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Background to the Employment Law Amendment
The Employment Law Amendment Malta has introduced envisages new rules regulating the payment of wages for third-country nationals (TCNs) working in Malta. Effective 1 October 2025,the amendment to the Employment and Industrial Relations Act (EIRA) aims to curb abuse and ensure that wages earned by TCNs are paid exclusively through bank or electronic transfers, thereby strengthening transparency and employee protection. This amendment has been implemented into Article 11(1) EIRA, which is the opening provision of the section of the EIRA regulating wages and their payment.
Overview of Article 11(1) EIRA
Article 11(1) states that wages payable to employees in Malta shall be paid in money being legal tender in Malta, that is, in Euro. Every payment of such wages made in any other form, and any covenant in any contract providing for another form of payment, shall be null and void. The provision further clarifies that payment of wages by cheque or to a bank account of the employee is considered as payment in legal tender where payment in this manner is customary or necessary or is consented to by the employee concerned.
What has changed for third-country nationals
The above general rules still hold today. However, the new amendment specifically targets TCNs (as defined by the Immigration Act) whose employment commenced on the 1st October 2025 and is governed by Maltese Law. For those employment relationships which commenced after that date, wages earned shall be paid exclusivelyby means of a bank transfer to an account held in the name of the employee or through an electronic transfer facilitated by an accredited and licensed financial institution.
Purpose and impact of the Amendment
By designating bank-transfers or electronic transfers as the sole permissible mode of payment of wages to TCNs, the legislator aims to afford better protection to wages payable to TCNs working in Malta. This amendment prohibits payment of such wages in cash, and allows the competent enforcement authorities more visibility and therefore more certainty as to whether the law concerning the payment of wages is being adhered to in full, and whether relevant taxes are being deducted according to law. The new article 11 is also, indirectly, recognizing EU legislative acts which, in broad terms, establish that every worker has the right to open a bank account.
Further Amendments to the EIRA in 2025
This amendment is the second one effected to EIRA in 2025, the other amendment being introduced on the 6th of August 2025, and focused on strengthening enforcement of EIRA breaches. The relative news item is available here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
