritise retention, training, and integration. Proactive engagement with these reforms will not only safeguard business continuity but also contribute to a more resilient and inclusive labour market in Malta.

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.