Life satisfaction
Data source: 2016 EQLS survey
Ability to choose or change
methods of work
Data source: 2015 EWCS survey
Possibility to accumulate overtime
for days off
Data source: 2013 ECS survey
Living and working in Malta
19 mei 2022
- Population: 0.5 million (2021)
- Real GDP growth: 9.4% (2021)
- Unemployment rate: 4.4% (2020)
Data source: Eurostat
Eurofound provides research, data and analysis on a wide range of social and work-related topics. This information is largely comparative, but also offers country-specific information for each of the EU Member States, which included the UK prior to its withdrawal from the European Union on 31 January 2020. Most information is available in English but some has been translated to facilitate access at national level.
Eurofound strives to strengthen the ongoing link between its own work and national policy debates and priorities related to quality of life and work. Increasingly important in this context are the EU’s policy priorities for a European Green Deal, a digital future, an economy that works for people, promoting and strengthening European democracy. To help repair the economic and social damage caused by the COVID-19 pandemic, the European Commission, the European Parliament and EU leaders have also agreed on a recovery plan that will lead the way out of the crisis and lay the foundations for a modern and more sustainable Europe. The EU’s long-term budget, coupled with NextGenerationEU, the temporary instrument designed to boost the recovery, will be the largest stimulus package ever financed through the EU budget to help rebuild a post-COVID-19 Europe.
The European Semester provides a framework for the coordination of economic policies across the EU. It allows Member States to discuss their economic and budget plans and monitor progress at specific times throughout the year. For 2022, the European Semester resumes it broad economic and employment policy coordination, while further adapting in line with the implementation requirements of the Recovery and Resilience Facility. As part of this, Member States are encouraged to submit national reform programmes and stability/convergence programmes that will set out their economic and fiscal policy plans, as in previous Semester cycles. The main change in the 2022 cycle will be that the national reform programme will play a dual role. Besides its role for the European Semester, it will also fulfil one of the two bi-annual reporting requirements of Member States under the Recovery and Resilience Facility.
- European Commission: The European Semester
- European Commission: European Semester documents for Malta
- European Commission: Recovery and Resilience Facility
2015 Eurofound EWCS survey results in Malta: 98% of people consider themselves good at their work
Living and working in Malta and COVID-19
COVID-19 continues to have a profound impact on people’s lives across the globe, with major implications for quality of life and work. Eurofound has taken a multipronged response to the pandemic, adapting its research focus in a variety of ways. A new database of national-level policy responses, EU PolicyWatch, collates information on measures taken by government and social partners, as well as company practices, aiming to cushion the effects of the crisis. Eurofound's unique e-survey, Living, working and COVID-19, provides an insight into the impact of the pandemic on people’s lives across the EU, with the aim of helping policymakers to bring about an equal recovery from the crisis. Five rounds of the survey have been carried out to date: in April 2020 when most Member States were in lockdown, in July 2020 when society and economies were slowly reopening, in March 2021 as countries dealt again with various levels of lockdown and vaccine rollout, a panel survey in October/November 2021 to track developments since the start of the pandemic, and in March–May 2022, charting the latest developments and looking at how life has changed over the past two years. The survey investigates the impact on quality of life and society, democracy and trust, working and teleworking, the financial situation and security of people, the quality of public services, support measures and vaccinations during COVID-19. Findings for each country and a range of data pages are available.
Explore our data pages by country to find out more on the situation in Malta.
- Database: EU PolicyWatch - Malta
- Data: Quality of life during COVID-19 - Malta
- Data: Democracy and trust during COVID-19 - Malta
- Data: Working during COVID-19 - Malta
- Data: Financial situation and security during COVID-19 - Malta
- Data: Quality of public services during COVID-19 - Malta
- Data: Support measures during COVID-19 - Malta
- Data: Vaccinations during COVID-19 - Malta
- EMCC: Restructuring support instruments database
The country page gives access to Eurofound's most recent survey data and news, directly related to Malta:
- Living in Malta - country-level data from the European Quality of Life Survey (EQLS)
- Working life in Malta - key characteristic of working life across a range of parameters.
Research carried out prior to the UK’s withdrawal from the European Union on 31 January 2020, and published subsequently, may include data relating to the 28 EU Member States. Following this date, research only takes into account the 27 EU Member States (EU28 minus the UK), unless specified otherwise.
Survey results
Recent developments
Eurofound contacts in Malta
Correspondents in Malta
Correspondents report on topics related to developments in the country's working life and inform Eurofound’s pan-European comparative analysis. Read more
University of Malta (UoM)
Eurofound Management Board members from Malta
Eurofound's Management Board is made up of representatives of the social partners and national governments of all Member States, European Commission representatives and an independent expert appointed by the European Parliament. Read more
Diane Vella Muscat Department of Industrial and Employment Relations
Joe Farrugia Malta Employers Association
Joseph Bugeja General Workers' Union, UGT
Living in Malta
Quality of life
Quality of life
According to the European Quality of Life Survey (EQLS), both life satisfaction and happiness have increased in Malta between 2011 and 2016. Life satisfaction increased from 7.2 to 7.6 and happiness from 7.2 to 7.7 (on a scale of 1–10). Both of these rates are also higher than their corresponding EU28 averages. Respondents in Malta were also more optimistic in comparison to the average Europeans in 2016: 72% of respondents were optimistic about their own future, compared to an EU average of 64%, and 77% were optimistic about their children’s or grandchildren’s future, versus an EU average of 57%. In addition, both self-perceived health and the Mental Well-being Index have improved in Malta in recent years.
| 2003 | 2007 | 2011 | 2016 | ||
| Life satisfaction | Mean (1-10) | 7.3 | 7.6 | 7.2 | 7.6 |
| Taking all things together on a scale of 1 to 10, how happy would you say you are? | Mean (1-10) | 7.9 | 7.9 | 7.2 | 7.7 |
| Optimism about own future | Agree & strongly agree | - | - | - | 72% |
| Optimism about children’s or grandchildren’s future | Agree & strongly agree | - | - | - | 77% |
| Take part in sports or physical exercise | At least once a week | - | - | 34% | 37% |
| In general, how is your health? | Very good | - | 18% | 22% | 24% |
| WHO-5 mental wellbeing index | Mean (1-100) | - | 53 | 58 | 60 |
| Making ends meet | With some difficulty, difficulty, and great difficulty | 23% | 36% | 38% | 34% |
| I feel I am free to decide how to live my life | Strongly agree | - | - | 26% | 21% |
| I find it difficult to deal with important problems that come up in my life | Agree & strongly agree | - | - | - | 21% |
| When things go wrong in my life, it generally takes me a long time to get back to normal | Agree & strongly agree | - | - | - | 24% |
Work-life balance
Work-life balance
In 2016, 69% of respondents in Malta reported being too tired from work to do household jobs at least several times a month, which was higher than the corresponding EU28 average of 59%. Furthermore, 38% of respondents in Malta experienced difficulties to fulfil family responsibilities because of work at least several times a month, matching the EU28 average of38% in 2016. The least common work–life balance problem was having difficulties to concentrate at work because of family responsibilities, reported by 13% of respondents in Malta in 2016 and lower than the EU28 average of 19%.
| 2003 | 2007 | 2011 | 2016 | ||
| (At least several times a month) | |||||
| I have come home from work too tired to do some of the household jobs which need to be done | Total | 52% | 58% | 64% | 69% |
| Men | 48% | 56% | 62% | 66% | |
| Women | 60% | 64% | 68% | 73% | |
| It has been difficult for me to fulfil my family responsibilities because of the amount of time I spend on the job | Total | 27% | 29% | 36% | 38% |
| Men | 26% | 29% | 36% | 37% | |
| Women | 30% | 29% | 37% | 38% | |
| I have found it difficult to concentrate at work because of my family responsibilities | Total | 9% | 7% | 17% | 13% |
| Men | 9% | 7% | 18% | 12% | |
| Women | 11% | 5% | 15% | 15% | |
Quality of society
Quality of society
Perceived tensions between poor and rich people have fluctuated in Malta between 2003 and 2016. The share of people reporting a lot of tension between poor and rich decreased from 28% in 2003 to 14% in 2007, increased again to 28% in 2011, and subsequently dropped to 16% in 2016. This is significantly lower than the respective EU28 average, which was 29% in 2016. Similarly, the trend in tensions between different racial and ethnic groups has not been linear. The share of people reporting a lot of this type of tension decreased from 50% in 2003 to 36% in 2011, but increased substantially to 49% in 2016, rising above the EU28 average of 41%.
| 2003 | 2007 | 2011 | 2016 | ||
| Social exclusion index | Mean (1-5) | - | 2.0 | 2.4 | 2.2 |
| Trust in people | Mean (1-10) | 4.8 | 4.9 | 4.7 | 5.0 |
| Involvement in unpaid voluntary work | % 'at least once a month' | - | - | 13% | 12% |
| Tension between poor and rich people | % reporting 'a lot of tension' | 28% | 14% | 28% | 16% |
| Tension between different racial and ethnic groups | % reporting 'a lot of tension' | 50% | 43% | 36% | 49% |
| I feel safe when I walk alone after dark | Strongly agree | - | - | - | 38% |
Quality of public services
Quality of public services
Quality ratings for seven public services
Note: scale of 1-10, Source: EQLS 2016.
