The Malta Salary & Tax Calculator

💸 MINISTER PUSHES FOR FASTER HSBC TAKEOVER

✅ Finance Minister Curuana said on Tuesday that the takeover of HSBC cannot go on indefinitely because of the effects it will have on the company's economy, employees, and shareholders.
→ Caruana is aware that it is a complicated ...procedure that might take months, but dragging it out for too long is bad for consumers, businesses, and the economy.

✅ Days after APS declared that it had backed out of the contentious arrangement, the finance minister answered questions from the Times of Malta.
→ He stated “Eight or nine months have passed since the announcement. I understand the process needs to take its course, but every beginning must have an end".

✅ After the international banking giant revealed its plan to quit the country in September, the search for a buyer for HSBC began.
→ APS, a Church-owned bank, emerged as a major contender to take over HSBC's operations, but there was some controversy.
→ Financial analysts and other critics questioned whether the European Central Bank would approve a transaction that would risk reducing Malta's already small banking sector.
→ Others addressed worries about the church's involvement in such business.

✅ Announcing abruptly last Thursday that it was "regretfully withdrawing" from the bidding process, APS Bank cited secret material acquired outside of the due diligence procedure as a major factor in its decision.
→ On Sunday, the Times of Malta claimed that the purchase had prompted severe worries among high Church authorities, including the Archbishop, about purported intentions for mass layoffs. APS has denounced these reports as "lies" and "evil machinations".
→ The bank reaffirmed its commitment to avoiding cuts, especially in discussions with Church leadership, and highlighted that no job layoffs had been discussed at any point throughout the negotiations.

✅ Caruana acknowledged on Tuesday that there were other bidders for HSBC Malta, but he claimed it was not his position to reveal who they were.
→ "I'll only stress - as I've already done - that we need to have more competition, not less, and that whoever acquires HSBC must have a good reputation," he stated.

Read the Article! 👇
https://timesofmalta.com/article/hsbc-takeover-cannot-take-forever-finance-minister-warns.1108556

💸 NEW STARTUP REGULATIONS TO BE UNVEILED SOON

✅ The Prime Minister's Office said that the government will implement new startup framework legislation in an effort to stimulate new business in Malta.
→ The OPM stated, "These regulations will lead to the setting up of ...the national startup will be able to access purposely developed support,"
→ "These new regulations are designed to provide necessary clarity and support to the startup community. This is Malta saying: We are here. We are open. And we are ready to build with you," Robert Abela stated.

✅ The scheme was introduced by Prime Minister Robert Abela at the start of the private EU-Startups Summit, which brought together over 2,000 participants, including entrepreneurs and investors.
→ In his conference speech, Abela noted that Malta's economy has evolved from a traditional model to a "dynamic hub for innovation."
→ Abela adds “Innovation must be open to everyone. It should not be confined to large capitals or privileged backgrounds. Talent is everywhere, and Malta is determined to give it a home,”.

✅ Since 2020, Malta Enterprise has backed over 190 startups, creating "hundreds of high-quality jobs" in a variety of industries, according to Abela.
→ Abela also stated that startups play a vital role in Malta's long-term goal, "Through our national long-term strategy - Malta Vision 2050 - we are building a sustainable, innovation-led economy that is resilient to shocks and ready for opportunities. Startups are at heart of that future.".

✅ Among the attendees were prominent unicorn-company founders and Ekaterina Zaharieva, the recently appointed European Commissioner for Startups, Research & Innovation.

Read the Article! 👇
https://timesofmalta.com/article/new-regulations-support-startups-soon-announced.1108660

💸 MALTA'S DEBT AND DEFICIT DECLINE

✅ Clyde Caruana stated on Tuesday that the nation's debt and deficit have improved compared to earlier projections.
→ Malta's standard of living is about 10% greater than that of its European neighbours, and the country’s ...debt remains a third lower than the EU average.
→ In 2024, Malta’s debt-to-GDP ratio is 47.4%, well below the 55.3% forecasted in Caruana’s budget speech.
→ Similarly, the deficit was -3.7% of GDP, 0.8% better than the projected -4.5%.

