Payroll in Malta is more than just processing salaries. It’s a legal obligation that demands precision, timeliness, and compliance. With recent updates from Jobsplus and strict enforcement of Cap. 594, employers must ensure their payroll processes are bulletproof. In this article, we outline the key payroll responsibilities for employers in Malta and how ARQ Group can help you stay 100% compliant.
The Evolving Payroll Landscape in Malta
Employers in Malta are expected to comply with a growing list of payroll-related obligations, including:
- Social Security Contributions (Class 1 SSC) – Based on income brackets and shared between employer and employee.
- Final Settlement System (FSS) – Monthly tax deductions and reporting to th eMalta Tax and Customs Administration.
- Government Bonuses & COLA – Statutory bonuses in March, June, September and December, plus annual cost-of-living adjustments.
- Leave Entitlements – Accurate tracking of vacation, sick leave, and public holidays.
- GDPR Compliance – Secure handling of employee data and payroll records.
- Recent Regulatory Update: Jobsplus 4-Day Rule:
As of 2025, Jobsplus requires that Engagement Forms be submitted within four (4) days of an employee’s start date. Similarly, Termination Forms must be submitted within four (4) days of the end of employment, as mandated by Cap. 594, Article 40. Failure to comply may result in administrative penalties and reputational damage.
Why Compliance-Driven Payroll Matters
Non-compliance with payroll regulations can lead to fines, audits, and employee dissatisfaction. Here’s how ARQ Group helps employers avoid these risks:
- 100% Compliance Guarantee – We ensure all payroll processes align with Maltese law, including the latest Jobsplus policies.
- Timely Submissions – Engagement and Termination Forms are submitted within the required 4-day window.
- Accurate Deductions – From SSC to FSS, we calculate and report all contributions correctly.
- Data Security – GDPR-compliant systems protect sensitive employee information.
- Audit-Ready Records – We maintain detailed, secure records for internal and external audits.
- Employee Confidence – Timely and accurate payslips improve employee satisfaction and reduce queries.
How ARQ Group Can Help
At ARQ Group, we understand the regulatory complexities surrounding investment funds. Our team of legal, compliance, and governance professionals is committed to helping you navigate your application with clarity and confidence. Whether you’re seeking strategic guidance or need support with MFSA engagement and documentation, we are here to ensure your fund remains compliant and competitive. With deep expertise in Maltese financial services and a commitment to client success, ARQ Group is your trusted partner in fund formation and growth. For more information, please contact Corene Ellul – Senior Manager – ARQ Services Ltd.
Corene Ellul
Senior Manager – Accounting
Corene Ellul is a Certified Public Accountant and accounting manager at ARQ, with expertise in tax advisory, compliance, and accounting. She holds degrees in Commerce, Accountancy, and a Master’s in Taxation, with a dissertation on digital economy taxation. Corene has experience in the Blockchain sector and delivers international tax training recognised by the Chartered Institute of Taxation.