Many of the quality ratings for public services are higher in Malta than on average in the EU. Additionally, their perceived quality has increased during the period of observation in the EQLS. For instance, the quality of health services increased from 6.6 in 2003 to 7.8 in 2016, rising higher than the EU28 average of 6.7 in 2016 (on a scale of 1–10). Furthermore, Malta has the highest quality rating for childcare services among the EU countries, reaching 8.0 in 2016. The state pension system is the only public service where the quality rating has decreased, falling from 7.2 in 2011 to 5.8 in 2016. However, this rating is still higher than the respective EU28 average of 5.0 in 2016.
| 2003 | 2007 | 2011 | 2016 | ||
| Health services | Mean (1-10) | 6.6 | 7.0 | 7.2 | 7.8 |
| Education system | Mean (1-10) | 7.2 | 7.8 | 7.6 | 7.8 |
| Public transport | Mean (1-10) | 4.6 | 6.1 | 4.0 | 6.0 |
| Childcare services | Mean (1-10) | - | 7.8 | 7.7 | 8.0 |
| Long-term care services | Mean (1-10) | - | - | 7.3 | 7.7 |
| Social housing | Mean (1-10) | - | - | 6.5 | 7.0 |
| State pension system | Mean (1-10) | 6.7 | 6.1 | 7.2 | 5.8 |
Working life in Malta
About
- Auteur: Louis Grech
- Institution: Centre for Labour Studies, University of Malta
- Published on: woensdag, augustus 11, 2021
This profile describes the key characteristics of working life in Malta. It aims to complement other EurWORK research by providing the relevant background information on the structures, institutions and relevant regulations regarding working life. This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are updated annually.
Highlights – Working life in 2021
Highlights – Working life in 2021
Authors: Luke A. Fiorini, Saviour Rizzo
Institution: Centre for Labour Studies, University of Malta
Highlights updated on: 19 May 2022
Working paper: Malta: Working life in the COVID-19 pandemic 2021
COVID-19 case numbers were lower during the summer months of 2021 but increased again during the autumn. The number of cases escalated towards the end of the year and reached unprecedented numbers during December 2021. Hence, the government’s economic policy throughout 2021 was based on continuing the policy of containment adopted the previous year. The aim was to alleviate economic hardships and keep businesses viable throughout the crisis while making sure that workers remained on the payroll. Despite the very high uptake of COVID-19 vaccines in Malta, including booster doses, much of the discourse later in the year revolved around measures to further enhance vaccine uptake, including making vaccination mandatory. In the future, if COVID-19 remains prevalent, discussions regarding mandatory vaccination in certain sectors or jobs are likely to continue. While many employer groups appear to favour this measure, trade unions appear ambivalent – although they had campaigned to make members eligible for early vaccination, they seem to be against mandatory measures.
The COVID-19 pandemic led to a substantial increase in teleworking and this method of working remained widespread during 2021. Teleworking brought to the fore the issue of the right to disconnect. While some trade unions expressed their belief that relevant legislation should be enacted, employers were not in favour of legislative measures. The lack of consensus indicates that legislation on this issue is unlikely in the near future unless it is enforced by an EU directive.
During 2021, the labour market continued to recover, with employment levels returning to pre-pandemic levels. Furthermore, the uptake of several support measures introduced to cushion the blow of the pandemic on enterprises reduced as the year progressed. Despite this, as COVID-19 cases peaked towards the end of the year, some sectors, with the Malta Hotel and Restaurants Association (MHRA) particularly vocal, stated that it would be necessary to continue key support measures into 2022. With a general election looming in 2022, and in order to avoid discontent amongst social partners, the government is likely to accede to this request.
Labour shortages also posed a problem for some sectors. Towards the beginning of 2021, the healthcare sector haemorrhaged staff as they left for countries offering better conditions, primarily the UK. Changes in policy appear to have stemmed the tide of this exodus. Sectors such as education and restaurants were also impacted by labour shortages. The outlook for these sectors is likely to depend on COVID-19 case numbers. Low case numbers may limit the strain on human resources in education but increased tourism could lead to labour shortages in the hotel and restaurant sector during the peak summer months. High COVID-19 cases may have the opposite effects.
Sparks of industrial conflict which at times seemed imminent were often diffused by the government’s policy of involving the social partners in decision-making processes. Industrial disputes, however, took place between the government and trade unions representing front line employees, such as teachers and nurses. However, the forces that were exerted by the actors involved in these disputes did not cause any spiral fractures. The pandemic may have instilled a sense of sobriety in their mindset that made them susceptible to compromise.
This relative conciliatory tone augurs well for the steering group that has been set up by the Government to coordinate a post-COVID-19 strategy. The steering group will assess the work underway in various ministries and evaluate how it could affect the post-pandemic recovery.
Key figures
Key figures
Comparative figures on working life in Malta
|
2019 |
2020 |
% (point) change 2012 –2019 |
% (point) change 2019 –2020 |
|||||
|---|---|---|---|---|---|---|---|---|
|
Malta |
EU27 |
Malta |
EU27 |
Malta |
EU27 |
Malta |
EU27 |
|
|
GDP per capita |
21,960 |
27,970 |
19,990 |
26,230 |
29.4% |
11.5% |
-9.0% |
-6.2% |
|
Unemployment rate – total |
3.6 |
6.7 |
4.3 |
7.1 |
-2.6 |
-4.1 |
0.7 |
0.4 |
|
Unemployment rate – women |
4 |
7 |
4.4 |
7.3 |
-3.2 |
-4.0 |
0.4 |
0.3 |
|
Unemployment rate – men |
3.4 |
6.4 |
4.2 |
6.8 |
-2.2 |
-4.3 |
0.8 |
0.4 |
|
Unemployment rate - youth |
9.3 |
15 |
10.7 |
16.8 |
-4.5 |
-8.7 |
1.4 |
1.8 |
|
Employment rate – total |
75.9 |
73.4 |
77.1 |
72.9 |
12.0 |
2.4 |
1.2 |
-0.5 |
|
Employment rate – women |
65.5 |
67.9 |
67.7 |
67.5 |
16.6 |
3.0 |
2.2 |
-0.4 |
|
Employment rate – men |
85.3 |
79 |
85.5 |
78.3 |
6.8 |
1.8 |
0.2 |
-0.7 |
|
Employment rate – youth |
55.9 |
39.4 |
54.1 |
37.9 |
4.2 |
-0.4 |
-1.8 |
-1.5 |
Source: Eurostat – Real GDP per capita (chain linked volumes [2010], in EUR) and percentage change 2012–2020 (both based on sdg_08_10). Unemployment rate by sex and age – annual average (15–74 years, % active population) and youth (15–24 years) % [une_rt_a]; Employment rate by sex and age – annual average (15–64 years, unit % total population, employment indicator active population) % [lfsi_emp_a].
Background
Background
Economic and labour market context
Between 2012 and 2019, Malta's GDP increased considerably by 29.4%, above the EU27 average of 11.52% for the same period. During this time, unemployment fell for all categories and remained well below the EU average, with total unemployment at 3.6% in 2019 (the EU average was 6.7%). The largest decrease was in youth unemployment (-4.5 percentage points). Total employment in 2012–2019 increased by 12 percentage points to 75.9% and is therefore higher than the EU average of 73.4%. The largest increase in this period was in the female employment rate (16.6 percentage points). Youth employment in 2019 stood at 55.9%, above the EU average of 39.4% for that year. The Maltese economy lost its positive momentum throughout 2020 due to the COVID-19 situation in which the GDP for the third quarter of the year was 8.8% lower than the same quarter of the previous year (Eurostat naidq_10_gdp). The employment rate however remained stable. Unemployment rate increased by 0.7 pp, most notably for youth with a 1.4 pp increase. Throughout 2020, a significant number of companies mostly in the tourism industry were compelled to reduce the conditions of employment of their employees by resorting to reduced pay, reduced working hours and reduced benefits due to the economic adverse effects brought about by the pandemic (Times of Malta 2020a).
More information on:
- European Commission: EURES - living and working in Malta
Legal context
The Employment and Industrial Relations Act (EIRA), Chapter 452 of the Laws of Malta, is the main labour legislation which regulates the minimum conditions of employment, employers’ associations and trade union representation. The EIRA is complimented by a number of Legal Notices and 31 Wage Regulation Orders covering different sectors in the economy.
The introduction of new employment-related legal notices is first discussed within the Employment Relations Board (ERB), which is a national consultative body set up by the government as provided by the provisions of the EIRA. The ERB makes recommendations to the minister responsible for labour, so that issues discussed are eventually included in a national standard order or a sectoral standard order.
The provisions of the EIRA are safeguarded by the Department of Industrial and Employment Relations (DIER) mainly through the Enforcement Section and the Industrial Tribunal.
