An employer of record in Malta is a local entity that legally employs a worker on your behalf under the Employment and Industrial Relations Act (Cap. 452), runs Maltese payroll, remits social security contributions and carries the employer obligations, including the notice ladder that scales from one week to twelve with length of service. Malta's English-language administration and EU membership make it a frequent EOR market for companies hiring in iGaming, financial services and tech without opening a Maltese company.
What an EOR does in Malta
The EOR signs the employment contract as legal employer, registers the engagement with the authorities, runs monthly payroll with tax and social security withheld at source, and administers leave, termination and any collective redundancy consultation duties. Malta's employment framework is set by the Employment and Industrial Relations Act 2002, Cap. 452, supplemented by subsidiary legislation; the EOR's contract has to meet that floor regardless of what the buyer's home-country template says. For a foreign company, the practical value is that the first Maltese payslip can be issued in days rather than after a company formation, bank account and payroll registration.
The notice ladder under Article 36
Notice scales with continuous service: no notice in the first month, one week from one to six months, two weeks from six months to two years, four weeks from two to four years and eight weeks from four to seven years. Beyond seven years it climbs by roughly a week per year, reaching nine weeks at seven to eight years, ten at eight to nine, eleven at nine to ten and a maximum of twelve weeks past ten years of service. Longer periods may be agreed for technical, administrative, executive or managerial posts. An EOR should be able to state, per employee, exactly which band applies today and what the accrued notice cost would be.
Social security contributions
For employees born on or after 1 January 1962, employer and employee each pay social security contributions at 10% of salary, with the contribution fixed at EUR 55.93 per week where the annual salary exceeds EUR 29,084 in 2026. That cap matters commercially: for well-paid roles the employer contribution flattens into a fixed weekly amount rather than growing with salary, which makes Maltese employer on-costs unusually predictable. Rates are typically adjusted at the start of each calendar year, so check the current figures at the point of hire, and expect a competent EOR to show the contribution as its own invoice line rather than blending it into the fee.
Entity or EOR in Malta
Malta is a small, well-administered jurisdiction where forming a company is not especially hard, so the EOR case rests on headcount and intent. For one to a handful of hires, or while testing whether a Maltese operation makes sense at all, the EOR's fee is cheaper than running a company, a payroll and local advisers. Once a team is established and growing, or where a regulator requires the operating company itself to employ the staff, as licensing regimes in Maltese financial services and gaming can, the balance tips to a direct entity. Contracts and statute control; nothing on this page is legal or tax advice.
Questions people ask about employer of record malta
What notice applies to a Maltese employee with three years of service?
Four weeks. The statutory ladder runs from one week after a month of service to a maximum of twelve weeks beyond ten years, and longer periods may be agreed for technical, administrative, executive or managerial posts.
What do social security contributions cost in Malta?
Employer and employee each pay 10% of salary, fixed at EUR 55.93 per week for annual salaries above EUR 29,084 in 2026 for employees born on or after 1 January 1962. Rates are usually adjusted each January.
Does EU law apply to a Maltese EOR hire?
Yes. Malta is an EU member state, so EU-derived employment protections apply alongside the Employment and Industrial Relations Act, and the EOR as legal employer must meet both.
When does an entity beat an EOR in Malta?
Once headcount is established and growing, or where a licensing regime requires the regulated company itself to employ the staff. Below that, the EOR is usually cheaper than running a company, payroll and local advisers for a small team.