Business
Malta — Business: Payroll
Maltese employers deduct tax and social security from pay under the Final Settlement System and remit monthly with the FS5; Class 1 category C contributions are 10% each for employee and employer in 2026.
VerifiedGovernment / official sourceMalta Tax and Customs Administration — Final Settlement System (FSS) and Class 1 rates 2026Last reviewed: 2026-10-23
Key facts
- Employers must deduct FSS tax and social security contributions from employee pay and remit them to the Commissioner monthly with the FS5 online.
- Payments are due by the end of the month after the month in which the deductions arose, per the MTCA FAQ; an older manual gave a 15-day window, so confirm with MTCA.
- For 2026 Class 1 category C (weekly wages EUR 229.45 to EUR 559.30, born 1962 onwards) both employee and employer pay 10%; above that band the flat weekly amount is EUR 55.93 each.
- A maternity fund contribution of 0.30% applies to category C.
- End-of-year FS3 and FS7 forms are due by 15 February; employers with 10 or more FS3 forms must file electronically.
Steps
- Registering with DIER — Register with the Department of Industrial and Employment Relations (DIER) and obtain a registration number. This can be done online or in person at the DIER office.
- Registering with National Insurance and Benefits Department — Register employees with the National Insurance and Benefits Department. This is a requirement for the contributory social security system.
- Setting up PAYE — Set up a Pay-as-you-earn (PAYE) system for deducting and paying taxes and social security contributions. This requires registering with the Inland Revenue Department and obtaining an Employer's Registration Number.