Industrial relations context
Collective bargaining in Malta is generally conducted at company level between a single trade union representing more than 50%+1 of the employees as members) and a single employer. Collective bargaining usually leads to a collective agreement. In the public service, where trade unions are traditionally stronger, a collective agreement is signed by seven trade unions. Government corporations/agencies/units are covered by separate collective agreements negotiated respectively for each body. In the absence of collective bargaining, remuneration and other conditions of employment are determined by free individual bargaining. However, the Maltese legal framework provides for a National Minimum Wage (NMW), introduced in 1974, and for 31 sectoral wage agreements by means of the Wage Regulation Orders (WROs). The WROs were composed by tripartite Wage Councils which were superseded by the Employment Relations Board in 1992. The establishment of the tripartite Malta Council for Economic Development in 1990 (which later became the Malta Council for Economic and Social Development (MCESD), facilitated a more co-operative industrial relations approach on a national level. For instance, it has led to the National Agreement on Industrial Relations (1990) establishing a mechanism based on the inflation rate, for the calculation of the yearly Cost of Living Allowance (COLA) which is granted to all employees. The National Agreement on the Minimum Wage signed between social partners in April 2017 is the most recent example of such a co-operative model.
Adherence to statutory minimum wages and collective agreements is monitored by the Department of Industrial and Employment Relations (DIER) and breaches can be investigated by the same department, and tried in front of the Industrial Tribunal, Criminal Court and Civil Court. The DIER is also involved in cases requiring conciliation, according to the Employment and Industrial Relations Act (2002).
In February 2016, the Constitutional Court ruled that the EIRA provisions for the appointment of tribunal members offer no guarantee that tribunals will be independent and impartial. Consequently, in June 2016, Act No XXXIIII of 2016 – The Employment and Industrial Relations (Amendment) Act 2016 – was enacted. Among the most important aspects of these amendments were the increase in the tenure of office of chairpersons and members to five years from the previous three-year period. They may also be reappointed for another period of five years on the approval of the Employment Relations Board. This is aimed at guaranteeing security of tenure. Cases requiring a Tribunal should be composed of three members and the member representing the government is now to be chosen by the chairperson from a list of members appointed by the minister. Prior to these amendments, the minister had the power to appoint such a member ad hoc, which could have raised the suspicion of bias, for instance, in disputes between entities in which government is the majority shareholder and trade unions.
Actors and institutions
Actors and institutions
Trade unions, employers’ organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes the European, national, sectoral, regional (provincial or local) and company levels. This section looks into the main actors and institutions and their role in Malta.
Public authorities involved in regulating working life
The main public authority for dealing with industrial relations issues is the Department for Employment and Industrial Relations (DIER) which falls under the Ministry Within the Office of the Prime Minister. The DIER incorporates: the Investigative Unit which is responsible for monitoring conditions of employment and processing complaints of workers who are still in employment or their employment has been terminated. The work of the unit includes inspections targeting particular sectors or specific complaints and makes referral of cases to the Law Courts. The DIER also provides support services to the Industrial Tribunal; is responsible for the Registrar of Trade Unions and deals with mediation and consultations in trade disputes. The DIER houses meetings of the tripartite Employment Relations Board (ERB), which discusses employment legislation and other employment matters.
The Occupational Health and Safety Authority Malta (OHSA) is the entity responsible to ensure that all levels of occupational health and safety protection established by Act XXVII of 2002 and related regulations are adhered to mainly through inspection and court action. The OHSA processes queries from employees and employers and gives advice, and publishes informative material relating to occupational health and safety.
Jobsplus is the national employment agency. Its main function is that of meeting the labour market needs of employers, jobseekers and employees, for instance by organising training schemes and job matching services. Jobsplus also regulates employment registration and among its tasks is to deal with undeclared employment and work permits.
The National Employment Commission, set up according to the provisions of the Employment Commission Act Chapter 267 of the Laws of Malta, aims to guard against discrimination in employment on political grounds.
Representativeness
The Malta Council for Economic and Social Development (MCESD) is a national tripartite body acting as an advisory council that issues opinions and recommendations to the Maltese government on matters of economic and social relevance. The Council has a distinct legal personality, is appointed by the Prime Minister and is composed of the following members: a chairperson; deputy chairperson appointed by the Prime Minister from among members of the public service; 10 people nominated by representative national employers’ and workers’ organisations constituted bodies; the Chair of the Gozo Regional Committee, ex officio; the Chair of the Civil Society Committee; two representatives of the Government, one representing the Minister responsible for Finance, the other representing the Minister; and the Governor of the Central Bank of Malta, ex officio (Source: Malta Council for Economic and Social Development Act 2001).
The Employment Relations Board (ERB) was set up following the enactment of the Employment and Industrial Relations Act 2002. The board is composed of 13 members as follows: an independent chairperson, four employers’ representatives, four employees’ representatives and four members appointed by the government. The ERB discusses employment related matters and makes recommendations to the minister responsible for labour, before the publication of any employment-related legislation.
More information on representativeness of the main social partner organisations can be found in Eurofound’s representativeness study of the cross-industry social partners or in Eurofound’s sectoral representativeness studies.
- Topic: Representativeness
Trade unions
About trade union representation
Trade unionism in Malta has maintained its significance as reflected in the table below. According to the reports issued by the Registrar of Trade Unions, trade union membership followed an upward trend from 85,239 in 2010 to 101,801 in 2019. On the other hand, when comparing these figures with the labour supply as indicated in the Gainfully Occupied Population (NSO), trade union density dropped by 11% during the same period. This drop can be attributed to a relatively sharp increase of foreign workers in recent years in Malta, whose enrolment in trade unions is difficult.
The right of employees to join a trade union is guaranteed by the principle of the right of assembly and association set out in Article 42, Chapter 4 of Constitution of Malta. Maltese trade unionism remains based on the British model, reflecting the traditions of British colonial rule. The model places high emphasis on the shop steward, who is the important link between the shopfloor and the trade union upper hierarchy. Among other roles, the shop steward carries out day to day union activities at shop floor level, including the recruitment of members. The evolution of industrial relations in Malta has led to a more cooperative scenario between stakeholders.
To be officially recognised and thus gain legal protection, a trade union must be registered by the Registrar of Trade Unions in accordance with the EIRA (Title 2, part 1). This would require a trade union to have at least seven members who are required to sign the relevant application form. In order to be officially recognised at the place of work, the practice is that a trade union must at least represent 50% + 1 of employees who are members of the union in accordance with Legal Notice 413 of 2016, namely the Recognition of Trade Unions Regulations. Nonetheless, employees in various enterprises, in particular in the public sector, set up different bargaining units and thus obtain separate recognition according to their class of employment.
In the Various Laws (Trade Union Membership of Disciplined Forces) Act 2014, members of disciplined forces are given the right to join a registered trade union of their choice. Such members are now entitled to negotiate the conditions of employment and to participate in dispute resolution procedures, although they cannot take any other form of industrial action in contemplation or furtherance of a trade dispute. These provisions came into force in 2015.
Trade union membership and trade union density
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
Source |
|
|
Trade union density in terms of active employee |
48.4% |
47.5% |
46.7% |
43.8% |
42.9% |
n.a. |
OECD/AIAS ICTWSS Database 2021 |
|
Trade union density in terms of active employees |
|
|
51% (estimate) |
49% (estimate) |
47% (estimate |
n.a. |
Reports by the Registrar of Trade Unions for the corresponding years (DIER). |
|
Trade union membership in 1000 |
83 |
85 |
88 |
90 |
92 |
92 |
OECD/AIAS ICTWSS Database 2021 |
|
Trade union membership in 1000 |
|
96,376 |
99,067 |
100,629 |
101,801 |
n.a. |
Reports by the Registrar of Trade Unions for the corresponding years. |
Main trade union confederations and federations
Malta has three trade union confederations which are the General Workers Union (GWU), the Confederation of Maltese Trade Unions (CMTU), and the Forum Unions Maltin (FORUM).
Main trade union confederations and federations
|
Long name |
Abbreviation |
Members |
Involved in collective bargaining |
|
General Workers Union |
GWU |
51,787 (2019) |
Yes* |
|
Konfederazzjoni tat-Trade Unions Maltin (Confederation of Malta Trade Unions) |
CMTU |
26,900(2019) |
Yes** |
|
Forum Unions Maltin |
FORUM |
15,800 (2019) |
Yes** |
Source: Report by the Registrar of Trade Unions
*Involvement through its autonomous sections. **Indirect involvement through member unions.
A National Trade Union Forum was launched in July 2014. It is composed of a total of 22 unions, the Office of the President and the Centre for Labour Studies at the University of Malta. The tasks of the forum include information campaigns, holding seminars and carrying out scientific research to gauge public opinion on trade unions. The forum aims to provide an opportunity for trade unions to share experiences and seek collaboration through dialogue. Among the activities carried out to date are seminars on the work of trade unions towards active aging through collective bargaining, dealing with multiple claims for trade union recognition, and the role of unions in closing the differences between workers’ rights for family-friendly measures in the public and private sectors. A national survey on trade unions in Malta was also carried out and its results discussed among trade unions (NFTU, 2015).
Employers’ organisations
About employers’ representation
To formally register a new employers’ association with the registrar of trade unions a minimum of seven members is required. Once registered, an organisation shall enjoy the rights granted by the EIRA as for instance can be able to ‘perform any act in furtherance of any of the purposes for which it is formed’ (EIRA section 51 (1)). Each year a registered employers’ association must supply the registrar of trade unions with the number of paid-up members, details of committee members, a copy of their annual report and an audited copy of their financial accounts (source DIER). Membership in employers’ associations is voluntary. According to the annual report of the registrar of trade unions 2019/2020, there were 8 employers’ associations registered with the registrar of trade unions with a total of 9,108 members. Another important employers’ organisation, the Malta Chamber of Commerce, Enterprise and Industry, is not registered with the registrar of trade unions.
