The Malta Salary & Tax Calculator

💸 CONSISTENT MANUAL LABOUR PREJUDICE

✅ A prejudice on the ideal education for the younger generation has been ingrained in our society.
→ Although a university degree is perceived to be essential for a well-paying job, it is a common misconception.
→ Private education is ...preferred by many parents, though it may be expensive, and students often arrive unprepared for the labour market.

✅ The CGIA, Italy's small tradesmen enterprise association, discovered that there were more lawyers than plumbers in the country.
→ Additionally, the number of small tradesmen enterprises shrank by around 400.000 between 2012 and 2023.
→ The CGIA is worried that the number of tradesmen like plumbers, carpenters, and electricians will not suffice in a few years.
→ Malta does not seem concerned and continues to import tradesmen from developing countries, as the prejudice against manual labour prevails.

✅ Trade schools provide students with apprenticeship schemes from several different industries.
→ The earlier interested young people are enrolled in technical and practical training, the more successfully they will complete their education.
→ Therefore, trade schools offer secondary and post-secondary education, and trade careers can offer stability and high wages.

✅ Education authorities ought to consider a revitalisation of trade schools.
→ MCAST has been offering manual career paths to fallen behind or interested students in the last two decades, but more needs to be done.
→ The younger generation should be prepared for careers that can help them achieve satisfying and well-paid jobs.

Read the Article! 👇
https://timesofmalta.com/article/more-lawyers-plumbers.1097797

💸 UNEMPLOYMENT RISES BY 25.5% IN JULY

✅ In July 2024, registered unemployment increased by 25.5% year on year.
→ A total of 1.121 are now registered for work, an increase of 228 people compared to July 2023.
→ Despite the significant increase, the previous unemployment ...rate of 3.1% in June 2024 should be considered.
→ This percentage features unemployment growth across all age groups.

✅ The short-term unemployment category of 21 weeks or less increased by 33.8%, making it the largest expansion across all categories compared to July 2023.
→ The increase of the category of 21 to 52 weeks expanded with 47 people in comparison to July 2023.
→ Long-term unemployment rose by only seven people compared to last year.

✅ Around 69% of all job seekers are male, while 31% are female.
→ Jobseekers who have disabilities have a greater gender imbalance, with almost 75% being male.
→ The number of job seekers with disabilities increased from four to 230 people in July 2024.

✅ Malta's labour market is navigating post-pandemic economic changes leading to fluctuations in key sectors and leaving many workers seeking new opportunities.
→ The most sought-out positions are clerical support roles, as 23% of male and 39% of female jobseekers target these roles.
→ To ensure sustainable growth, reskilling, upskilling, and expanding opportunities will be critical.

Read the Article! 👇
https://businessnow.mt/maltas-registered-unemployment-jumps-by-25-5-year-on-year/

💸 EMPOWERING START-UPS WITH GOVERNMENT SUPPORT

✅ The government will continue to offer incentives through the Malta Enterprise to create quality careers by investing in innovative start-ups.
→ The Prime Minister has mentioned that he prefers quality over quantity to enhance the ...added value of the Maltese economy.
→ He also emphasised the importance of supporting young people and families in this initiative.

✅ Companies like Scope Solutions and Dedaub are examples of successful start-ups in Malta.
→ These companies are expanding internationally, highlighting the potential for start-up growth.
→ They have benefitted from government support schemes like Micro Invest, Strengthening Market Entry, and Investment Aid Tax Credits.

✅ Upcoming events like the Start-up Festival and Techxpo will showcase innovative projects and provide networking opportunities.
→ The event will feature start-ups and include practical workshops.
→ There will be opportunities for innovative ideas to become reality with potential investors.

Read the Article! 👇
https://www.independent.com.mt/articles/2024-08-29/local-news/Government-provides-incentives-for-creating-quality-careers-in-innovative-start-ups-6736263793

💸 LOW-INCOME FAMILIES MINIMUM BUDGET SET AT €19.153

✅ A study conducted by Caritas Malta stated that the minimum essential budget for a decent living for a low-income family of four is €19.153 per year.
→ The study aims to provide a 'comprehensive, realistic, and humane... perspective for what constitutes a decent standard of living for low-income households in Malta'.
→ The budget basket consists of items such as food, clothing, education, and more.
→ The items included in the budget basket were selected with sustainability principles in mind, with an emphasis on what people ought to consume rather than what they now consume.

