Tax and Social Security in Malta: Rates, Part-Time Work and Payroll

Most employees in Malta see two main deductions on their payslip: income tax under the Final Settlement System (FSS) and Class 1 social-security contributions. They are separate calculations and neither should be estimated from the net salary alone.

This guide gives the standard 2026 figures for resident individuals. Foreign workers, non-residents, people with overseas income, directors and self-employed people may be treated differently.

Malta income-tax rates for 2026

Malta uses different bands depending on whether the taxpayer qualifies for single, married or parent rates. Some married and parent bands are more favourable when the taxpayer has qualifying children.

Tax status	0% band	15% band	25% band	35% band
Single	€0–€12,000	€12,001–€16,000	€16,001–€60,000	€60,001+
Married	€0–€15,000	€15,001–€23,000	€23,001–€60,000	€60,001+
Married, 1 child	€0–€17,500	€17,501–€26,500	€26,501–€60,000	€60,001+
Married, 2+ children	€0–€22,500	€22,501–€32,000	€32,001–€60,000	€60,001+
Parent	€0–€13,000	€13,001–€17,500	€17,501–€60,000	€60,001+
Parent, 1 child	€0–€14,500	€14,501–€21,000	€21,001–€60,000	€60,001+
Parent, 2+ children	€0–€18,500	€18,501–€25,500	€25,501–€60,000	€60,001+

These are bands of annual chargeable income, not simply gross salary. Deductions, exemptions, taxable benefits and personal circumstances can change the final calculation. Use the official MTCA 2026 tax-rate table, which also provides the multiplication and subtraction amounts used for each band.

For a payroll estimate, use MTCA's FSS calculator. Treat the result as an estimate until the employer or MTCA confirms the correct status.

Worked 2026 gross-to-net examples

These illustrations assume a full year, single resident rates, no deductions/benefits/bonus, a worker born in 1962 or later and 52 weekly Class 1 contributions. Actual monthly payroll varies with pay frequency, FS4 status and taxable benefits.

Annual gross	Estimated income tax	Estimated employee SSC	Estimated annual net	Average monthly net
€20,000	€2,275	€2,000	€15,725	€1,310
€30,000	€4,775	€2,908	€22,317	€1,860
€40,000	€7,275	€2,908	€29,817	€2,485

These are planning figures, not payslip guarantees. Married/parent rates, qualifying children, mid-year arrival, overseas income, fringe benefits and the annual statutory bonus change the result.

What happens when you start a job

1. Give the employer the correct identity, address and tax details.
2. Complete an FS4 Payee Status Declaration when starting or when your tax status changes.
3. Check whether payroll is using single, married, parent or another applicable rate.
4. Check the first payslip for gross pay, income tax, social-security contribution and net pay.
5. Keep every payslip and the annual FS3 statement from the employer.

The employer uses FSS to deduct tax during the year. An FS3 records pay and deductions for that employment; it is not the same thing as an employment contract or Jobsplus engagement form.

Tax number and social-security number for a newcomer

Do not create duplicate registrations. Use this order:

1. Give the employer your Malta residence/identity number and ask it to submit the Jobsplus engagement immediately.
2. If your residence card number ends in A, the engagement now transmits your details to Social Security; since July 2025 an eligible SSN is issued automatically. Self-employed Jobsplus engagements can trigger the same process.
3. If you have no Malta identity number, are an EU cross-border worker, or the automated issue does not apply, use the official SSN registration service or a Servizz.gov hub. An SSN is issued once for life.
4. An EU citizen who has applied for an SSN does not normally need a separate tax-registration application because the record is transmitted to MTCA. Other foreign individuals may need MTCA's expatriate taxpayer registration and receive a nine-digit tax number.
5. Ask payroll to show the tax and SSN used on the first payslip. Verify the record through mySocialSecurity/MTCA, and correct name, address or date-of-birth mismatches before creating another number.
6. Complete FS4 with the correct tax status and keep the annual FS3.

The employer is responsible for Jobsplus engagement and payroll deductions; you are responsible for supplying correct details, checking the first record and declaring income not settled by FSS.

