Social security

The welfare benefits system and public health care in Malta are funded through taxation and national insurance contributions from employers, employees, and self-employed persons.

The welfare benefits system and public health care in Malta are funded through taxation and national insurance contributions from employers, employees, and self-employed persons.

The social security system distinguishes between two classes of contributions: class one paid by employed persons and class two paid by self-employed.

Under the class one system, the rate payable by employees and employers represents 10 percent of the basic weekly wage, subject to a minimum amount of € 16.80 per week, up to a maximum of € 42.57 per week (the maximum amount is € 34,49 per week for employees born up to 31/12/1961).

Class 1 Social Security Contributions (2016)

Basic weekly wage € Weekly Rate Payable
from to by employee by employer total
168.02 425.73 10% 10% n/a
425.74 n/a 42.57 42.57 85.14

 Under the class two system, contributions are to be paid by all individuals who derive income of more than €910 from an economic activity and who are not employed.

The Social Security Act defines two categories of persons that are required to pay Class 2 Contributions as follows:

Self Occupied Persons - persons who earn income from Trade, Business, Profession, Vocation or any other economic activity that exceeds €910 per annum.

Self Employed Persons - persons who receive income from rents, investments, capital gains or any other income.

Rates for Class Two Social Security Contributions are based on the annual net profit or income for the year preceding the contribution payment year.

Class 2 Social Security Contributions (2016)

Annual Net Income €
from to Weekly rate
910 9,960 28.73(1)
9,961 22,138 15%
22,139 n/a 63,86

(1) €28.73 or 15% of the annual net earnings if the person is a part-time self-employed woman whose annual net earnings do not exceed €9,960

Source: https://ird.gov.mt/services/sscrates.aspx#2016

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