Overview of Social Security in Malta
The Maltese social security system is a mandatory, contribution-based framework governed by the Social Security Act. It is designed to provide financial support during various life stages, including employment, illness, parenthood, and retirement. For foreign nationals working in Malta, participation in this system is compulsory and begins immediately upon the commencement of legal employment.
The system is managed by the Department of Social Security (DSS) under the Ministry for Social Policy and Children’s Rights. Contributions are automatically deducted from salaries for employees or paid directly by the self-employed, granting access to a wide range of benefits and the national healthcare system.
Registration and Social Security Number
To work legally in Malta, every individual must possess a Social Security Number (SSN). This number is essential for tax purposes, payroll processing, and accessing healthcare services.
- EU/EEA/Swiss Nationals: Can apply for an SSN online by providing a copy of their passport or ID card and a copy of their employment contract.
- Third-Country Nationals (TCNs): Typically receive an SSN automatically once their Single Permit (work permit) is approved by Identità.
- Self-Employed: Must register as self-occupied with the Department of Social Security and Jobsplus to start their contribution payments.
Once registered, the SSN remains the same throughout the individual’s life in Malta, even if they change employers or move from employment to self-employment.
Contribution Rates and Categories
Social security contributions in Malta are divided into two main classes based on the nature of employment:
Class 1 Contributions: Employees
For individuals employed by a company, contributions are split three ways: the employee pays 10%, the employer pays 10%, and the state contributes an additional amount. The rates are calculated on the basic weekly wage.
- Standard Rate: 10% of the basic weekly wage.
- Minimum Contribution: Approximately 20.00 EUR ($21.60 USD, Jan 2026) per week for those earning the minimum wage.
- Maximum Cap: For those born after 1962, the maximum weekly contribution is capped at approximately 54.50 EUR ($58.86 USD, Jan 2026).
Class 2 Contributions: Self-Employed
Self-employed individuals (self-occupied) are responsible for the full contribution themselves, which is generally 15% of their net annual income from the previous year. These payments are typically made in three installments: April, August, and December.
Social Security Benefits
Contributions grant foreign workers eligibility for several short-term and long-term benefits. Eligibility often depends on a minimum number of weeks paid into the system.
- Sickness Benefit: Paid to employees who are unable to work due to illness, provided they have paid at least 50 weeks of contributions since entering the system.
- Unemployment Benefit: Available to those who lose their job through no fault of their own, provided they meet specific contribution requirements.
- Maternity and Paternity Leave: Malta provides statutory leave and benefit payments for new parents working in the country.
- Injury Benefit: Coverage for workplace-related accidents or occupational diseases.
The Maltese Pension System
The state pension in Malta is known as the "Two-Thirds Pension." To qualify for a full pension, individuals must meet specific contribution targets over their working life.
Retirement Age
For individuals born after 1961, the statutory retirement age is 65 years. However, early retirement at age 61 may be possible if the individual has accumulated a specific number of contributions (currently 2,080 weeks or 40 years of payments) and is no longer gainfully employed.
Minimum Requirements for Foreigners
To qualify for any Maltese pension, a claimant must generally have a minimum of 520 weeks (10 years) of contributions, of which at least 156 weeks must have been paid in Malta. For EU nationals, the principle of "aggregation of periods" allows contributions made in other EU member states to count toward the 10-year minimum.
International Agreements and Portability
The portability of social security benefits depends largely on the worker's nationality and the existence of bilateral agreements:
- EU/EEA/UK Nationals: Protected by EU Social Security Coordination rules. Contributions in Malta can be combined with those in other EU countries to determine pension eligibility and amounts.
- Bilateral Agreements: Malta has specific social security agreements with countries including Australia, Canada, New Zealand, and Libya. These agreements facilitate the transfer or recognition of contribution periods.
- Third-Country Nationals (No Agreement): TCNs from countries without a bilateral agreement may not be able to export their Maltese contributions. If they leave Malta before reaching retirement age or before meeting the 10-year threshold, they may lose access to these funds. No refunds are issued for social security contributions paid.
