Malta | Payment of missing social security contributions

Malta | Payment of missing social security contributions

Concession to pay missing social security contributions

As from the 1st January 2015 any person who is employed or in self-occupation and has reached the age of 59 but not yet the age of 65 may pay up to five years of arrears of social security contributions (SSC) at the SA rate applicable in the year the claim is made.
(e.g. if the claim is made in the year 2015 the rate is €28.47 per social security contribution.)

10 thoughts on “Malta | Payment of missing social security contributions

    • National Insurance contributions or Social Security Contributions are paid by the employer if the person is employed. In the case of self employed or self occupied persons the NI or SSC is to be paid by the individual in April, August and December of each year.
      Rates for Class Two Social Security Contributions are based on the annual net profit or income for the year preceding the contribution payment year and may be found here. Persons who in the preceding year did not earn an annual net profit or income exceeding €910 may be eligible for an exemption from the payment of Social Security Contributions in the contribution payment year.
      For more information on how to pay your national insurance contributions click here.

  1. My wife worked for only 6 years. She had stopped working to take care of our two children. Are the missing contributions, because of this fact, added in her favour for pension entitlement purposes?

    • Unfortunatley not enough information is available from your post. Stopping from work to take care of children in Malta did not constitute a basis to receive a credit of unpaid NI contributions. I would suggest that you contact the SPIC (Social Policy Information Centre on 159) to obtain further information and pension prediction entitlement based on your wife’s contribution history.

  2. Can anyone pay missing contributions at this rate if they are say 53 years of age – self occupied / employed for past 10 years. Also if someone missed paying 1 year in 1977 but paid before and after that does someone lose his pension as I read they have to be consecutive not just a total amount of contributions.

    • The current government scheme for settling unpaid past contributions covers only five years. You may find further details on this scheme on this link.

      Full-pension entitlement for those persons born after 1961 is calculated on the average of the basic wage or salary or net income or net earnings of the best 10 calendar years within the last 40 calendar years. Further entitlement calculation for pensioners in Malta born before 1962 may be found on this link.

      Contributions paid contribute to the pension calculation and are not lost. The 2014, 2015 and 2016 Pension entitlement in Malta may befound on this link.

      For further information follow our Pensions dedicated Blog page.

      • I was born in 1957. I used to work as a salesman in 1992 with a company for 2 months. Although the employer always deducted the social security from my salary, he went bankrupt and he did not pay my deducted contributions to the Inland Revenue Department. Although I have 2 months social security contributions missing, I have paid social security contributions for more than 35 years. So if I have paid for more than 35 years (around 36 years):

        1. Will I have problems with my pension when I retire because of those 2 missing months?
        2. For the past 3 years I have paid the weekly social security contribution at the rate of 34.49 Euros. How much will my pension be when I retire at 63 (At the moment I am 59)?

        • Although the information you provide is not sufficient, the 2 months you mention should not affect your pension calculation. It is advisable that you go to the closest district office and pose all these questions to the staff at the department since they will have all your data at hand with respect to the social security contributions and the contributions paid along the years. You should also ask the department for a prediction of your pension when you retire, based on these facts. You may also call SPIC on telephone 159.

  3. I am due to retire in 2016 at the age of 62 years in Malta. I have around 10 years of missing NI contributions throughout the years.

    Would be possible to pay back the unpaid social security contributions of the 10 years after I reach the age of 61? Would this effect my pension? I do not wish to pay back all the amount of the unpaid contributions as the amount would be exorbitant. Is this possible?

    • The concession only permits you to settle five years of your social security contributions which are currently in arrears. Each missing contribution will cost you Eur28.47 based on the 2015 SA category and would therefore reach the sum of around Eur7,000 in total. All payments must be settled before applying for your pension as any payments made before the application should boost up your pension calculation.

      For further details on your specific case contact SPIC on telephone number 159.

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