Employers’ organisations – membership and density
|
2015 |
2016 |
2017 |
2018 |
2019 |
Source |
|
|
Employers’ organisation density in terms of active employees |
n.a. |
33% |
n.a. |
n.a. |
n.a |
OECD/AIAS ICTWSS Database 2021 |
|
Employers’ organisation density in private sector establishments* |
n.a |
n.a. |
n.a. |
n.a. |
9% |
European Company Survey (ECS) 2013/ 2019 |
* Percentage of employees working in an establishment which is a member of any employer organisation that is involved in collective bargaining.
Main employers’ organisations
The main employers’ associations in Malta are the Malta Employers Association, the Malta Chamber of Commerce, Enterprise and Industry and the Malta Chamber of Small and Medium Enterprises.
Main employers’ organisations and confederations
|
Long name |
Abbreviation |
Members |
Year |
Involved in collective bargaining |
|
Malta Employers Association |
MEA |
690 |
2019 |
No |
|
Malta Chamber of Commerce, Enterprise and Industry |
Malta Chamber |
800* |
2020 |
No |
|
Malta Chamber of Small and Medium Enterprises |
Malta Chamber of SME’s |
8,016 |
2019 |
No |
Source: Report by the Registrar of Trade Unions; *Malta Chamber
Tripartite and bipartite bodies and concertation
The Malta Council for Economic and Social Development acts as an advisory council that issues opinions and recommendations to the Maltese government on matters of economic and social relevance.
The Employment Relations Board makes recommendations to the Minister responsible for labour as to: any national minimum standard conditions of employment for eventual inclusion in a national standard order; any sectoral conditions of employment for eventual inclusion in a sectoral regulation order; on conditions of employment; or on any matter referred to the Board by the Minister.
In April 2017 the National Agreement on the Minimum Wage signed between social partners signalled the first revision of the minimum wage in 27 years. Minimum wage earners are now entitled to increases in their wages on completion of the first and second year of work with the same employer.
Main tripartite and bipartite bodies
|
Name |
Type |
Level |
Issues covered |
|
Malta Council for Economic and Social Development |
Tripartite |
National |
Issues of economic and social relevance including cost of living adjustments, skills, working time, unemployment, utility prices, budget proposals, etc. |
|
Employment Relations Board |
Tripartite |
National |
Wages, working time and other issues involving employment conditions including relevant legislation. |
Workplace-level employee representation
Employee representation at the workplace level is generally carried out by the shop stewards, acting on behalf of the union they represent, who are recognised in their role by their employer.
Trade unions are regulated by the EIRA 2002. The rights and obligations of the trade union and its representatives at shop-floor level are also detailed in the collective agreements.
Regulation, composition and competences of the bodies
|
Regulation |
Composition |
Competences of the body Involved in company-level collective bargaining? |
Thresholds/rules when they need to be/can be set up |
|
|
Type 1 (e.g. Works council) |
Legal Notice10 of 2006 – Employee (Information and Consultation) Regulations |
Representatives of employees who are either the recognised union representative/s or, in case of non-unionised employees, the representative or representatives elected from amongst the employees and Management Representative/s |
The exchange of views and establishment of dialogue between the employees’ representatives and the employees. The employer must provide the information and consultation representatives with information on: (a) the recent and probable development of the undertaking’s activities and economic situation; (b) the situation, structure and probable development of employment within the undertaking and on any anticipatory measures envisaged, in particular, where there is a threat to employment within the undertaking; and (c) information and consultation on decisions likely to lead to substantial changes in work organisation or in contractual relations. |
The regulations concern undertakings employing 50 employees and over. A Council should be composed of a trade union representative for each category of workers. In case of non-unionised employees the number of representatives so appointed or elected shall be of not more than one representative per unrepresented category and shall hold office for a period of three years from their date of election or appointment. |
|
Type 2 (e.g. Trade union) |
Yes, through the Employment and Industrial Relations Act 2002 (EIRA) |
A trade union must have at least seven members to be recognised by law. The practice for a trade union to be officially recognised at the place of work it must at least represent 50% + 1 of employees who are members of the union in that particular workplace. Shop floor representation is generally carried out by shop stewards, acting on behalf of the union. |
Competences include engaging in collective bargaining; engaging in industrial action in furtherance of a trade dispute; engaging in dispute resolution mechanisms. |
Yes |
Industrial action and disputes
Industrial action and disputes
Legal aspects
The EIRA provides the legal framework for the eventuality of strikes. This Act defines a trade dispute as a dispute between employers and workers, or between workers and workers, which is connected with any one or more of the following matters:
- terms and conditions of employment, or the physical conditions in which any workers are required to work;
- engagement or non-engagement, or termination or suspension of employment or the duties of employment, of one or more workers;
- allocation of work or the duties of employment as between workers or groups of workers;
- matters of discipline;
- facilities for officials of trade unions;
- machinery for negotiation or consultation, and other procedures, relating to any of the foregoing matters, including the recognition by employers or employers’ associations of the right of a trade union to represent workers in any such negotiation or consultation or in the carrying out of such procedures;
- the membership or non-membership of a worker in a particular trade union.
The law does not specifically mention the legal types of industrial action but it refers to it as an act done by a person in contemplation or furtherance of a trade dispute and in pursuance of a directive issued by a trade union, whether he belongs to it or not.
Article 63 provides immunity for Trade Unions and Employers Associations:
(1) (Subject to the provisions of subarticle (2) of this article), no action in tort or quasi-tort shall lie in respect of any act:
(a) alleged to have been done by or on behalf of a trade union or by or on behalf of an employers’ association; or
(b) alleged to be threatened or to be intended to be done as aforesaid, against the union or association in its own name, or against any members, officers or officials of the union or association on behalf of themselves and all other members of the union or association.
Article 64 (4) states that:
An act done by a person in contemplation or furtherance of a trade dispute and in pursuance of a directive issued by a trade union, whether he belongs to it or not, shall not be actionable in damages on the ground only that it consists in a breach of a contract of employment; and any act done as aforesaid, not being an act in breach of a collective agreement, or of a settlement, decision or which is still binding in accordance with the provisions of article 70 or 72, or of a decision or award of the Tribunal, shall not by itself entitle the employer to terminate the contract of employment of, or discriminate against, any person doing any such act as aforesaid, and shall not constitute a break in the service of such person.
Industrial action developments 2013–2017
|
2013 |
2014 |
2015 |
Jan 2016-May 2017 |
Jun 2017 – Dec 2017 |
|
|
Working days lost per 1000 employees |
1 |
n.a. |
|
|
0 |
|
Number of strikes |
0 |
2 |
6 |
2 |
0 |
|
Number of lock-outs |
1 |
0. |
0 |
0 |
0 |
Source: Department of Industrial and Employment Relations (Annual Reports). As from 2018 onwards, this data ceased being collected.
Dispute resolution mechanisms
Collective dispute resolution mechanisms
Part II of the EIRA deals with the voluntary settlement of disputes providing for the setup of a Conciliation Panel. In Malta, conciliation and mediation are regarded as synonymous. Where a trade dispute exists or is apprehended, the parties to the dispute may agree to refer the dispute for Conciliation. If the parties fail to nominate or to agree on the appointment of a Conciliator or where an appointed Conciliator reports a deadlock, the Director of Industrial and Employment Relations refers the matter to the Minister responsible for employment and industrial relations. The Minister may either:
- appoint a court of inquiry to enquire into and establish the causes and circumstances of the dispute; or
- following an application by both parties to the dispute, refer such a trade dispute to the Industrial Tribunal.
In cases where a voluntary settlement is reached, a memorandum with the terms of the agreement is drawn up and signed by the parties involved or their representatives. Such a settlement is binding on the parties and on the workers represented.
With regards to the Public Service the government and the trade unions agreed in the collective agreement for public service employees 2005-2010 about the setting up of a conciliatory structure. This is composed by a Chairman and two members, all three appointed by the government in consultation with the trade unions. Conciliation meetings are to be arranged prior to resorting to industrial action.
Individual dispute resolution mechanisms
Individual employees can resort to the dispute resolution services provided by the Department of Industrial and Employment Relations (DIER).
- DIER Investigative Unit: This unit investigates all types of alleged breaches relating to the conditions of employment and attempts to solve them without the need to refer such cases in front of Criminal Law Courts. Cases involving discrimination and unfair dismissal are referred to the Industrial Tribunal. Inspections at the workplaces are effected if required, and once a breach is detected it is followed up by the relevant officers. If the employer does not comply the case is referred to the Criminal Law Courts. The investigative unit also offers its services to employees after the termination of their employment. The officers in this unit discuss any alleged breach of the labour laws and regulations with the claimant and possibly also with the employer in order to find an amicable solution. Failure to find a solution would lead to the registration of a formal claim and the matter will be investigated by the officer concerned. If still no settlement is reached, the matter will be referred to the Police for Court action.
- The Industrial Tribunal: The Industrial Tribunal consists of a Chairman and two members representing workers’ interests and employers’ interests respectively in cases of industrial disputes. In cases of alleged unfair dismissal, the tribunal is solely made up of a Chairman. Its decisions are binding and may not be appealed against for a period of at least one year, while in cases of unfair dismissals, the rulings may provide for the reinstatement or award compensation of the employee concerned.
