This article examines and reviews the significant changes relating to payroll for the financial year 2024.
· FSS Submissions
· Cost of Living Adjustment (COLA)
· Modifications to the Minimum Wage
· Vacation Leave Entitlement
FSS Submissions
Every year the employer has the obligation to provide his employees with the yearly FS3. This will mainly include the gross salary for the year, any fringe benefits, total tax deductions, and information on Social Security and Maternity Fund contributions for the previous year.
The employer has the duty to submit the yearly FS7.
The FS7 is a summary of all the FS5s submitted monthly during the year. This will include the number of FS3s issued, and thus the total employee turnover for the year, the Gross emoluments and tax deductions, The social security contributions and Maternity fund Contributions due to the Commissioner for Revenue (CfR). Lastly, the FS7 will also include the payments made to CfR during the financial year.
The deadline for submitting the annual FS7 & FS3s for the year 2023 is Thursday 15th of February 2024.
Cost of Living Adjustment (COLA)
During the budget for the year 2024, the government announced that the Cost of Living Adjustment for the year 2024 will be €12.81 per week. This amounts to €0.32 hourly rate for part-time employees and €55.51 monthly equivalent to €666.12 yearly for full-time employees.Employers are required to incorporate this increase in their employees' payroll calculations starting from 01/01/2024.
Minimum Wage
As of 1st January 2024, the minimum wage in Malta has been revised.Below we have prepared a table to easily explain the increase for different individuals.
| 2023 | 2024 |
Full time Individuals aged 18 years and over | €192.73 /week | €213.54 /week |
Full time Individuals aged 17 years and over | €185.95 /week | €206.76 /week |
Full time Individuals aged 17 years and under | €183.11 /week | €203.92 /week |
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Part time Individuals aged 18 years and over | €4.82 /hour | €5.34 /hour |
Part time Individuals aged 17 years and over | €4.65 /hour | €5.17 /hour |
Part time Individuals aged 17 years and under | €4.58 /hour | €5.10 /hour |
Vacation leave
Every full-time employee with a 40-hour working week is eligible for paid annual leave. This is equivalent to 2 days per month, adding up to 192 hours and any days for national or public holidays which falls on a Saturday, Sunday or weekly day of rest.
For the year 2024, every full-time employee is eligible of 30 days leave, equivalent to 240 hours.This is due to the occurrence of six national/public holidays falling on weekends in the year.
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