✅ Three types of low-income households were researched to conclude their budget calculation.
→ A family of two adults and two children was found to require a minimum budget of €19.153.
→ A single parent with two children was found to need a minimum budget of €17.012.
→ An elderly couple aged 65 and older was found to require a minimum budget of €14.731.
→ The study assumes good health, use of national healthcare, and eligibility for social services.
→ An augmented budget that considers additional costs (dining out, car ownership, commercial rent) is significantly higher.

✅ Only five out of the eleven average cases met this budget calculation.
→ Two out of three families consisting of two adults and two children did not meet the budget, while one exceeded it.
→ Two single parents fell short of the budget by at least €1.000.

✅ Caritas Malta suggested several recommendations, including raising the poverty benchmark, promoting digital inclusion, and improving access to healthy food.
→ The ministry has mentioned that several measures have already been taken, but additional recommendations by Caritas Malta will be considered.

Read the Article! 👇
https://www.independent.com.mt/articles/2024-08-28/local-news/19-153-declared-as-minimum-essential-budget-for-low-income-families-of-four-Caritas-study-6736263775

💸 THE FUTURE OF MALTESE EMPLOYMENT

✅ The Malta Chamber emphasises the need for a shift towards prioritising productivity in the economy in its newly announced priority proposals.
→ It suggests capping the number of third-country nationals (TCNs) under the guise of value-added ...employment.
→ It further proposes that a work permit should be extendable for three years if educational and skill requirements are met after an initial successful year of employment.
→ Additionally, a tax exemption is recommended to encourage highly qualified Maltese individuals currently living and working abroad to return to the workforce.
→ These adaptations aim to address staffing shortages with a new workforce strategy by investing in skilled labour and sustainable practices to improve the quality of employment in Malta.

✅ Furthermore, there is a call for a transformation of workplace pensions.
→ There should be a rise in the adoption of supplementary pensions, and it is recommended to implement auto-enrollment with an opt-out option.
→ Contributing employers should receive more attractive tax incentives compared to what is currently provided.

✅ It is recommended that outsourcing and temping agencies be regularly monitored to ensure that the new proposals do not classify them as permanent employers.

Read the Article! 👇
https://timesofmalta.com/article/cap-tcns-incentive-maltese-return-home-chamber-budget-proposals.1097243

💸 MALTESE GRADUATES AT THE TOP

✅ Close to 96% of all Maltese graduates are able to find a job within three years of finishing their studies, ranking number one in Europe.
→ Since the year 2000, the Maltese rankings have always been high.
→ Though during the years 2021 and ...2022 the numbers showed a significant drop due to COVID-19, not only affecting Malta's, but also Europe's ratings.
→ In 2023, a bounce back took place with an all-time high rating of 95.8%, which is more than 12% higher than the European average.
→ This makes Malta the only Southern European or Mediterranean country to register above the EU average.

✅ More than 96% of graduates with tertiary education find a job within three years, and 90% of graduates with non-tertiary education do.
→ As Malta's employment rates are high, these numbers are not unsuspected.
→ Though these results do not give insights into what jobs these graduates land, it is unsure if they find a job that matches their skills.

✅ Even though the graduate employment numbers are high, a lot of individuals do not stay in school.
→ One in ten Maltese 18-to-24 year-olds leave school early, achieving fewer than two O-Levels.
→ These numbers decreased at least 11% since 2010, though they still are above the EU average.

Read the Article! 👇
https://timesofmalta.com/article/maltese-graduates-top-eu-employment-rate-ranking.1097012

💸 EMPLOYMENT TRENDS IN MARCH 2024

✅ Registered full-time employment grew by 6.2% in March 2024 compared to March of last year.
→ The activities that increased the most in full-time employment were the administrative and support services and the accommodation and food ...services.
→ The private sector climbed by 15.895 people to 233.375, while the public sector grew by 869 individuals to 51.857.
→ Self-employment increased by 784 compared to March 2023.
→ Individuals registered as employees rose by 15.980.
→ Men's full-time employment went up by 6.2%, while women's climbed with 6.3%.

