Background information

Rapid economic growth in Malta has led to a strong demand for labour. At the same time, the country has faced considerable challenges due to an ageing population and low fertility rates, resulting in a shrinking local workforce. To sustain employment levels—which have reached all-time highs—Malta has increasingly relied on the importation of labour. Over the past decade, the rate of labour migration has been among the highest in Europe, with foreign workers now comprising around one-third of the total workforce and playing a vital role across nearly every sector. However, this growth has also brought about significant strain on the country's infrastructure, environment, and public services, while contributing to rapid social change. In response to concerns around what has been perceived as unrestrained labour importation, Malta published its first labour migration policy for public consultation in January 2025.

Content of measure

Malta’s labour force migration policy aims to introduce a broad set of reforms to improve working conditions for third-country nationals, encouraging the retention of existing foreign workers, and ensuring that employers make a genuine effort to prioritise Maltese and EU nationals.

Grounded in four core principles—retaining existing workers, protecting workers’ rights and conditions, aligning labour migration to workforce needs, and shifting towards a skills-based approach—the policy proposes 32 measures to guide future labour migration.

The consultation document highlights that employers will face new restrictions if a significant portion of their third-country national workforce leaves or is dismissed. For example, small companies will be barred from hiring new foreign workers if over 50% of such staff depart within a year, with thresholds set at 40% for medium-sized companies and 35% for large ones. Certain sectors, including healthcare and elder care, as well as micro-enterprises, will be exempt from these rules. To promote workforce stability, work permits will now be renewable every two years rather than annually, provided a two-year employment contract is offered. Permit fees are also being adjusted—renewal fees will be halved to €150, while new application fees will double to €600, with discounted rates for key sectors. The government will also strengthen compliance by enabling authorities to conduct desk-based investigations, and employers found guilty of abuse will be banned from recruiting further staff.

The policy suggests extending the grace period for unemployed foreign workers to remain in Malta from 10 days to up to 60 days, provided they can support themselves. Employers will be obliged to pay salaries via bank transfers, reducing abuse associated with cash payments and fraudulent payslips. A study on market wages will inform salary thresholds for different skilled occupations. Companies will also need to demonstrate that they made efforts to recruit locally—advertising vacancies through Jobsplus and EURES for at least three weeks and justifying any rejections of EU applicants. Firms will be subject to minimum requirements for employing Maltese or EU nationals before hiring from outside the bloc.

Additionally, prospective foreign workers must complete a pre-departure course on Maltese culture, language, and values to promote integration. Upskilling initiatives and the expansion of the skills card system—starting with construction—will also support this goal.

Use of measure

The document is a consultation document and thus has not been implemented yet.

Target groups

Workers	Businesses	Citizens
Migrants or refugees in employment	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Unknown	Unknown

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

The document was drafted by the government and presented to the Malta Council for Economic and Social Development (MCESD) for discussion. The document was also published, and a public consultation exercise was instigated that garnered over 300 submissions. Amongst these submissions were the views of major employer associations and trade unions.

Views and reactions

In a reaction document, the Malta Chamber broadly supported the labour migration policy but emphasised the need for greater clarity and flexibility in several areas to ensure effective implementation. Clearer definitions on how minimum termination rates are calculated, especially for companies operating within group structures or those with seasonal fluctuations and fixed-term contracts, were highlighted. It also called for clarification on whether workforce calculations include subcontracted workers and how criteria will apply to temping and outsourcing agencies. The Chamber recommended the introduction of renewable seasonal work permits, supports prioritising local and EU nationals while advocating flexibility for industries facing persistent shortages, and calls for transparency in wage rate studies. It also urges the government to tailor Memoranda of Understanding (MOUs) with other countries to favour ethical employers and professional recruiters, while addressing long-standing regulatory gaps in outsourcing and recruitment practices.

Malta Employers expressed concerns over the lack of clarity in disqualification criteria and called for a fair appeals process. They argued that the definition of 'termination' should exclude voluntary resignations, probationary terminations, and disciplinary dismissals. They also noted that high labour turnover is often driven by factors beyond employers' control, such as worker mobility within the EU. Additionally, they stressed the importance of workforce retention and warned against penalising employers for natural or seasonal fluctuations in staff levels.

The Malta Chamber of SMEs in a consultation document expressed concerns that the proposed labour migration policy could unfairly penalise employers, particularly small businesses, for factors beyond their control, such as voluntary resignations or high employee turnover linked to labour mobility. It emphasised the need for a more balanced and realistic approach that reflects market dynamics and sector-specific challenges.

In a document on the topic, the General Workers’ Union (GWU) stated that it supports Malta’s labour migration policy as a necessary step toward reform but stresses the urgent need to address systemic exploitation and over-reliance on Third Country Nationals (TCNs) in low-wage sectors. The GWU highlights concerns over precarious conditions, wage suppression, limited mobility due to single-work permits, and the high turnover of TCNs. It calls for fair wages, better job security, and the right for migrant workers to change employers. The union emphasises the importance of integrating migrant workers socially and economically, improving access to training, promoting collective bargaining, and aligning with ILO standards. Strong enforcement, transparency, and accountability—including naming and prosecuting abusive employers—are viewed as essential for meaningful change. The GWU also supports expanding rights for migrant workers and ensuring they are automatically enrolled in unions to protect them from abuse and exclusion.

The UHM - Voice of the workers, in comments to the media, highlighted how the policy does not discuss housing, an area where TCNs are regularly exploited. They also noted that aspects related to organisations' turnover requires further discussion.

the Centre for Labour Studies - University of Malta recommended facilitating procedures for family reunification for non-EU migrant workers, and more effective monitoring of areas where health and safety concerns are high, such as in construction. The Centre urged the government to place migrant workers' voices and issues at the centre of policy, noting their lack of involvement in drafting the document. The Centre also highlighted the need for stronger support structures, including training for government officials providing guidance.

Sources

• 08 January 2025: Government of Malta - Malta Migration Policy consultation document (www.gov.mt)
• 08 January 2025: Times of Malta - Unveiled: Malta's plan to regulate foreign workers and curb abuse (timesofmalta.com)
• 20 January 2025: Malta Chamber - The Malta Chamber Welcomes Labour Migration Policy as a Positive Development (maltachamber.org.mt)
• 30 January 2025: Malta Chamber SMEs - Consultation document (www.smechamber.mt)
• 30 January 2025: Centre for Labour Studies (University of Malta) response to the Malta Labour Migration Policy Consultation Document, 2025 (www.um.edu.mt)
• 01 February 2025: GWU - Proposals for labour migration policy (gwu.org.mt)
• 09 February 2025: Times of Malta - Migration policy consultation draws 300 submissions (timesofmalta.com)