Use of dispute resolution mechanisms
Conciliations
|
2015 |
Jan 2016-May 2017 |
Jun 2017 – Dec 2017 |
2018 |
2019 |
|
|
Conciliations and the settlement of trade disputes |
37 |
50 |
8 |
35 |
40 |
|
Agreement reached |
37 |
40 |
7 |
26 |
32 |
|
Referred to Industrial Tribunal |
1 |
- |
- |
1 |
1 |
|
Agreement failed |
4 |
10 |
1 |
8 |
7 |
Source: Department of Industrial and Employment Relations – Annual Reports for the corresponding years
New cases before the Industrial Tribunal
|
Type |
2015 |
Jan 2016 –May 2016 |
Jan 2017 –May 2017 |
2018 |
2019 |
|
Alleged unfair dismissal |
85 |
97 |
40 |
80 |
83 |
|
Alleged unfair dismissal and alleged discrimination |
- |
- |
- |
13 |
14 |
|
Alleged discrimination/harassment/victimisation |
16 |
17 |
3 |
11 |
7 |
|
Trade disputes |
3 |
2 |
4 |
1 |
3 |
|
Other cases in terms of the Act |
8 |
2 |
1 |
0 |
0 |
Source: Department of Industrial and Employment Relations – Annual Reports for the corresponding years
Individual employment relations
Individual employment relations
Individual employment relations are the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over the terms and conditions governing the employment relationship. This section looks into the start and termination of the employment relationship and entitlements and obligations in Malta.
Start and termination of the employment relationship
Requirements regarding an employment contract
The Employment and Industrial Relations Act 2002 (EIRA) defines a ‘contract of service’ and ‘contract of employment’ as ‘an agreement, (other than service as a member of a disciplined force) whether oral or in writing, in any form, whereby a person binds himself to render service to or to do work for an employer, in return for wages, and, in so far as conditions of employment are concerned, includes an agreement of apprenticeship’. This definition recognises a verbal agreement as enforceable by law. However, in those cases where no written contract of employment has been signed between the employee and the employer, the latter is bound to give the employee a signed statement indicating the basic conditions of employment as provided by Legal Notice 431 of 2002 – Information to Employees Regulations, 2002. The signed statement should include the following information: The date of commencement of employment; the period of probation; the normal rates of wages payable; the overtime rates of wages payable; the normal hours of work; the periodicity of wage payments; in the case of a fixed or definite contract of employment, the expected or agreed duration of the contract period; the paid holidays, and the vacation, sick and other leave to which the employee is entitled; the conditions under which fines may be imposed by the employer; the title, grade, nature or category of work for which the employee is employed; the notice periods to be observed by the employer and the employee should it be the case; the collective agreement, if any, governing the employee’s conditions of work; and any other relevant or applicable condition of employment. The signed statement or the contract of employment must be issued within eight working days from the commencement of employment (or from the date of commencement of the contract of employment).
The minimum working age is 16. The Director of Industrial and Employment Relations can issue an authorisation for the employment of minors under 16 years if (a) an exemption certificate, obtainable from the Directorate for Educational Services (DES) is produced and (b) The employer has carried out a risk assessment to confirm that the work is not dangerous for the minor. Commencement of employment must be registered at Jobsplus.
Dismissal and termination procedures
Dismissal and termination procedures are regulated by section 36 of the Employment and Industrial Relations Act, 2002 (EIRA).
If the employment is terminated during a probationary period, a one week’s notice applies if the length of service is longer than one month.
After the expiry of the probation period, the notice period increases according to the length of employment, up to a maximum of 12 weeks after 10 years in employment. Longer periods may be agreed by the employer and employee in the case of technical, administrative, executive or managerial posts.
If on his/her own free will, the employee fails to give notice or does not work all the notice period, the employee is obliged to pay a sum equivalent to half of the wages due for the notice period not worked. If the employer does not allow the employee to work all or part of the notice period, the employer is obliged to pay a sum equivalent to the full wage due for the notice period not worked.
If the employment is terminated due to a justified cause such as an illness, the notice due is waived.
When an employer terminates employment due to redundancy, the employee can refuse to work the notice period or part of it, and the employer shall still have to pay the employee a sum equivalent to half of the wages due for the notice period not worked. If the employer does not allow the employee to work all or part of the notice period, the employer is obliged to pay a sum equivalent to the full wage due for the notice period not worked.
Should a post made redundant be available again in a period of one year, the employer is obliged to offer the job to the redundant employee.
An employer can dismiss an employee for a ‘good and sufficient cause’, and if the cause is valid then the notice due is waived. If an employee feels that he was unjustly dismissed he/she can initiate proceedings in front of the Industrial Tribunal on grounds of unfair dismissal, by means of a referral in writing consisting of a declaration stating the facts of the case. The referral must be produced within four months from the effective date of the alleged breach.
If a fixed term contract of employment is terminated after the expiry of the probation period without good reason, the party who breaches the contract is liable to pay the other party a sum equal to half the full wages that would have accrued had the contract of employment remained in force.
In redundancy situations the employer must follow the procedure of last in/first out in the same category, regardless of whether an employee is on an indefinite or fixed term contract. This procedure does not apply in cases involving businesses that are neither a limited liability company nor a statutory body, if the next in line for redundancy is a blood relative of the employer up to the third degree.
If a contract of service is terminated after the expiry of one month, the employee has the right to ask the employer for a certificate stating the duration of the employment, the nature of the work or services performed and, if the employee so desires, the reason for the termination of the contract and the rate of pay. However, the employer is not obliged to state the reason for termination of employment if the employment was terminated during probation.
In cases involving collective redundancies the employer must follow the procedures set out in Legal Notice 428 of 2002 – the Collective Redundancies (Protection of Employment) Regulations.
The dismissal and termination procedures in the public service are regulated by Legal Notice 66 of 2017 (Constitution of Malta) namely the Public Service Commission Disciplinary Regulations, 2017, by the Public Service Management Code and by the Collective Agreement for Public Service Employees 2017-2024.
Entitlements and obligations
Parental, maternity and paternity leave
According to the Family Friendly Measures Report 2019 relating to the Public Service issued by the Institute for Public Service, the percentage of men utilising paternity leave in 2019 decreased by 31.25% over the previous year. Utilisation of Parental Leave also decreased among both male (-18.18%) and female (-15.42%) public officers. Likewise, there was a 4.5% decrease in the uptake of the first 14 weeks of Maternity Leave while on the other hand a 1.94% increase was registered in officers availing themselves of the additional 4 weeks maternity leave over the preceding year.