✅ The climb in registered full-time employment and registered unemployment attributed to the labour supply increasing by 6.3%.

✅ Registered part-time employment grew by 7% in March 2024 compared to March of last year.
→ Professional, scientific, and technical activities and administrative and support services were the biggest contributors to the increase.
→ Individuals who held both a part-time and a full-time job increased by 8.9%.
→ Part-time employment functioning as the primary job rose by 4.8%.

Read the Article! 👇
https://www.independent.com.mt/articles/2024-08-22/local-news/Full-time-employment-up-6-2-in-March-NSO-says-6736263649

💸 NEW APPROACH TO THE GROWING SKILLS GAP

✅ The benefits and challenges of introducing skills cards for workers in Malta will be evaluated via a study from the National Skills Council.
→ The cards will highlight information on individual skills, qualifications, technical ...expertise, transversal skills, and other relevant competencies of workers in various sectors and industries in Malta.
→ The study will rank which industries will need to acquire and derive the most benefits from the skills cards, though the study will exclude the construction and hospitality industries.

✅ Skills cards have been introduced in the previous years in several forms.
→ In 2016, the Building and Construction Authority was introduced to the skills cards, but to this date, they have only been implemented as health and safety cards.
→ In 2023, the skill 'pass' was introduced to the hospitality industry.
→ In 2024, the Malta Tourism Authority will initiate skills cards, starting with non-EU nationals and expanding to local workers and EU nationals in 2025.

✅ Gaps in required skills started showing due to the rapid economic growth in Malta in recent years, as it led to an increasing demand for jobs.
→ Due to the COVID-19 pandemic, Malta's labour market went through a massive change.
→ In 2021, the Maltese economy recovered, and industries were confronted with a shortage of skilled labour, which is when non-EU workers filled the shortcomings.
→ Now, around one-third (36%) of the Maltese workforce consists of EU and non-EU workers.

✅ Industries notice that the lack of skills in the labour market has affected the overall quality of service offered to clients.
→ The National Skills Council reports that even with a large number of workers coming to Malta, the deficiency in skills is critical for the highly diversified business environment.
→ A large amount of business sectors demand a wide range of skills, from fisheries to tourism.
→ In 2022, 75% of employers are concerned about the attraction of the right skills, based on an HR Pulse Survey.
→ A mismatch in skills was noticed by 54.3% of the working population, according to a National Statistics Office study.

✅ Hiring needs to be more uncompromising in regard to skills and requirements for both EU, non-EU, and Maltese workers, according to the NSC.

Read the Article! 👇
https://www.maltatoday.com.mt/news/national/130459/study_will_rank_maltese_businesses_requiring_skills_cards_the_most

💸 OVERSATURATED LABOUR MARKETS

✅ By creating a level playing field with enforcing fiscal obligations, cab companies that are unable to adhere to Malta's tax and employment legislation will be filtered out.
→ The government has decided to limit the number of non-EU nationals... coming to Malta for the food delivery and transport industries.
→ Jobsplus determines if work permit applications for work permits for non-EU nationals are acceptable or not.
→ The agency recommended the government to refuse new applicants, as, after evaluation, the labour market has reached its saturation point.
→ The refusals include those looking for a change in employers and those still abroad but exclude those asking for a renewal.

✅ These regulations are necessary to support the 'stability and continuity of employment', according to the Home Affairs Ministry.
→ Meanwhile, the Single Permit system: a combination of residence and work authorisation, is also undergoing a rigorous assessment process by Jobsplus according to the ministry.
→ Minister Byron Camilleri has said that employers who are under investigation for exploitation of their employees will not be permitted to recruit new applicants.
→ The government ought to protect its foreign workers from abuse as it protects its Maltese workers.

✅ Regulations have mentioned that non-EU nationals should only be able to obtain a work permit if their labour skills are needed in the industry and cannot be acquired on the domestic market.
→ Surveillance of the labour market ought to be continuous to be able to register and address saturation points to simplify planning for market operators.
→ The labour market cannot be left alone in a population-dense country, though the reins should not be too tight either to prevent higher consumer prices

Read the Article! 👇
https://www.maltatoday.com.mt/comment/editorial/130501/cab_industry_for_a_fair_and_balanced_labour_market_curb_tax_evasion_as_well