Malta Social Security Contributions Guide 2026
Malta operates a social security system funded by contributions from employees and employers. Class 1 contributions apply to employed persons at a rate of 10% each for employee and employer, calculated on basic weekly earnings up to a capped amount. Self-employed persons pay Class 2 contributions at a flat weekly rate.
Overview — Social Security in Malta
Social security in Malta is administered by the Department of Social Security (DSS). The system provides benefits including a retirement pension, unemployment benefits, sickness benefits, maternity leave, and children's allowance. Contributions are collected through the tax system alongside income tax. The contribution year follows the calendar year. Both employees and employers must register with the DSS and make contributions on a weekly basis.
Class 1 Contributions — Employed Persons
For employed persons, Class 1 contributions are payable weekly:
- Employee contribution: 10% of gross weekly earnings (deducted from salary)
- Employer contribution: 10% of gross weekly earnings (paid by the employer on top of salary)
- Total: 20% of gross weekly earnings
Contributions are calculated on basic weekly earnings subject to a maximum weekly cap. The maximum insurable weekly earnings cap is approximately EUR 472 per week (total for both employee and employer combined, indexed annually). This means the maximum combined contribution is capped at roughly EUR 472 per week.
Class 2 Contributions — Self-Employed
Self-employed individuals pay Class 2 contributions at a flat weekly rate. The rate depends on the individual's age and income level. Self-employed persons earning above a certain threshold pay a higher flat rate. The contributions entitle the self-employed to the same social security benefits as employed persons, including the retirement pension.
Benefits Covered
Social security contributions fund a range of benefits:
- Retirement pension: Available from age 65, based on contribution history
- Unemployment benefit: Weekly payments for unemployed individuals who meet contribution conditions
- Sickness benefit: Weekly payments for individuals unable to work due to illness
- Maternity and paternity benefits: Paid leave for new parents
- Children's allowance: Monthly payments per dependent child
- Bonus system: Annual bonus (EUR 300-600) paid to pensioners and other benefit recipients
Filing and Payment
Social security contributions are collected through the PAYE (Pay As You Earn) system for employees. Employers deduct the employee's share from wages and add their own share, remitting the total to the CFR on a regular basis. Self-employed persons pay contributions quarterly or annually as part of their tax filing obligations. Late payment attracts interest and penalties.
FAQs
Is there a maximum contribution cap in Malta?
Yes, Class 1 contributions are capped based on a maximum weekly insurable earnings amount, which is approximately EUR 472 per week total for both employee and employer. Earnings above this cap are not subject to social security contributions.
Can I opt out of social security?
No, social security contributions are mandatory for all employed and self-employed persons in Malta. There is no opt-out provision. Contributions are required to build entitlement to state benefits, particularly the retirement pension.
Disclaimer
This guide provides general information about Maltese social security contributions for the 2026 tax year. Contribution rates and caps may change. Always consult with the Department of Social Security or a qualified advisor for advice specific to your situation. InvestmentKit does not provide tax advice.