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Population:
Malta has a population of approximately 520,000 people (2023). It is one of the most densely populated countries in Europe. The population includes a significant number of expatriates, particularly from the UK and other European countries.
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Capital:
The capital of Malta is Valletta, a small but historic city with a population of about 6,000 people. Valletta is known for its rich cultural heritage, including baroque architecture and UNESCO World Heritage status.
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Economic Strength:
Malta has a high-income economy that is well-diversified. Key sectors include:
- Tourism: As an island nation with a Mediterranean climate and historical sites, tourism is one of the main pillars of Malta’s economy.
- Financial Services: Malta is a hub for financial services, including banking, insurance, and fund management, due to its favorable regulatory environment.
- Information Technology and iGaming: The country has developed into a major center for online gaming companies and tech startups.
- Manufacturing: This includes electronics, pharmaceuticals, and aviation-related industries.
- Maritime: Malta has one of the largest ship registers in the world.
Malta’s GDP stands at around $18 billion USD (2023), with steady growth due to its strategic location, EU membership, and diverse industries.
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Culture:
Malta’s culture is a blend of Mediterranean, European, and Middle Eastern influences due to its complex history. The official languages are Maltese and English, with Italian also widely spoken. Malta has a rich tradition of Catholic festivals, art, and music, with religious events playing a key role in local life. Valletta is a cultural hub, and Malta has several UNESCO World Heritage sites, including the Megalithic Temples and Hypogeum of Ħal Saflieni.
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Currency:
The official currency of Malta is the Euro (EUR), adopted in 2008 when Malta joined the Eurozone.
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Health Insurance and Social Security System:
Malta has a comprehensive healthcare system that provides free public healthcare services to all residents through a tax-funded system. Residents are also entitled to European Health Insurance Cards (EHIC) for treatment when traveling within the EU. While the public system is robust, many people opt for private health insurance to access faster services.
The social security system in Malta covers pensions, unemployment benefits, sickness benefits, and maternity leave. Both employers and employees contribute to the system.
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Costs for the Employer:
Employers in Malta are required to contribute to the social security system, as well as make payments towards income tax and other mandatory contributions. The key employer contributions include:
- Social Security Contributions: Employers contribute 10% of the employee’s basic wage to social security, while employees also contribute 10%.
- Other Contributions: Employers are also required to pay additional funds such as maternity leave contributions to the government.
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Salary and Bonuses in Malta:
In Malta, salaries vary by sector. Bonuses are commonly paid in sectors such as finance, iGaming, and IT, often based on performance.
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Payslip:
A payslip in Malta typically includes:
- Gross Salary
- Deductions:
- Income Tax: Progressive tax system ranging from 0% to 35%, depending on income level.
- Social Security Contributions: Employers and employees each contribute 10% of the basic salary.
- Health Insurance (if applicable): Many employers offer additional private health insurance.
- Net Salary
- Bonuses and other benefits (where applicable).
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Public Holidays:
Malta has 14 public holidays, among the highest in Europe. These include national and religious holidays:
- New Year’s Day (1 January)
- Feast of St. Paul’s Shipwreck (10 February)
- Good Friday (varies)
- Freedom Day (31 March)
- Worker’s Day (1 May)
- Sovereign Military Order of Malta Day (29 June)
- Independence Day (21 September)
- Republic Day (13 December)
- Christmas Day (25 December)
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Working Hours:
The standard working week in Malta is 40 hours, usually spread over five days (Monday to Friday). Overtime is typically compensated at a higher rate (typically 1.5x the normal hourly rate), and the maximum allowable working time, including overtime, is 48 hours per week.
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Vacation:
Employees in Malta are entitled to 24 days of paid annual leave (based on a 40-hour workweek), in addition to public holidays. Vacation days increase if the employee works more than the standard 40-hour week. Leave is accrued based on the period of service, and employees can negotiate additional leave in their contracts.
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Sick Leave:
Sick leave entitlements in Malta are regulated by employment contracts or collective agreements. Typically, employees are entitled to two weeks of paid sick leave per year. After this, they can apply for sickness benefits through the social security system, which provides compensation for longer-term illness.
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Termination/Severance:
Termination and severance pay in Malta are regulated by employment law:
- Notice Period: The required notice period depends on the length of service:
- Less than 6 months: 1 week’s notice.
- 6 months to 2 years: 2 weeks’ notice.
- 2 to 4 years: 4 weeks’ notice.
- 4 to 7 years: 8 weeks’ notice.
- More than 7 years: 12 weeks’ notice.
- Severance Pay: Severance pay is generally required if the termination is due to redundancy or unfair dismissal. The amount depends on the employment contract and may involve one month’s salary for each year of service.
- Unfair Dismissal: Employees can challenge dismissal in cases of unfair or unjust termination. The employer may be required to pay compensation or reinstate the employee.
Malta is a dynamic and growing economy with a rich cultural history. The country has a well-developed healthcare and social security system, and its competitive sectors, such as finance and iGaming, attract a growing workforce. It offers a good work-life balance with generous leave entitlements and a structured employment system.