How is net salary in Malta calculated in 2026?
In Malta, your net salary is your annual gross pay minus two deductions: Class 1 Social Security Contributions (SSC) and income tax. SSC is charged at 10% of your weekly basic wage, but it is capped: for employees born on or after 1 January 1962 the maximum is €55.93 per week (€47.41 for those born earlier). The 10% rate only applies up to a weekly wage of about €559.30 — above roughly €29,084 a year you simply pay the flat weekly cap. Your employer pays an identical 10% SSC on top of your salary, so the total cost to the employer is your gross plus the employer SSC. Income tax in Malta is progressive and, importantly, is charged on your full gross emoluments — SSC is not deducted from the tax base (Malta differs from many continental systems here). You pick one of three computations: Single, Married or Parent. Each is a four-band table at 0%, 15%, 25% and 35%, where tax = gross × the band rate − a fixed subtraction. The 2026 tax-free thresholds are €12,000 for Single, €15,000 for Married and €13,000 for Parent, and the top 35% rate begins at €60,001 for everyone. New for 2026, Married and Parent computations get even wider tax-free bands when you have qualifying children. Worked example: on a €30,000 gross salary, Single computation, born after 1962 — your weekly wage is €30,000 ÷ 52 = €576.92, which exceeds the cap, so SSC is the flat €55.93 × 52 = €2,908.36 per year. Income tax falls in the 25% band: €30,000 × 0.25 − €3,400 = €4,100.00. Net salary = €30,000 − €2,908.36 − €4,100.00 = €22,991.64 per year, or €1,915.97 per month. Your employer also pays €2,908.36 SSC, so the total cost to the employer is €32,908.36. The effective deduction rate is (€2,908.36 + €4,100.00) ÷ €30,000 = 23.36%.
Official source: CFR Malta (MTCA) · Data updated: 2026-06-02