Professional Employer Organization (PEO) in Malta

What is a PEO? 

A professional employer organization is an outsourced agency that provides human resources functions — typically for small businesses, startups, and SMEs. Services include payroll, hiring, onboarding, compliance, and benefits. 

A PEO takes the time-consuming burden of administrative tasks for your company. This allows your company to focus more on growing revenue and less on mundane, but necessary, tasks. A  PEO’s experts will look after your teams in line with employment laws in Malta, so you don’t have to worry about it. 

With the help of a PEO, you can build a global team with workers from all over the world, including Malta. Interested in learning more about PEOs in Malta? Speak to one of the Skuad team today.

What are the benefits of PEO services in Malta? 

Working with a PEO brings many benefits, ranging from access to top talent to 100% compliance with Maltese laws. A PEO is a valuable asset for any ambitious company looking to grow. Find out more key benefits below. 

Recruit top talent from Malta 

You want to hire the best talent, but limiting your search to local places can hinder your talent acquisition. Remote hiring has changed the way companies do business, so why not source remote workers from all over the world? 

Malta is a small but talented country with about 500,000 nationals. By expanding your horizons and talent pool, you’ll gain access to these talented workers who are eager to work for a growing company like yours. 

Position your business as a global competitor 

Do you want to have global workers from all over vying to work for your company? Working with a PEO can help position your business as the place to work for. 

A PEO in Malta has the expertise needed to offer competitive benefits and compensation packages. They also understand cultural differences and employment laws so you ensure you attracted the most qualified candidates in Malta. 

Eliminate unnecessary costs 

Hiring workers in Malta without using a PEO would be a costly process. There are many steps involved, discussed later on in this article, and many, many costs. 

Some of these expenses can come as a surprise during the incorporation process. Have you considered that your CEO might need to travel to Malta to establish the company? Or that you might need a rented office space for your legal entity to operate from, even if no one is working in it? 

Then you’ll want to account for how much it costs to run an internal human resources department. You not only have to worry about salaries and benefits but there would be ongoing training needs to maintain compliance with Maltese laws. 

You would also have to hire a legal team to ensure your business was set up and operating within legal guidelines. 

Of course, you can avoid all of these costs by working with a PEO in Malta, like Skuad. 

Gain insight into new markets 

Do you have aspirations of expanding globally in the future? Do you want to get a head start? 

Working with a PEO will allow you to gain valuable insights into Maltese and surrounding markets. You’ll gain a thorough understanding of how global operations work and will ready your business for future growth. 

Avoid the need to set up a new entity in Malta 

If you do not work with a PEO, the only other option you have for hiring in Malta is to establish a new entity. This requires a lot of fees, registrations, and documents. You’ll also be subject to the Malta tax rate for corporations and all employment laws. 

Working with a PEO eliminates the need to do this. The PEO acts as the employer of record, meaning you don’t have to establish an entity because they already have. You can maintain 100% legal compliance without the hassle or expenses needed to establish a new entity. 

Want to learn more about how Skuad can help you avoid this large, time-consuming endeavor? Request a demo today.

Increase cultural awareness 

You must understand cultural differences when working with international employees. A PEO has the knowledge needed to guide your interactions and help you understand cultural differences. This will make your interactions more pleasant and strengthen your skills as a leader. 

Maintain compliance with employment laws in Malta 

Did you know that the workweek is 40 hours in Malta? Or that labor laws are governed by several laws and mandates? It’s important to understand the complexities of employment law in Malta so you meet compliance requirements. 

There are two types of employment contracts: indefinite and fixed-term. Both types must outline the scope of work and statutory guidelines required by law. Each worker must receive a contract within 8 days of employment. 

Payroll 

Employees are paid monthly in Malta. There are set minimum wage requirements based on the worker’s age. 

• 181.08+ Euros per week for 18 years+
• 174.30 Euros per week for 17 years
• 171.46 Euros per week for under 17 years

Companies have four payroll options: outsourced to a local company, remote, internal, or outsourced to a global company. Contact Skuad for more information about how to get started with easy, outsourced payroll from an expert PEO.

Leave 

• Malta recognizes 13 public holidays. 
• Employees are entitled to 27 paid days off each year. 
• Sick leave is available for those with medical certificates saying they can’t work. The amount is set by the Social Security Act and will vary for part-time or employees with less than a year of service. 
• Maternity leave is for 18 weeks. Workers can take leave 4 weeks before birth or take it all at once after birth. The worker must inform the employer of when maternity leave will take place 4-weeks ahead of time. 
• Paternity leave is only one day for the birth of the child. 
• Adoption leave is for 14 weeks. 
• Bereavement leave is also available. 

Malta income tax and other tax rates

Malta income tax is a progressive system ranging from 0 to 35%, dependent on marital status and annual salary. 

Employer contributions include a Malta corporate tax rate of 35% and social security contributions based on each employee’s salary. 

What does it cost to build a team in Malta?

The cost of doing business in Malta is dependent on what option you choose. You can work with a PEO or you can complete the process of setting up a business in Malta. Establishing a new entity is a lengthy and costly process.  

Setting up a business in Malta

To complete the Malta company registration process, you must meet the requirements of the Maltese Companies Act. They are as follows: 

• Define the type of company you have
• Complete registration 
• Deposit 20% of the minimum capital amount into a Maltese bank (1,200 Euros)
• Register with the Malta Business Registry 
• Obtain licenses (the basic business license is 70 Euros)
• Get a tax identification number
• Register with the VAT department
• Obtain a PE number
• Register with JobsPlus 
• Data protection registration (for some businesses)

The documents you register with must include the following information: 

• Name and registered address of the office
• Details of the nature of the company
• Details of the company’s activities 
• Shareholders’ details
• Amount of capital details
• Shareholders’ rights and the number of shares issued to all shareholders
• Company directors and secretary details
• Availability period 
• Company’s legal representative details

As you can see, establishing an entity in Malta will take months or possibly years to complete. You can bypass the stress, costs, and time commitment by working with a PEO. 

PEO services in Malta 

Working with a PEO in Malta transfers the burden of your human resources activities to an experienced agency. It also transfers the legal risks and liabilities associated with global hiring. With Skuad, you can get started for free and cancel your account at any time. 

PEO services with Skuad start at $19 a month per worker. We also over employer of record in Malta which starts at $199 per month per worker. If you have an enterprise, please contact a Skuad representative for a custom quote. 

Partnering with a PEO will be a fraction of the cost and save tons of time versus setting up a local legal entity. You can also start your global hiring as soon as possible with a PEO. 

Book a free demo today

Do you want to see our easy-to-use platform in action? Schedule a free demo today and get started with global hiring in Malta. Talk to you soon!

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