Malta | Maternity Fund Contribution rules

Malta | Maternity Fund Contribution rules

The employers of all male or female employees (full-time or part-time or casual workers) on the employers’ Final Settlement System (FSS) are obliged to pay the Maternity Fund Contribution for every employee, whether or not the Social Security Contributions (SSC) are being paid by another employer.

Exemptions

Employers are not obliged to pay the Maternity Fund Contribution for these categories of employees:

– employees in the general government sector, authorities, agencies and public corporations;

– employees who are on unpaid leave and are not paying National Insurance contributions (NI);

– directors who are on the FSS system but pay Class 2 Social Security Contributions otherwise known as the self-employed rates;

– employees who are exempted by the Social Security Department from paying National Insurance contributions, such as pensioners over 65 years of age, certain low income casual workers and expatriate employees who pay their Social Security contributions in another country.

The Maternity Fund Employers’ Contribution has come into force on July 6, 2015 read more.

Maternity Fund Contribution Rates based on employee’s age and basic wage are available here.

Download:
  Maternity Fund Employers’ Contribution – IRD official exemption rules policy IRD
  Maternity Fund Employers’ Contribution – Social Security Department official exemption rules policy
  Maternity Fund Contributions calculator
  New FS5

5 thoughts on “Malta | Maternity Fund Contribution rules

  1. Is a person earning a minimum wage classified as a low wage earner for the maternity fund contribution and therefore no contribution is required to be paid by the employer?

    • The employer of all full-time and part-time employees, no matter what wage, is to pay a maternity fund contribution per week of employment for each employee during the year, payable monthly with the FS5. Some exemptions apply.

  2. Are you sure with your post whereby the Maternity Fund Contribution is payable on behalf of part-time employees whether or not the Social Security Contributions (SSC) are being paid by another employer.

    The HR Handbook of the Malta Employers Association states: “What happens if an employee has more than one employment? Only the employer of the employees’ principal employment has to pay the 0.3% contribution.”

    Could you guide me on the correct interpretation.

    • I confirm that my post is correct and that is that, employers are to pay the Maternity Fund Contribution in respect of all their part-timers.

      I have communicated with the Malta Employers Association with respect to their handbook’s MFC FAQ regarding your query. The MEA have responded immediately and indicated that their handbook has now been amended accordingly and it now conforms to government’s direction.

      • For further information and confirmation contact the Maternity Fund Contribution Customer Care Office on Tel: +356 20908311


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