✅ He was addressing a press conference after deficit and debt statistics were published by the National Statistics Office (NSO) and Eurostat.
→ "The debt and deficit are under control and we exceeded the efforts required of us by the EU," he stated.
→ “Despite the pandemic and the fact that we are still the only EU country subsidising energy, debt is going down. This demonstrates our ability to safeguard the economy without jeopardising the nation's finances, all while adhering to EU regulations."

✅ He said Malta’s declining debt strengthens its ability to withstand economic shocks.
→ "We are not only keeping debt below the 60% threshold mandated by the EU, but we are also consistently reducing it. This resilience will allow us to absorb potential future challenges, such as pandemics or energy price spikes, as we did in the past by supporting businesses and families – a strategy that has proven successful,” he stated.

✅ NSO data shows Malta’s 2024 deficit was €825.3 million (3.7% of GDP), while the national debt rose by €817.7 million to €10.6 billion (47.4% of GDP).

✅ Caruana announced an improved outlook for 2025.
→ "In last October’s budget I projected a deficit of 3.5% for this year. Today, I am pleased to announce we are revising that target to 3.3%. This should dispel any notions of weakening government finances, and in saying this, I’m demonstrating our confidence in achieving that target."
→ He said this allows the government to uphold election promises, maintain tax breaks, and continue energy subsidies.
→ He added Malta is on track to go below the 3% deficit threshold by next year—something he said is unprecedented in the EU.
→ He credited stronger-than-EU-average economic growth and rising government revenue.

✅ Prime Minister Caruana highlighted Malta’s financial standing compared to other EU members.
→ He said the country’s debt is over 30% lower than the EU average, and that since 2019, purchasing power has been about 10% higher than the EU norm.
→ He concluded saying "The country's finances are more than on track,".
→ "We anticipate a continued decrease in the deficit without imposing any additional burdens or taxes on the people. This will allow us to exit the excessive deficit procedure without placing any undue pressure on people and businesses.”

Read the Article! 👇
https://timesofmalta.com/article/debt-deficit-lower-projected-clyde-caruana-hails-strong-finances.1108553

💸 US-MALTA TRADE DROPS IN 2025, ENDING RECORD GROWTH

✅ According to recently released national statistics, Malta's trade with the US fell sharply in the first two months of 2025 when compared to the same time in 2024.
→ Concerns over US President Donald Trump's ...tariffs, which took effect on Wednesday 9th April, are unlikely to be the cause.
→ These include a 20% charge on goods from the EU, which includes Malta.

✅ According to NSO numbers published on Wednesday, Malta exported only €23 million in goods to the US in January and February 2025.
→ Malta exported almost €151 million to the US over the same period previous year.
→ Imports also fell, going from €40.4 million last year to €16.5 million this year.

✅ However, last year's extraordinarily high export data appear to be a blip, as earlier years indicate rates comparable to 2025.
→ Statistics indicate a single export of shipping or aircraft to the United States in early 2024.
→ Over the course of the previous year, Malta imported €342 million and exported €272.5 million worth of goods to and from the US, both of which were far greater than in 2023.
→ In general, Malta's trade loss for the first two months of this year was €486 million, which is marginally less than the €502 million recorded at this time last year.

✅ It seems that Malta's expanding semiconductor and pharmaceutical industries account for a large portion of its exports to the US.
→ In its Vision 2050 paper, which was released on Tuesday, the government prioritised two industries.

✅ It should come as expected that Italy continues to be Malta's top trading partner; in January and February, Malta imported more goods from its Mediterranean neighbour than any other nation, totalling almost €237 million.
→ Additionally, Malta has maintained a robust export connection with Germany, shipping €108 million worth of goods to Germany in 2025 alone.

✅ A major amount of Malta's imports are energy-related, with about a quarter of all imports classified as "mineral fuels, lubricants, and related materials," which includes petrol and petroleum.
→ Malta relies greatly on imports for machinery and transportation (€298 million), chemicals (€193 million), and food (€116 million).

Read the Article! 👇
https://timesofmalta.com/article/usmalta-trade-tumbles-2025-reversing-last-year-record-highs.1107899

💸 Malta's Alternative Success Metrics to GDP

✅ Malta's government is shifting its focus from traditional GDP measurements to assess success through wellbeing, disposable income, and education.
→ This initiative was announced during the unveiling of Vision 2050, ...Malta's strategic plan for the next 25 years.
→ The government is emphasizing three global criteria with specific targets tailored to Malta, aiming to create a "safe and resilient nation" that promotes a healthy quality of life for all citizens.