Statutory leave arrangements
|
Maternity leave |
|
|
Maximum duration |
18 weeks, six of which must be availed of immediately after the date of confinement. Another four weeks are to be taken immediately before the expected date of confinement, unless agreed otherwise between the employer and the employee. The employee can choose to take the remaining balance of entitlement in whole or in part, either immediately before or immediately after the mentioned periods. Fathers cannot avail of maternity leave. This entitlement was granted also to employees who adopt a child with the enactment of Legal Notice |
|
Reimbursement |
14 weeks at the normal rate of pay, four weeks paid at the rate of €179.33 per week (in 2020) as established by the Social Security Act. |
|
Who pays? |
The employer is obliged to pay for the first 14 weeks of maternity leave. The employee may be entitled to payment for the remaining four weeks from Social Services if they fulfil the conditions set out in the Social Security Act. |
|
Legal basis |
Legal Notice 439 of 2003 – Protection of Maternity (Employment) Regulations |
|
Parental leave |
|
|
Maximum duration |
Both male and female workers have the individual right to take care of a child for a period of four months until the child has attained the age of eight years. Parental leave can be taken in fixed periods of one month each. Collective agreements may offer a better parental leave entitlement that the one provided by these regulations (e.g. public service employees are entitled to a maximum of one year’s parental leave for each child). In all cases, there are no mandatory periods for fathers. |
|
Reimbursement |
Unpaid |
|
Who pays? |
Unpaid |
|
Legal basis |
LN 225 of 2003 - Parental Leave Entitlement Regulations |
|
Paternity leave |
|
|
Maximum duration |
In the private sector Paternity leave (Birth Leave) entitlement for fathers is linked with the birth of a child and is granted according to the relevant Wage Regulation Order pertaining to a particular sector. In cases where the type of activity of work does not fall under the remit of any Wage Regulation Order Birth Leave is regulated by Legal Notice 432 of 2007 - Minimum Special Leave Entitlement Regulations and which amounts to one working day of paid leave. Collective agreements may offer a better entitlement than the one provided by legislation. In the public sector, entitlement is 5 days paid leave. |
|
Reimbursement |
Paid at normal rate |
|
Who pays? |
Employer |
|
Legal basis |
Wage Regulation Orders; LN 432 of 2007 - Minimum Special Leave Entitlement Regulations; Office of the Prime Minister Circular No.23/1979 (Public Sector) |
|
Vacation leave |
|
|
Maximum duration |
2021 – Employees on a 40-hour working week are entitled to 216 hours of annual vacation leave. This entitlement includes 24 hours in lieu of three Public Holidays that fall on weekends in 2021. Employees working less than 40 hours a week such as part-timers and those on a reduced hour schedule are entitled to pro-rata leave entitlement. |
|
Reimbursement |
Paid at normal rate |
|
Who pays? |
Employer |
|
Legal basis |
LN 247 of 2003 - Organisation of Working Time Regulations; L.N. 271 of 2018 - Annual Leave National Standard Order, 2018 |
|
Injury leave |
|
|
Maximum duration |
1 year |
|
Reimbursement |
Paid at normal rate |
|
Who pays? |
The employer pays the normal rate, less the full amount of any injury benefit to which the employee may be entitled under the Social Security Act |
|
Legal basis |
LN 432 of 2007 - Minimum Special Leave Entitlement Regulations |
|
Marriage leave |
|
|
Maximum duration |
Varies according to the relevant Wage Regulation Order (WRO) that regulates the specific sector of industry and collective agreements. Employees who are not covered by a WRO or collective agreement are entitled to 2 working days paid at normal rate. |
|
Reimbursement |
Paid at normal rate |
|
Who pays? |
Employer |
|
Legal basis |
LN 432 of 2007 - Minimum Special Leave Entitlement Regulations |
|
Jury service leave |
|
|
Maximum duration |
For as long as necessary to attend the court on such service |
|
Reimbursement |
Paid at normal rate |
|
Who pays? |
Employer |
|
Legal basis |
LN 432 of 2007 - Minimum Special Leave Entitlement Regulations |
|
Court witness leave |
|
|
Maximum duration |
All working time during which employees in the hospital and clinics sector are required to attend at court as witnesses in police cases |
|
Reimbursement |
Paid at normal rate |
|
Who pays? |
Employer |
|
Legal basis |
LN 115 of 197 - Hospitals and Clinics Wages Council Wage Regulation Order |
|
Quarantine leave |
|
|
Maximum duration |
Any period of quarantine as may be determined by the Superintendent of Public Health or by any other public authority |
|
Reimbursement |
Paid at normal rate |
|
Who pays? |
Employer |
|
Legal basis |
LN 432 of 2007 - Minimum Special Leave Entitlement Regulations |
|
Bereavement leave |
|
|
Maximum duration |
Varies according to the relevant Wage Regulation Order (WRO) that regulates the specific sector of industry and collective agreements. Employees who are not covered by a WRO or collective agreement are entitled to 1 working day paid at normal rate. |
|
Reimbursement |
Paid at normal rate |
|
Who pays? |
Employer |
|
Legal basis |
LN 432 of 2007 - Minimum Special Leave Entitlement Regulations |
Sick leave
The Sick leave entitlement of an employee varies according to the relevant Wage Regulation Order regulating the specific sector. If the type of activity of work does not fall under the remit of any Wage Regulation Order, the sick leave entitlement of an employee is covered by Legal Notice 432 of 2007 – Minimum Special Leave Entitlement Regulations and which amounts to two working weeks per year. Sick leave has to be covered by a medical certificate which has to be presented to the employer. If an employee remains sick and exceeds three continuous working days on sick leave, the employer will deduct the sickness benefit from the Social Security to which the employee may be entitled from the fourth day onwards (in case of continuous sick leave). If an employee remains sick after having exhausted all the sick leave entitlement, s/he will only continue to receive the Sickness benefit from the Social Security to which s/he may be entitled. The law does not specify the relationship between exhaustion of the sick leave entitlement and the termination of an employment contract. In all cases, if an employee feels that he was unfairly dismissed he/she can present the case in front of the Industrial Tribunal. If an employee’s contract is terminated for whatever reason and there are still pending payments including those relating to sick leave to be settled by the employer, the employee may register a claim with the investigative unit at the DIER to recover such payments.
Retirement age
In 2006, amendments to the Social Security Act raised the retirement age from 61 to 65 years for both sexes. A person can still retire at the age of 61, if they have paid 35 years of NI contributions and was born between 1952 and 1961. Those who were born between 1962 and 1968 must have 40 years of paid NI contributions, while those born after 1968 must have 41 years of such contributions to be able to retire at the age of 61. Notwithstanding, someone who chooses to retire at 61 cannot work and receive the state pension until they reach 65 years of age.
Pay
Pay
Pay: For workers, the reward for work and main source of income; for employers, a cost of production and focus of bargaining and legislation. This section looks into minimum wage setting in Malta and guides the reader to further material on collective wage bargaining.
The average monthly basic wage increased by 26.5% between the 2nd quarter of 2012 and the corresponding quarter in 2019. Whereas the wage of males registered a 27.2% increase, that of females increased by 28.4%. Statutory wage increments are based on the cost-of-living adjustment mechanism (COLA), although a national agreement on raising the minimum wage (over and above the COLA) was reached between social partners in 2017. In 2019, Malta continued to register a positive economic growth with a 3.6% unemployment rate which is one of the lowest among EU Member States. While this economic growth also led to higher skill shortages in the labour market, wage growth in return is considered to have been quite a moderate one. This may be attributed to an increase in the labour supply – mostly due to an influx of foreign workers.
Average monthly basic wage per worker – annual average
|
|
2012 |
2019 |
|||
|
NACE |
|
Men |
Women |
Men |
Women |
|
A |
Agriculture, forestry and fishing |
n/a |
n/a |
n/a |
n/a |
|
B,C,D,E |
Mining and quarrying; Manufacturing; Electricity, gas, steam and air conditioning supply; Water supply; sewerage, waste management and remediation activities. |
€1,342 |
€1,119 |
€1,852 |
€1,158 |
|
F |
Construction |
€1,192 |
n/a |
€1,577 |
n/a |
|
G,H,I |
Wholesale and retail trade, repair of motor vehicles and motorcycles; Transportation and storage; Accommodation and food service activities |
€1,240 |
€879 |
€1,565 |
€1,053 |
|
J |
Information and communication |
€1,747 |
n/a |
€2,167 |
€1,588 * |
|
K |
Financial and insurance activities |
n/a |
€1,559 |
€2,389 |
€1,768 |
|
L |
Real estate activities |
n/a |
n/a |
n/a |
n/a |
|
M,N |
Professional, scientific and technical activities; Administrative and support service activities. |
€1,476 |
€1,186 |
€1,495 |
€1,626 |
|
O,P,Q |
Public administration and defence, compulsory social security; Education; Human health and social work activities. |
€1,476 |
€1,229 |
€1,766 |
€1,659 |
|
R,S,T,U |
Arts, entertainment and recreation; Other service activities; Activities of households as employers, undifferentiated goods – and services – producing activities of households for own use; Activities of extraterritorial organisations and bodies. |
n/a |
n/a |
€2,215 |
€1,416 * |
* under represented.
Table adapted from Labour Force Survey published by the National Statistics Office: News Release 183/2013 and News Release 156/2020
Minimum wages
Malta has a statutory minimum wage which is established by Subsidiary Legislation 452.71, namely the National Minimum Wage National Standard Order. Moreover, the minimum wages of 31 different sectors are regulated by corresponding Wage Regulation Orders which may be slightly higher than what is established by the NMW.
The minimum wage is set according to the cost of living and inflation rates of the preceding twelve months as per Subsidiary Legislation 452.65. Minimum wage levels are adjusted on an annual basis and are based on an eight-hour working day. The Cost of Living Adjustment (COLA) is a result of the National Agreement on Industrial Relations signed on 10 December 1990 between the Government, Trade Unions and Organisations of Employers, represented on the Malta Council for Economic Development.
In April 2017, Malta’s social partners signed a National Agreement on the Minimum Wage. The agreement became effective through Legal Notice 144 of 2017 and it provides for a gradual increase of the minimum wage based on a three-year period over and above the COLA. Moreover, the government announced that a mechanism shall be set up to advise the government about minimum wage increases every four years although no details about its composition were given yet. Legal Notice 350 of 2019 stipulated a cost-of-living wage increase of €3.49 per week for 2020.
Weekly Minimum Wage
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
|
18 years |
€166.26 |
€168.01 |
€169.76 |
€172.51 |
€175.84 |
€179.33 |
|
17 years |
€159.48 |
€161.23 |
€162.98 |
€165.73 |
€169.06 |
€172.55 |
|
Under 17 years |
€156.64 |
€158.39 |
€160.14 |
€162.89 |
€166.22 |
€169.71 |
Source: National Minimum Wage National Standard Orders 2015–2019
For more information regarding the level and development of minimum wages, please see:
- Eurofound publication series: Minimum wages in the EU
- Eurostat: Minimum wage statistics
Collectively agreed pay outcomes
For more detailed information on the most recent outcomes in terms of collectively agreed pay, please see:
- Topic: Collective bargaining
According to the Economic Survey 2019 issued by the Ministry of Finance (through an analysis based on collective agreements of a representative sample of companies deposited within the Department of Industrial and Employment Relations), the collectively agreed weekly wage increased by €9.57 or 2.4% between August 2018 and August 2019.
Working time
Working time
Working time: ‘Any period during which the worker is working, at the employer’s disposal and carrying out his activities or duties, in accordance with national laws and/or practice’ (Directive 2003/88/EC). This section briefly summarises regulation and issues regarding working time, overtime, part-time work as well as working time flexibility in Malta.