How part-time employment is taxed

Malta's special part-time scheme can apply a final 10% tax rate, but not every person whose contract says “part time” qualifies.

Part-time income	Special 10% treatment
Employment	10% on up to €10,000 a year; maximum tax under the scheme is €1,000
Self-employment	10% on up to €12,000 of annual net profit; maximum tax under the scheme is €1,200
Amount above the limit	Declared and taxed under the normal rules

According to MTCA, the 10% employment rate may be available to a full-time employee, pensioner or full-time student or apprentice. A married person working only part time may also qualify where the spouse has full-time employment or is a pensioner or full-time student or apprentice.

The employment must also satisfy the scheme's conditions. In particular, it should be registered with Jobsplus, normally involve fewer than 30 hours a week, and not be employment with the same organisation or group as the worker's full-time employer. Certain board, tribunal and similar payments do not qualify.

Read the complete official part-time tax conditions before assuming the rate applies.

If you only have one part-time job

A single person who only works part time and is not also a pensioner or full-time student does not automatically qualify for the special 10% rate. The income may instead be taxed under the normal annual bands. This can produce less tax than a flat 10% when total chargeable income remains within the 0% band.

If the employer did not deduct enough

Ask payroll to correct the deduction during the year or use the official TA23 part-time employment submission and payment service. Tax due on part-time activity is normally settled by the end of April following the relevant year.

Full-time employment with reduced hours

“Full-time with reduced hours” is an employment-status arrangement, not a special income-tax rate. DIER defines it as a full-time basis under which employer and employee agree that fewer hours will be worked and the wage and entitlements are calculated pro rata.

Pay from that main employment normally goes through FSS under the worker's ordinary annual tax rates. It should not be moved to the special 10% part-time scheme merely because fewer than 40 hours are worked.

If the worker also has a separate part-time job, that second income may qualify for the 10% scheme only if all the MTCA conditions are satisfied. Ask payroll or MTCA to confirm the treatment when the Jobsplus status and the tax treatment appear inconsistent.

For employment entitlements, see part-time and reduced-hours rights in Malta.

Employee social-security contributions in 2026

Employees generally pay Class 1 contributions through payroll and the employer also pays a contribution. The common 2026 employee rates for a person born on or after 1 January 1962 are:

Basic weekly wage	Employee's weekly contribution
€0.10–€229.44	€22.94, or 10% of the actual basic wage if the employee chooses the pro-rata option
€229.45–€559.30	10% of the basic weekly wage
€559.31 or more	€55.93

Choosing the lower pro-rata contribution below the weekly minimum-wage threshold produces proportionally reduced contributory-benefit credit. The employer's share is not reduced by the employee's choice.

Different caps apply to people born before 1 January 1962, and separate categories apply to young workers and qualifying students. Check the complete 2026 Class 1 contribution table or use the official social-security contribution calculator.

A person working both full time and part time generally pays social-security contributions through the full-time job only. Someone whose only employment is part time may still owe Class 1 contributions, subject to the applicable earnings and hours rules. Read the Department of Social Security's contribution guidance for the current position.

A five-minute payslip check

Use the same order every month:

1. Confirm the pay period and basic gross wage.
2. Add overtime, bonuses, commissions and taxable benefits.
3. Check that the tax status matches the latest FS4.
4. Compare the FSS deduction with the official calculator.
5. Compare the social-security deduction with the 2026 Class 1 table.
6. Confirm that any part-time income is clearly separated and uses the correct treatment.
7. Save the payslip and later reconcile it with the annual FS3.

If something is wrong, ask payroll for the calculation in writing. When the issue remains unresolved, contact MTCA for tax questions, the Department of Social Security for contribution records, or DIER for unpaid wages and unlawful deductions.

Related practical guides

• Employment Rights in Malta: Pay, Hours, Leave and Contracts
• Tax Residence in Malta: What Relocating Individuals Should Know
• Working in Malta: Jobs, Permits, Tax and Employment Basics
• Malta e-ID and Online Government Services

Browse all Everyday Life guides.

Last reviewed: 9 August 2026. Tax bands, contribution rates and eligibility rules can change; use the linked official pages for calculations and filing decisions.