Important payroll changes in Malta

Malta introduced some important new changes to its payroll regulations on 1 January 2019. Under Legal Notice 274 of 2018, all employees are to receive itemised payslips from their employers in Malta.

It is now required that all employees are issued, either before or on the date that wages are paid, with an itemised payslip that must include the following information:

  • Name and address of employer
  • Name of employee
  • Employee’s designation
  • Total wages paid and the breakdown
  • The period in respect of which the contents relate to
  • The number of normal hours worked, including those worked on Sunday or on a public holiday when this is part of the scheduled normal hours;
  • The number of hours entitled at overtime or special rate broken down into those in excess of normal daily or weekly hours, hours worked on a Sunday or on a public holiday;
  • The number of hours of annual leave used and any remaining balance;
  • The basic wages received;
  • A breakdown of any bonuses, allowances or commissions received; and
  • Any deductions effected, including national insurance contributions, tax and others.

An employee also has the right to request from their employer, up to a maximum of four times a year, their sick leave entitlement and the number of hours of sick leave used during a calendar year. The employer must provide the employee with this information in writing within five working days of the date of such a request.

Payroll is a critical financial responsibility for businesses, which are required to pay their employees accurately and comply with government regulations. Any employer contravening these provisions will be guilty of an offence.

By outsourcing your payroll you can free up your valuable time and resources to concentrate on the important business of running your company. Sovereign Trust (Malta) Ltd can provide a comprehensive yet flexible outsourced payroll service that is tailored to each of our client’s specific requirements.

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