PEO Services in Malta

A co-employment model for companies that want to share the employer relationship in Malta rather than hand it over entirely. Worth knowing up front: true PEO co-employment is far less established in Malta than in the US, so we will tell you honestly whether PEO or an EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest positioning

What a PEO does in Malta

A Professional Employer Organisation works on a co-employment model. You and the PEO partner share the legal employer responsibilities for your Maltese staff: you keep direction and day-to-day control, while the partner administers payroll, income tax, Class One social security, the statutory bonus payments, and HR compliance under a shared arrangement.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle payroll, income tax, Class One social security, the statutory bonus payments, and HR administration.

02

More direct control

PEO suits companies that want to retain more direct control of the employment relationship than a full EOR arrangement allows. In Malta, true co-employment is uncommon, so EOR is usually the better fit.

03

Honest recommendation

For most companies hiring in Malta, EOR is simpler. We will tell you honestly whether PEO genuinely fits your structure, or whether EOR serves you better.

How PEO works in Malta, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, and how much control you want to keep, and tell you honestly whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted Maltese partner and structure the shared employer arrangement correctly.

03 — Onboard your people

Compliant Maltese employment terms under the Employment and Industrial Relations Act (EIRA), with the administrative employer functions handled by the partner.

04 — Payroll & compliance

Income tax, Class One social security, and statutory filings handled monthly, while you keep day-to-day direction.

What PEO in Malta costs

As with EOR, two parts: the statutory cost of employment (predictable, once you factor in Malta’s capped, banded social security and its two statutory bonus payments) and the partner service fee.

Employer social security & statutory bonuses

10% of basic weekly wage (Class One, Category I) up to a EUR 559.31 weekly threshold, fixed thereafter at EUR 55.93 a week for employees born on or after 1 January 1962, or EUR 49.04 for those born earlier, plus the statutory Government Bonus and Weekly Allowance, all administered under the shared employer arrangement.

Minimum wage (2026)

About EUR 11,930 a year (EUR 229.44 a week) for 2026, one national rate with no regional variation to track.

Income tax (employee)

0/15/25/35% progressive bands, computed against the correct single, married, or parent table, withheld at source as part of the shared payroll administration.

PEO partner fee

A service fee for the co-employment administration. Under a shared employer arrangement, Malta’s banded social security and statutory bonus payments still have to be administered correctly by someone. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why arrange it through Bradford Jacobs

Why companies arrange Maltese PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Malta’s Class One social security is banded by birth year and capped weekly, not a flat percentage, which makes it easy to misquote a co-employment fee up front. We benchmark across our vetted network for rates typically 15 to 25% below going direct, and renegotiate for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of placements

Two decades placing and managing employment arrangements across global markets, with the local knowledge that prevents costly Maltese compliance mistakes.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own Maltese Ltd, as your Malta presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

The employer duties a Maltese PEO shoulders

Whichever model you use, the underlying Maltese rules are the same. Under a PEO arrangement, the administrative employer functions are handled for you.

Working time, leave & contracts

Compliant Maltese employment contracts and working-time rules (40-hour standard week, an averaged 48-hour ceiling including overtime, 216 hours’ statutory annual leave for 2026). Income tax and Class One social security withheld and filed correctly. Statutory benefits and notice applied properly (Malta has no general statutory severance entitlement).

Statutory protections & exits

Statutory notice, probation, and the protections Maltese employees carry under the EIRA, since dismissal must meet the “good and sufficient cause” standard rather than at-will termination, all handled under the shared arrangement. The value is the same as with EOR: the compliance is handled by people who do it daily. The difference is simply how much of the employer role you keep.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant contract

A compliant Maltese employment contract under the EIRA, issued and maintained for you.

Payroll & filings

Monthly payroll run, with income tax and Class One social security calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: annual leave, sick pay, parental leave, and statutory notice.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how PEO co-employment works in Malta.

What is the difference between PEO and EOR in Malta?

With an EOR, the partner is the sole legal employer of your Maltese staff. With a PEO, you and the partner share the employer relationship, you keep more direct control, they handle the administration. In Malta, true co-employment is uncommon, so EOR is the usual route; PEO suits specific structures.

For most companies, EOR is simpler and faster, especially with no Maltese entity. PEO fits when you want to share rather than outsource the employer role, or have a structure that calls for it. We assess your situation and recommend honestly.

It depends on the structure. Some co-employment arrangements assume or work alongside your own Maltese entity. If you have no entity and want none, EOR is usually the cleaner route. We will confirm which applies to you.

The administrative employer functions, payroll, income tax, Class One social security, statutory bonus payments, statutory benefits, and statutory filings, are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and Maltese law is met.

The statutory employer cost (10% of basic weekly wage in Class One social security, up to a EUR 559.31 weekly threshold then fixed at EUR 55.93 a week for employees born on or after 1 January 1962, or EUR 49.04 for those born earlier, plus the Government Bonus and Weekly Allowance) plus a partner service fee for the co-employment administration. We benchmark across our network for pricing typically 15 to 25% below going direct.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own Maltese Ltd, as your Malta presence develops.

Not sure whether PEO or EOR is right for Malta?

Tell us your structure and headcount and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

Tax and labour data verified July 2026 (Department for Industrial and Employment Relations, Malta Tax and Customs Administration, Malta Business Registry, legislation.mt). Figures change; we confirm the current position when we scope your hire.