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Social security rates

 

There are two classes of contributions: Class 1 contributions and Class 2 contributions. 

Class 1 contributions – Employed Persons

 
In accordance with the provisions of the Act, whenever a person is employed in Malta under a contract of service, he is said to be in insurable employment – accordingly, a Class 1 contribution is due. For each person who is considered to be in insurable employment, three different contributions are payable: one by the employed person, one by his employer and one by the State. This class of individuals can be subdivided into the following:
 
  • Persons under 18 years of age
  • Persons aged 18 and over
  • All persons whose basic weekly wage is between the specified amounts for the year
  • All persons whose basic weekly wage is equal to or exceeds the amount specified for the year
  • Students* under 18 years of age. 
  • Students* 18 years old and over.

*Students who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration

 
Social security rates are calculated according to income of the individual before taxation and according to the year.
 
Information on rates can be found in the following link
 
Class 2 contributions – Self-Employed/Occupied Persons or without salary receipt
 
The Social Security Act defines two categories of persons that are required to pay Class 2 Contributions as follows:
 
  • Self Occupied Persons - persons who earn income from Trade, Business, Profession, Vocation or any other economic activity that exceeds a number per annum.
  • Self Employed Persons - persons who receive income from rents, investments, capital gains or any other income.

Rates for Class Two Social Security Contributions are based on the annual net profit or income for the year preceding the contribution payment year.

Information on rates can be found in the following link


Last updated in June 2014.