Working time regulation
Working time in Malta is set by the Organisation of Working Time Regulations, Legal Notice 247 of 2003, by sectoral Wage Regulation Orders, and collective agreements which are generally conducted at a company level. Generally, the normal hours of work of a full-time employee are 40 hours a week.
For more detailed information on working time (including annual leave, statutory and collectively agreed working time), please consult:
- Topic: Working time
Overtime regulation
The Employment and Industrial Relations Act 2002 (EIRA) defines ‘overtime’ as any hours of work in excess of the normal hours of work.
The minimum overtime rates in most sectors are stipulated in the respective Wage Regulation Order (WRO) that regulates their work activity. On the other hand, the overtime rates of those employees that are not covered by a Wage Regulation Order are regulated by Legal Notice 46 of 2012, namely the Overtime Regulations. This legal notice states that these employees are to be paid one and a half times the normal rate for work carried out in excess of a 40-hour week, averaged over a four week period or over the shift cycle at the discretion of the employer.
The Organisation of Working Time Regulations, Legal Notice 247 0f 2003, gives the employee the right not to choose to work more than an average of 48 hours a week as prescribed by the regulations. Employees will be obliged to work overtime in excess of this average if they have given their consent in writing under the conditions stipulated by these regulations. The Protection of Maternity (Employment) Regulations, gives the right to employees to refuse to work overtime during pregnancy, or for a period of twelve months from either the birth of his or her child or from the effective date of the adoption of a child.
Generally, overtime is compensated as follows: any hours in excess of an eight-hour working day or of a 40-hour week – time and a half; any hours worked on a Sunday or public holiday, double time. However, as stated above, these rates vary in line with the Wage Regulation Order covering a particular sector.
Individual Contracts may contain clauses setting the rate of an allowance which also covers any overtime that may be worked. This can be done as long as the rate agreed is not below the minimum rates of pay set by the relevant legislation. Overtime rates in collective agreements usually reflect the rates set by legislation.
Part-time work
The Employment and Industrial Relations Act 2002 (EIRA) defines a part-time employee as an employee whose normal hours of work, calculated on a weekly basis or on an average over a period of employment of up to one year, are less than the normal hours of work of a comparable whole-time employee who is not a whole-time employee with reduced hours. Part-time work is regulated by Legal Notice 427 of 2002, namely the Part-time Employees Regulations. These regulations
… provide for the removal of discrimination against part-time workers and to improve the quality of part-time work; and to facilitate the development of part-time work and to contribute to the flexible organisation of working time taking into account the needs of employers and workers.
Among other things, this legal notice grants part-time workers all entitlements enjoyed by a comparable whole-time employee, such as holiday leave, sick leave and statutory bonuses on a pro-rata basis. In 2019 a decrease was registered in the proportion of part-time employment on total employment. When compared to 2012, the rate went down by 0.6 pp. The proportion of both women and men working part time remains well below the EU27 average.
Persons employed part time in Malta and EU27 (% of total employment)
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
|
Total (EU27) |
18.2 |
18.1 |
18 |
17.8 |
17.8 |
16.6 |
|
Total (Malta) |
13.5 |
13.1 |
12.8 |
12.3 |
11.6 |
10.7 |
|
Women (EU27) |
30.2 |
30 |
29.8 |
29.5 |
29.4 |
27.6 |
|
Women (Malta) |
25.7 |
25 |
23.6 |
21.5 |
20.6 |
19.9 |
|
Men (EU27) |
8 |
7.9 |
7.9 |
7.7 |
7.8 |
7.2 |
|
Men (Malta) |
5.7 |
5.3 |
5.6 |
6 |
5.5 |
4.3 |
Source: Eurostat Labour Force Survey [lfsi_pt_a] – Persons employed part-time (20 to 64 years of age) – total and by sex.
Involuntary part-time
Involuntary part-time workers can be defined as those working part-time because they could not find a full-time job.
Persons employed in involuntary part-time in Malta and EU27 (% of total part-time employment)
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
|
Total (EU27) |
32.3 |
31 |
29.7 |
28 |
26.5 |
25 |
|
Total (Malta) |
15.9 |
11.8 |
11 |
10.1 |
8.2 |
7.1 |
|
Women (EU27) |
28.8 |
27.7 |
26.4 |
25.2 |
23.9 |
22.5 |
|
Women (Malta) |
11.2 |
8 |
7.3 |
7 |
5.4 |
4.4 |
|
Men (EU27) |
43.6 |
41.8 |
40.4 |
37.2 |
34.9 |
33.1 |
|
Men (Malta) |
29.7 |
23.6 |
21.3 |
17.8 |
15.4 |
15.6 |
Source: Eurostat Labour Force Survey [lfsa_eppgai]- involuntary part-time employment as a percentage of the total part-time employment, by sex and age (20 to 64 years of age)
The rate of involuntary part-time employment in Malta is quite positive when compared to the EU27 average. The low rate of unemployment in Malta could be a major contributing factor reflected in the figures..
Night work
A night worker is defined as a worker who works at least three hours of his/her daily working time as a normal course in the hours between 22.00 of any one day and 06.00 of the next day or works more than 50% of his/her annual working time in the hours between 22.00 of any one day and 06.00 of the next day. In the latter scenario, a collective agreement may provide for a lower proportion.
Shift work
The regulations define shift work as ‘any method of organising work in shifts, whereby workers succeed each other at the same work stations according to a certain pattern, including a rotating pattern, and which may be continuous or discontinuous, entailing the need for workers to work at different times over a given period of days or weeks’. Certain Work Regulation Orders provide for the entitlement of a shift allowance.
Weekend work
There is no definition of weekend work in the labour legislation. However, most Wage Regulation Orders provide for the payment at a double rate for all hours worked on a Sunday.
Rest and breaks
The Organisation of Working Time Regulations define a ‘rest period’ as any period which is not working time and which does not include leave to which a worker is entitled. Rest Breaks: In cases where the working day exceeds six hours, at least fifteen minutes of rest are to be granted to the worker. Daily Rest: Workers are entitled to a minimum daily rest period of 11 consecutive hours between working days. Weekly rest period: Workers are entitled to an uninterrupted weekly rest period of 24 hours in addition to the 11 hours daily rest within a seven-day period, or 48 consecutive hours in a period of fourteen days in addition to the 11 hours daily rest. Exemptions: Legal Notice 247 of 2013 provides that in certain circumstances specified by the law, a worker may not avail of the full rest period. In such case, however, the regulations provide that equivalent compensatory rest periods are given to the said worker at times immediately following the corresponding periods worked. The regulations prohibit the practice of substituting rest periods with monetary compensation.
Working time flexibility
Employment legislation does not deal specifically with flexible working hours. The EIRA defines a whole-time employee, a whole-time employee with reduced hours and an employee with part-time employment. Flexible working hours are dealt with in clauses in collective and individual agreements. For instance, the collective agreement for public service employees (2011–2016) provides for flexible working hours schedules. In 2019, there were 1172 public service employees opting for flexi-time, 59.6% of whom were females (Institute for Public Services, 2020).
The adoption of flexible working arrangements in the private sector has gained importance in the last years, as indicated in the annual survey carried out by MISCO about HR developments in Malta. For instance, in 2018, 75% of the employers interviewed offered their employees the options of part time work and reduced hours, 71% offered flexi hours and 52% offered work from home or remote working (MISCO, 2018). In 2000, the number of respondents who offered the option of remote working and flexi hours to employees went up to 74%. This increase was fuelled by the restrictions brought about by COVID 19 (MISCO, 2020).
Health and well-being
Health and well-being
Maintaining health and well-being should be a high priority for workers and employers alike. Health is an asset closely associated with a person’s quality of life and longevity, as well as their ability to work. A healthy economy depends on a healthy workforce: organisations can experience loss of productivity through the ill-health of their workers. This section looks into psychosocial risks and health and safety in Malta.
Health and safety at work
Trends in injuries at work (National Data)
|
Year |
Labour Force Survey |
Injuries at Work |
Injuries per 100,000 workers |
Fatalities at work |
Fatalities per 100,000 workers |
|
2015 |
198,3222 |
3,112 |
1,569 |
5 |
2.5 |
|
2016 |
208,132 |
3,220 |
1,547 |
7 |
3.4 |
|
2017 |
220,489 |
3,182 |
1,443 |
1 |
0.5 |
|
2018 |
234,138 |
3,252 |
1,389 |
4 |
1.7 |
|
2019 |
251,398 |
3,220 |
1,281 |
3 |
1.2 |
Source: Occupational Health and Safety Authority, Annual Report 2019.
Accidents at work, with four days’ absence or more – working days lost
|
2015 |
2016 |
2017 |
2018 |
2019 |
|
|
All accidents |
1,939 |
1,476 |
1,544 |
1,696 |
N/A |
|
Percent change on previous year |
-14.7 |
-23.9 |
4.6 |
9.8 |
N/A |
|
Per 1,000 employees |
12.2 |
8.4 |
8.3 |
8.4 |
N/A |
Source: Eurostat, [hsw_mi01] and [lfsa_eegaed]
Psychosocial risks
Legislation on psychosocial matters is limited, with most health and safety legislation focusing on physical matters. The following are a few exceptions which refer to psychosocial matters.