1️⃣ Human Development Index
→ The first metric is the UN's Human Development Index (HDI), which evaluates countries based on income, education, and life expectancy.
→ Currently, Malta ranks 25th on the HDI, having improved from 39th in 2014.
→ The ambitious goal is to break into the top 20 by 2035 and the top 10 by 2050, reflecting a commitment to enhancing overall human development.

2️⃣ Median Income
→ The government aims to enhance income levels by using the EU's median disposable income as a benchmark.
→ The current median wage in Malta stands at €18,940, which is slightly below the EU average.
→ By 2035, the government projects this will increase to 115% of the EU median, and further to 135% by 2050, bringing Maltese wages in line with those in France and the Nordic countries.

✅ Overall, the economy is expected to expand, although at a more gradual pace.
→ GDP will continue to serve as a crucial performance indicator.
→ Economic growth is anticipated to slow from an average of 10% annually to around 5% over the next decade.
→ The economy, which generated over €20.5 billion in the last decade, is projected to reach €38 billion by 2035, largely driven by sectors such as high-end manufacturing, financial services, and aviation.

✅ Tourism and construction are also set to grow, though at a slower rate.
→ By 2035, the number of tourists is expected to reach 4.5 million, nearly a million more than today, with a focus on doubling the amount spent by tourists each night.
→ The construction industry is projected to grow at a rate of 6 to 7%, down from the 10% growth seen since 2013, indicating a more sustainable approach to development.

Read the Article! 👇
https://timesofmalta.com/article/what-malta-plans-measure-instead-gdp-track-success.1107841

💸 MISCARRIAGE LEAVE PROPOSAL IN GOVERNMENT TALKS

✅ The prime minister stated on Sunday that the government is debating how to provide paid leave to workers who experience a miscarriage.
→ Robert Abela stated that the government was debating how to proceed with offering paid ...leave to couples who were going through a challenging time following a miscarriage during a panel discussion on "Challenging stereotypes, creating opportunities", organised by Nisa Laburtisti.
→ If an employee is unable to report to work due to a miscarriage, they may apply for sick leave, as Maltese law does not currently offer any particular leave in this regard.

✅ Andy Ellul, the Parliamentary Secretary for Social Dialogue, coordinated the talks, according to Abela.
→ Abela stated “We want to introduce this special leave to improve the quality of life for couples, I have met medical experts at Mater Dei Hospital to discuss how we can address these pockets in our society and help such couples.”

✅ A stillbirth occurs after the first 23 weeks of pregnancy, whereas a miscarriage occurs during the first 23 weeks.
→ The UK NHS states that "a miscarriage can be an emotionally and physically draining experience," which can cause the impacted women to feel shocked, angry, and guilty.
→ In 2023, telecom company GO began providing its employees who suffer a miscarriage, stillbirth, or unsuccessful IVF with up to four weeks of paid leave for pregnancy loss.
→ In contrast to other countries like the UK, where women were facing "period poverty," Abela said on Sunday that the government has lowered the VAT on all menstrual products and medical cancer accessories for women.

✅ He also mentioned that this weekend celebrated the 12th anniversary of a Labour government, and that his party has always supported equality and social rights.
→ According to him, the government's primary accomplishment over the past 12 years has been a 30% increase in the employment rate of women.
→ Abela said “You may ask if we achieved everything, and I say that the road is long and we have more incentives to introduce and challenges to face,”.

Read the Article! 👇
https://timesofmalta.com/article/government-discussing-introduction-miscarriage-leave-pm.1106292

💸 MALTESE WAGES BELOW MOST EU NATIONS

✅ New data shows Maltese workers earn less per hour than all but four EU nations.
→ Eurostat's data indicates that workers in Malta make just €14.20 per hour before taxes, less than half the EU average of €31.80.
→ The ...only countries with lower wages are Romania, Hungary, and Latvia, with Bulgaria last at €9.30 per hour.

