Malta’s Labour Migration Framework Undergoes Major Reform

Malta’s labour migration framework is undergoing significant changes with the implementation of a new Labour Migration Policy, with the first phase of measures taking effect on 1 August 2025. This comprehensive policy overhaul directly impacts both employers and third-country nationals (TCNs) working in Malta.

Key Policy Changes Effective from 1 August 2025

Termination Rate Monitoring

One of the most notable changes introduces monitoring of employer termination patterns. Companies exceeding specific termination rate thresholds will fail the Labour Market Test and be barred from recruiting new TCNs. The thresholds vary by company size.

Extended Grace Period for Terminated Workers

The grace period for TCNs whose employment is terminated has been substantially extended from the current 10 days to 30 days, with the possibility of an additional 30-day extension (total of 60 days) if the individual can demonstrate financial self-sufficiency.

Revised Fee Structure

• First-time Single Permit applications: Increased from €300 to €600
• Renewal fees: Reduced from €300 to €150 per year
• Change of employer: €600
• Change of designation: €300
• Healthcare and elderly care sectors: Reduced flat fee of €150

Enhanced Salary Thresholds

New minimum salary requirements have been implemented for highly qualified worker applications:

• Key Employee Initiative (KEI): Increased from €35,000 to €45,000 annually
• Specialist Employee Initiative (SEI): Increased from €25,000 to €30,000 annually

Mandatory Job Advertising Requirements

Employers must now advertise positions on local platforms for at least three (3) weeks within two (2) months prior to applying to hire TCNs. From October 2025, vacancies must also be listed on the EURES portal. Exemptions apply to healthcare, elderly care, disability care, student employment, sports, and Malta Enterprise-endorsed placements.

However, for highly skilled worker applications, the vacancy must be advertised on an appropriate local media platform for a minimum period of two (2) weeks.

Workforce Application Limits

Employers can only apply for additional TCNs based on fixed percentages of their existing workforce:

• Micro firms (1-9 employees): 200% increase limit
• Small firms (10-49 employees): 100% increase limit
• Medium firms (50-249 employees): 50% increase limit
• Large firms (250+ employees): 25% increase limit

Tourist Visa Restrictions

TCNs entering Malta on non-work visas (such as tourist visas) will no longer be permitted to apply for single permits while in-country. Exceptions apply to sportspersons, with discretionary exemptions available in exceptional cases.

Partners and Families

Partners of Maltese nationals and parents of Maltese nationals who are under the age of 23 will be exempt from applying for a Single Permit. In such cases, an employment license would be required.

Interim Permits for Visa Waiver Countries – 1 October

As of 1 October, TCNs from visa waiver countries who apply for single permits within 60 days of entering the Schengen Area will receive interim permits allowing them to remain in Malta during application processing. Those applying between 61-90 days must await the outcome from outside the Schengen Area.