Malta's national minimum wage rose in January 2025 as part of the government's annual Cost of Living Adjustment (COLA). The increase, announced in the Budget, reflects the government's commitment to protecting workers' purchasing power in the face of rising living costs.
The new minimum wage applies to all employees aged 18 and over, with lower rates applicable for those under 18 and those in their first year of employment. Employers are legally obligated to pay at least the minimum wage, and failure to comply can result in significant penalties under the Employment and Industrial Relations Act.
Beyond the base minimum wage, many sectors in Malta are governed by Wage Regulation Orders (WROs), which set higher minimum rates for specific industries such as hospitality, retail, and construction. Employers in these sectors must ensure they are applying the correct WRO rates, which are updated periodically by the Department of Industrial and Employment Relations.
For workers, the increase means a modest improvement in take-home pay, though trade unions have called for more substantial rises to keep pace with Malta's cost of living. For employers, particularly in hospitality and retail, the adjustment requires a review of payroll systems and employment contracts to ensure full compliance. JobsPlus provides free guidance for employers navigating these changes, and the Department of Industrial and Employment Relations publishes updated rate tables annually.