✅ Portugal is the only Western or Central European country with similar wages, at €17 per hour.
→ In neighboring Italy, workers earn €29.80 per hour, double Malta's rate.
→ Luxembourg tops the ranking at €53.90 per hour, followed by Denmark, Iceland, and Norway.

✅ Since 2016, wages have risen across Europe, except in Malta.
→ Malta's salaries have remained unchanged since reaching €14.20 last year, after falling to €13.20 in 2020.
→ Earnings rose from €11.80 to €14.20 between 2012 and 2016 but have since stagnated.

✅ In 2016, 11 countries paid less than Malta, but seven have since surpassed it.
→ Overall, EU earnings rose by over 5% in 2023.
→ Malta's low wages are a persistent frustration, and rising living costs have worsened financial stability.
→ KPMG's evaluation indicates that purchasing power has declined as wage increases have been outpaced by inflation.

✅ Three opposition MPs claimed Eurostat data shows the failure of the government's low-cost labor strategy.
→ MPs Jerome Caruana Cilia, Ivan J. Bartolo, and Ivan Castillo stated that this model harms essential sectors like education, health, and infrastructure.

✅ The Labour Party argued that wages have increased and responsibilities decreased under the current administration.
→ Recent data indicated that Malta's workers' pay ranks 12th in the EU.
→ The government has also reduced costs for public transport and childcare.
→ The Labour Force Survey for Q4 2023 revealed a 25% wage increase since 2016, with Eurostat showing continued income growth.

Read the Article! 👇
https://timesofmalta.com/article/maltese-wages-lower-eu-countries-eurostat.1090272

💸 FEBRUARY TAX DROPPED DUE TO EARLY PAYMENT

✅ Finance Minister Clyde Caruana told parliament on Wednesday that the government's financial performance and goals were unaffected by the significant decline in income tax collection in February, which was mainly caused by a generous ...payment that had been paid three months previously.
→ The minister noted that the government revenue for the year is projected to exceed initial predictions, saying that the deficit would remain far below the objective and the national debt will drop in comparison to the previous year.

✅ He stated that the deficit would be well below the 3% limit set by the European Union by the following year.
→ The national debt would also shrink to around 50% of GDP, with the government maintaining its objective of 40%.

✅ Caruana noted that tax collection fell by €180 million in February, however, it was a monetary management issue.
→ The fall in February was caused by a significant early payment, which increased income tax receipts in December by €369 million to €617 million in that month alone.
→ This early payment bolstered government finances and allowed it to postpone bond issuance by two months.

✅ Caruana stated that the economy is thriving and that the government will maintain its policies, such as power subsidies and support, despite pressure from the EU.
→ Malta's response, he argued, was to fully implement the Economic Governance Framework.

Read the Article! 👇
https://timesofmalta.com/article/tax-revenue-drop-february-caused-major-early-payment-december.1107553

💸 EMPLOYMENT INCREASED IN THE LAST QUARTER OF 2024

✅ According to data released on Thursday by the National Statistics Office (NSO), employment grew 4.2% in the last quarter of 2024 when compared to the same period the previous year.
→ Between October and December, 325.631 ...people were employed, which is equivalent to two-thirds of the population that are 15 or older.
→ In the meantime, over 9.500 were unemployed people and around 160.000 inactive people.

✅ According to the NSO,81 out of every 100 people, aged between 15 and 65, were employed.
→ The employment rates for men was just under 87%, while employed women stood at just below 74%.
→ It pointed out that the biggest proportion of employed people were between the ages of 25 and 34.

✅ During the period under review, there were around 290.000 full-time employees, and over 36.000 people primarily worked part-time.
→ Less than 14 percent of workers were self-employed.
→ Part-timers typically worked 23.1 hours per week, and full-timers typically worked 41.1 hours.
→ Additionally, the average hours worked per week have increased to 34.7, up by 1.9 hours from the same quarter last year.

✅ During the review period, the average monthly basic pay was slightly under €2,000, with the financial and insurance industries recording the highest salaries.
→ The NSO reported that average salaries varied from €1,239 for elementary jobs to €3,170 for managerial positions.

Read the Article! 👇
https://timesofmalta.com/article/employment-rose-last-quarter-last-year.1106513