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Malta has confirmed revised social security contribution thresholds and rates that will apply from 1 January 2026, bringing moderate increases across contribution classes for both employees and employers.
These changes form part of routine annual adjustments to ensure alignment of contribution thresholds with economic shifts in wages and living costs.
Key Changes in 2026 Contribution Rates
Under the updated framework, contributions will continue to be structured by category and wage band for Class 1 employed persons. The rates reflect modest increases compared with previous years but maintain the core structure of employee and employer parity:
- Class 1 contributions remain primarily calculated on a 10% rate of the basic weekly wage, payable equally by the employee and the employer within specified wage bands.
- For younger workers and lower earnings brackets, fixed euro amounts apply — for instance, weekly contributions of €6.62 by both employer and employee for wages up to €229.44.
- For higher earnings, both parties contribute proportionally, with employer and employee shares rising to €55.93 weekly for wages above €559.31.
- Maternity Leave Fund levies also continue to be applied on top of social security contributions at specified rates.
Compared with the 2025 schedules, these revised thresholds represent a moderate upward adjustment designed to reflect nominal wage trends and to preserve the real value of social security financing.
Class 2 Contributions for Self-Employed and Self-Occupied
Self-employed and self-occupied individuals will also encounter updated Class 2 contribution bands, which are determined by net annual income:
- Weekly rates vary by income category, starting from roughly €31.97 for lower income brackets and rising to €83.89 for higher income brackets.
- Part-time self-occupied persons (such as students or pensioners) may pay a reduced rate where earnings do not exceed specified lower thresholds.
- Rates remain structured to balance pension entitlements and benefits eligibility with affordability for smaller operators.
What This Means for Workers and Employers
- Employees will see contributions adjusted slightly upward, particularly at higher earnings levels.
- Employers will also bear higher contribution costs, especially for roles with weekly wages above specified thresholds.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
