How Social Security Contributions Work in Malta
Social Security Contributions, commonly shortened to SSC, are separate from income tax. Employees generally pay Class 1 contributions through payroll, while employers pay a corresponding share.
People earning income from their own trade, profession or other qualifying activity may instead pay Class 2 contributions. The correct class and rate depend on employment status, earnings, age and other circumstances.
For 2026, Class 1 employee contributions are normally based on basic weekly pay. Overtime, bonuses and allowances earned in a particular week are not included in that basic weekly wage calculation.
Class 1 Contributions for Employees
The standard Class 1 rate is generally 10% of basic weekly pay for the employee and another 10% for the employer, subject to fixed minimums and maximums.
For an employee aged 18 or over earning no more than €229.44 weekly, Category B applies:
- Employee contribution: €22.94 per week
- Employer contribution: €22.94 per week
- Combined contribution: €45.88 per week
The employee may choose to pay 10% of the actual basic weekly wage instead in the relevant low-wage situation. That option produces pro-rata contributory benefits and should not be selected without understanding its effect on contribution records.
Employees Born From 1 January 1962 Onwards
For this birth-year group, employees with basic weekly pay from €229.45 to €559.30 generally contribute 10%.
The employer normally matches the employee contribution.
Once basic weekly pay reaches €559.31 or more, the standard weekly amount is capped:
- Employee: €55.93
- Employer: €55.93
- Combined: €111.86
The employer also pays the applicable Maternity Leave Trust Fund contribution. This is separate from the employee’s SSC deduction.
Employees Born Up to 31 December 1961
Different upper thresholds apply to employees in this birth-year group.
For basic weekly wages from €229.45 to €490.38, the employee and employer normally each pay 10%.
At €490.39 or more, the weekly contribution is capped at:
- Employee: €49.04
- Employer: €49.04
- Combined: €98.08
This is why a calculator or payroll system must ask for the employee’s birth-year category. Applying the younger group’s cap to every employee would produce the wrong result.
Calculated Example: €30,000 Annual Salary
Consider an employee who:
- Earns €30,000 basic salary annually
- Was born on or after 1 January 1962
- Is paid across 52 equal contribution weeks
First convert the annual salary to a weekly equivalent:
€30,000 ÷ 52 = €576.92 per week
This exceeds the €559.30 upper percentage band. The weekly employee contribution is therefore capped at €55.93.
Annual employee SSC is:
€55.93 × 52 = €2,908.36
The employer normally pays the same Class 1 amount:
€55.93 × 52 = €2,908.36
The combined annual Class 1 contribution is:
€2,908.36 + €2,908.36 = €5,816.72
Only the employee’s €2,908.36 is deducted from the employee’s gross pay. The matching employer amount is an additional employer cost, not a second deduction from the employee.
The Malta Salary Tax Calculator combines estimated employee SSC with income tax to show indicative net salary. The Malta Wage Calculator also presents weekly and monthly pay figures.
Class 2 Contributions
Class 2 generally applies to people who are not employees and derive more than €910 annually from an economic activity.
This includes self-occupied individuals earning from a trade, business, profession or vocation. Official terminology also distinguishes certain self-employed people receiving income from sources such as rents or investments.
Unlike Class 1, Class 2 rates are based on net profit or income from the year preceding the contribution year. Minimum and maximum weekly amounts apply.
For a person born from 1 January 1962 onwards, the maximum standard Class 2 contribution reaches €83.89 weekly once the relevant prior-year net income threshold is reached.
Class 2 Example Using €27,000 Net Profit
Suppose a self-occupied person recorded €27,000 in relevant net profit during the preceding year.
At 15%:
€27,000 × 15% = €4,050 annual Class 2 SSC
The weekly equivalent is:
€4,050 ÷ 52 = €77.88 per week
This remains below the €83.89 weekly maximum for someone born from 1 January 1962 onwards.
The Self Employed Malta Tax Calculator can show estimated Class 2 SSC alongside income tax and net income.
SSC Is Not the Same as Income Tax
Income tax uses chargeable income and the applicable single, married or parent bands. SSC uses separate contribution categories and rules.
A worker can therefore have both deductions on the same payslip. Adding only income tax will overstate take-home pay.
For an explanation of current tax bands, read Malta Tax Rates 2026. For salary context, the Average Salary in Malta 2026 guide explains the difference between gross basic and net pay.
More Malta-focused payroll tools are available through Malta Calculators.
Part-Time Work and Pro-Rata Contributions
An eligible part-time employee earning below the weekly national minimum may choose to pay 10% of actual basic weekly earnings instead of the default Category B amount.
The employer generally remains responsible for the full applicable employer share. A reduced employee contribution can also carry less proportional weight for contributory benefit or pension records.
Workers with multiple jobs or fewer than eight hours with the same employer can face additional rules. Their situation should be checked rather than applying the standard full-time example automatically.
Before Checking a Payslip
Confirm these details first:
- Employment or self-occupied status
- Basic weekly wage
- Birth date category
- Number of contribution weeks
- Previous-year net profit for Class 2
- Any authorised pro-rata election
The Malta Tax and Customs Administration publishes the official categories, thresholds and weekly rates. Verify the latest table through MTCA when reviewing payroll or contribution records.
Frequently Asked Questions
Q:1 What is the standard employee SSC rate in Malta for 2026?
A: It is generally 10% of basic weekly pay, subject to the applicable minimum, category and maximum.
Q:2 Does the employer also contribute?
A: Yes. The employer normally pays a corresponding Class 1 amount in addition to the employee deduction.
Q:3 Are bonuses and overtime included in basic weekly wage for SSC?
A: No. The official basic weekly wage excludes allowances, bonuses and overtime earned in that week.
Q:4 What is the maximum employee rate for someone born from 1962 onwards?
A: The 2026 Class 1 maximum is €55.93 per week.
Q:5 How are Class 2 contributions calculated?
A: They are generally based on the preceding year’s net profit or income, subject to minimum and maximum rates.
Q:6 Is SSC included in income tax?
A: No. Social Security Contributions and income tax are separate deductions.