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In Malta, if your gross annual salary is €21,420, or €1,785 per month, the total amount of taxes and contributions that will be deducted from your salary is €4,388.
This means that your net income, or salary after tax, will be €17,032 per year, €1,419 per month, or €328 per week.
We've designed our Malta salary calculator for ease of use, which required making a few assumptions: users are unmarried, over 18 years old, and have no dependents. If you're a student, please make sure to indicate this, as it may qualify you for a reduction in Social Security Contributions.
Be aware that your actual tax liability might vary based on your specific circumstances. However, despite these potential variations, our tool will calculate a reliable estimate of your net pay in Malta.
Tax Breakdown
For a gross annual income of €21,420, our Malta tax calculator projects a tax liability of €366 per month, approximately 20% of your paycheck. The table below breaks down the taxes and contributions levied on these employment earnings.
| Yearly | Monthly | Weekly | |
|---|---|---|---|
| Gross Income | €21,420 | €1,785 | €412 |
| Income Tax | €2,758 | €230 | €53 |
| National Insurance | €2,142 | €178 | €41 |
| Government Bonuses | -€513 | -€43 | -€10 |
| Total Tax Due | €4,388 | €366 | €84 |
| Take-Home Pay | €17,032 | €1,419 | €328 |
What Is the Average Salary in Malta?
Based on the latest Labour Force Survey from Malta's National Statistics Office, the average annual gross salary in the last quarter of 2022 was €21,420, or €1,785 per month. If we enter this figure into our salary calculator, we get a projected monthly salary of €1,419 net of tax, resulting in an effective tax rate of around 20%.
Of course, this number will vary depending on factors such as industry, job role, and years of experience. The financial and insurance sector boasts the highest average salary, standing at €28,476 per year before taxes (€2,373 per month), while the average worker in the construction sector earns an annual salary of €17,136, or €1,428 a month, before deducting any taxes and contributions.
What Is the Minimum Wage in Malta?
The national minimum wage in Malta in 2023 is €192.73 per week for full-time employees aged 18 years or older. If we extrapolate this figure to an entire year, we get a minimum annual salary of €10,022 before tax (€835 per month), which equates to a monthly take-home pay of around €776, as estimated by our tax calculator.
The minimum wage for 17-year-olds is sightly lower, sitting at €185.95 per week, while for those under 17, the weekly pay is set to €183.11. If we assume full-time employment, these numbers correspond to yearly salaries of €9,669, and €9,522, respectively.
| Age Group | Weekly Wage | Monthly Salary | Annual Salary |
|---|---|---|---|
| Aged 18+ | €192.73 | €835 | €10,022 |
| Aged 17 | €185.95 | €806 | €9,669 |
| Under 17 | €183.11 | €793 | €9,522 |
Is Malta a Tax Haven?
Malta is regarded by some as a tax haven, due to its favorable corporate tax structure and involvement in multiple double taxation treaties. However, Malta has been working to align its tax system with international norms and tackle tax dodging. It has adopted various EU Directives related to taxation and pledged to engage in information exchange.
Although the corporate tax rate of 35% might not appear low in comparison to other countries, Malta offers a tax refund system for non-resident shareholders. Basically, taxes might look high "on paper", but it is common for international companies to reduce their tax rate to ranges as low as 0% – 6.25% under specific conditions. This has led to the small country being referred to as "the Panama of the EU".
While Malta's allure to foreign businesses and investors is undeniable, it has also invited criticism from the European Parliament. As a result of the EU's recent scrutiny, the Maltese government has taken measures to address some of the concerns raised by the international community.
Taxes Included in This Take-Home Pay Calculator
Employees in Malta have taxes deducted from their salary by their employer, while self-employed individuals and others must pay taxes directly to the tax authorities by filing a tax return. Our tax calculator includes the following taxes and bonuses:
- Income Tax: The Maltese government applies a progressive income tax system, with rates that vary from 0% to 35%. In 2023, individuals with an income of up to €9,100 are not subject to income tax. The tax rate for those earning between €9,101 and €60,000 ranges from 15% to 25%, while for those earning above €60,000, the tax rate is 35%.
- National Insurance: In Malta, National Insurance refers to the portion of an individual's salary that is withheld to support a range of social security benefits, including healthcare, pensions, and unemployment benefits. Employers are required to subtract these contributions from their workers' paychecks and forward them to the Department of Social Security every month. Both employees and employers contribute 10% of the employee's gross salary towards Social Security.
- Government Bonuses: Employers in Malta pay two types of bonuses to employees, namely the Statutory Bonus and the Weekly Allowance. The Statutory Bonus is paid bi-annually in June and December, while the Weekly Allowance is paid twice a year in March and September. All registered employees, including part-timers who work full-time elsewhere, are entitled to them. Keep in mind that these bonuses are not paid by the government, but by the employer, so they are subject to income tax.
It's important to note that students enrolled in a full-time course of studies or instruction under the Student-Worker Scheme or other similar schemes are eligible for a reduction in National Insurance. While the rate remains at 10%, this reduction effectively limits a student's social security contributions to €7.94 per week, or approximately €413 per year.
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