The Occupational Health and Safety Authority Act (Chapter 424 of the laws of Malta) refers to psychosocial risks at work in section 4(2), which states that:
The Authority established by virtue of this Act shall be responsible for ensuring that the physical, psychological and social wellbeing of all workers in all workplaces are promoted and to ensure that they are safeguarded by whoever is so obliged to do.
Section 6 (2) of the same act provides the following:
The measures that need to be taken by an employer to prevent physical and psychological occupational ill- health, injury or death, shall be taken on the basis of the following general principles of prevention, that is by:
(a) the avoidance of risk;
(b) the identification of hazards associated with work;
(c) the evaluation of those risks which cannot be avoided;
(d) the control at source of those risks which cannot be avoided;
(e) the taking of all the necessary measures to reduce risk as much as reasonably practicable, including the replacement of the hazardous by the non-hazardous or by the less hazardous;
(f) giving collective protective measures priority over individual protective measures;
(g) adapting the work to the worker, particularly in so far as the design of work places, the choice of work equipment and the choice of working and production methods are concerned, in particular with a view to alleviating monotonous work and work at a predetermined work-rate, and to reducing their effect on health;
(h) by adapting to technical progress in the interest of occupational health and safety; and
(i) by the development of a coherent overall prevention policy which covers technology, the organisation of work, working conditions, social relationships and the influence of factors related to the working environment.
The People Support and Well-being Directorate within the public service adopts an Employee Support Programme (ESP) that aims to support public employees experiencing personal, emotional and/or behavioural problems which interfere with their work–life balance. This initiative indicates an increasing awareness on the importance of psychological well-being at the workplace. A study conducted in March 2020 by MISCO found that 67% of workers across various sectors suffered from mental health issues due to their work, mostly due to anxiety and stress (Times of Malta 2020b).
For more detailed information on health and well-being at work, please consult:
Skills, learning and employability
Skills, learning and employability
Skills are the passport to employment; the better skilled an individual, the more employable they are. Good skills also tend to secure better-quality jobs and better earnings. This section briefly summarises the Maltese system for ensuring skills and employability and looks into the extent of training.
National system for ensuring skills and employability
Lifelong Learning (DRLLE), is a directorate within the Ministry of Education which offers policy guidance on lifelong learning and initiatives for Early School Leavers. DRLLE also organises around 400 adult courses in 77 different subjects, including vocational ones.
National Skills Council was established in 2016 by means of Legal Notice 278 of 2016. The council is made up of a representative appointed by each of the following stakeholders: University of Malta; Malta College for Arts, Science and Technology; Jobsplus; Institute for Tourism Studies; Malta Chamber of Commerce, Enterprise and Industry; Malta Enterprise; a representative of civil society; a representative from amongst lifelong learning specialists; and the Permanent Secretary of the Ministry for Education. Besides a maximum of four other persons are appointed by the Minister of Education. It has the role to identify, anticipate and minimise skill gaps in particular in sectors of significant importance for the Maltese economy. The Council recommends changes required in the relating policy to government.
Training
Jobsplus, Malta’s employment services organisation, is the main entity that recommends policies and implements initiatives to assist jobseekers enter or re-enter the active employment market. It provides various initiatives targeted at specific categories, such as young new entrants, older workers and disadvantaged groups, to develop their skills and competency. Jobsplus also assists employers in their recruitment and training needs.
The University of Malta and the Malta College of Arts, Science and Technology are the largest higher education institutions in Malta. They provide courses at various levels to thousands of students, thereby increasing the overall skills levels in Malta and helping to satisfy the changing needs of the labour market.
The National Commission for Further and Higher Education (NCFHE) is responsible for the implementation of the national Qualifications Framework, quality assurance and qualifications recognition as part of the Bologna and Copenhagen Processes. NCFHE is also responsible for the creation of sector skills units, with the objective of ensuring the consistency and relevance of occupational standards within the sectors. Social partners are present in these units, which also have the objective to reduce skills gaps and skills shortage and to improve the skills and productivity of the workforce in the sector.
Work organisation
Work organisation
Work organisation underpins economic and business development and has important consequences for productivity, innovation and working conditions. Eurofound research finds that some types of work organisation are associated with a better quality of work and employment. Therefore, developing or introducing different forms of work organisation are of particular interest because of the expected effects on productivity, efficiency and competitiveness of companies, as well as on workers’ working conditions. Ongoing research by Eurofound, based on EurWORK, the European Working Conditions Survey and the European Company Survey, monitors developments in work organisation.
For more detailed information on work organisation, please consult:
- Topic: Work organisation
- Survey: European Working Conditions Survey (EWCS) 2015
- Survey: European Company Survey (ECS) 2019
For Malta, the European Company Survey 2019 shows that establishments in Malta fared well with regards to introducing innovation (45%). Likewise with regards to digitalisation they were among the high flyers. For instance, Malta was among those countries that achieved the highest score in ‘Type of Establishment – Digitalisation’ with 39% responding ‘highly digital’. Moreover, 57% reported that 80% or more of their employees use personal computers or laptops to carry out their daily tasks.
On the downside, the Annual Survey on HR Developments in Malta 2019 conducted and published by MISCO indicates that HRM is not given importance among Maltese Employers. For instance, 40% of the employers interviewed mentioned that the value of the HR section is not appreciated by the rest of management. 49% of respondents find it difficult to set up an effective performance management system with 40% saying that they are constrained by an inadequate HR budget.(MISCO, 2019).
Equality and non-discrimination at work
Equality and non-discrimination at work
The principle of equal treatment requires that all people, and in the context of the workplace all workers, have the right to receive the same treatment, and will not be discriminated against on the basis of criteria such as age, disability, nationality, sex, race and religion.
Legal Notice 461 of 2004, Equal Treatment in Employment provides the legal basis for equality and non- discrimination at work. The Department of Industrial and Employment Relations (DIER) is the body entrusted with ensuring equality at work. Claims by persons involving discriminatory treatment, whether direct or indirect, in relation to employment are dealt with by the Industrial Tribunal.
Equal pay and gender pay gap
Legal Notice 461 of 2004, Equal Treatment in Employment (paragraph 3A) provides for the principle of equal pay for equal work.
In 2018, the gender pay gap in unadjusted form in Malta was 13%, which compares positively to the EU28 countries (Eurostat SDG_05_20). Malta does not have any specific legislative support measures for addressing the gender pay gap or any particular (re-occurring) social partner initiatives aimed at this goal.
Quota regulations
There are no legal obligations establishing quotas for women’s membership of public/private sector supervisory boards.
Notable measures on the topic include:
- the Labour Party’s proposal in its electoral manifesto of 2017 to have ‘40% of Government entity boards composed of the underrepresented sex’
- the proposed provision regarding a gender balance of at least 40%-40% in public bodies in the Equality Bill (Bill no. 96) that is currently being discussed at Parliamentary Committee stage.
The National Commission for the promotion of Equality (NCPE) launched a Directory of Professional Women to identify qualified women in various fields by listing the qualifications, experience and skills of professional women and this can be a useful tool for their consideration in boards, committees and other decision-making positions. Moreover, in May 2016, a mentoring programme was launched to support women aspiring to hold decision-making positions. A research study about Gender–balanced representation in decision-making that was published in December 2015 indicated that while women are under-represented in board rooms and decision-making positions, the majority of women still feel that they work in an environment which promotes gender equality.
The Disabled Persons (Employment) Act - Act No. II of 1969, Chapter 210 of the Laws of Malta compels companies that employ not less than 20 employees to employ a quota of disabled persons, chosen from the register of persons with disability. The percentage is established by the Minister responsible through a legal notice, after consultation with Jobsplus.
Legal Notice 157 of 1995, the Standard Percentage of Employment of Persons with Disability Order, sets the standard percentage at 2%. In April 2016, government and employers' associations signed a memorandum of understanding on the implementation of this threshold. Moreover in 2019 a five agreement was signed between Agenzija Sapport which is the national agency for persons with disability and Malta Employer's Association in order to facilitate the employment of persons with disability. Through this agreement, employers shall be provided with services and training, as to support them in employing persons with disabilities.
Working life links
Working life links
Employers
- Malta Chamber of Commerce, Enterprise and Industry
- Malta Chamber of Small and Medium Enterprises
- Malta Employers’ Association
Trade Unions
- General Workers’ Union
- Union Haddiema Maghqudin
- For.U.M. Unions Maltin
- Malta Union of Teachers
- Malta Union of Bank Employees
- Malta Union of Midwives and Nurses
Government
Bibliography
Bibliography
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Eurofound (2020b), Minimum Wages in 2020: Annual review , Publications Office of the European Union, Luxembourg.
Eurofound (2020c), Collective agreements and bargaining coverage in the EU: A mapping of types, regulations and first findings from the European Company Survey 2019, working paper, Dublin.
Eurofound (2020d), Employee representation at establishment or company level: A mapping report ahead of the 4th European Company Survey, working paper, Dublin.
Eurofound (2021), Working conditions and sustainable work: An analysis using the job quality framework , Challenges and prospects in the EU series, Publications Office of the European Union, Luxembourg.
Eurofound and Cedefop (2020), European Company Survey 2019: Workplace practices unlocking employee potentia l , European Company Survey 2019 series, Publications Office of the European Union, Luxembourg
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Eurostat (2015), GDP per capita, consumption per capita and price level indices , Statistics Explained, 16 June.
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