National Insurance in Malta (2026): Class 1 NI, Weekly Categories and Employer Match
Employed persons in Malta pay Class 1 National Insurance (NI) calculated on weekly gross earnings. For persons born on or after 1 January 1962: Category B (up to EUR 213.54/week gross) = flat EUR 21.35/week; Category C (EUR 213.55 to EUR 532.28/week) = 10% of the weekly wage; Category D (above EUR 532.28/week) = flat cap EUR 53.23/week. The employer pays an equal contribution in every category. NI is charged weekly and is NOT deductible from the income tax base. Verify all figures with the Commissioner for Revenue (CFR) or a qualified accountant.
Class 1 National Insurance: overview and the weekly basis
Employed persons in Malta pay Class 1 National Insurance (NI) contributions, which fund the social security system administered by the Department of Social Security under the Social Security Act (Cap. 318). Key structural point: NI is calculated WEEKLY, not monthly or annually. Even though payslips often express the deduction as a monthly figure, the underlying computation always uses weekly gross earnings. To convert an annual salary to a weekly figure, divide by 52. The NI category and contribution rate depend on two things: the employee's gross weekly earnings AND the year of birth: - Persons born on or after 1 January 1962: Categories B, C and D apply (described below). - Persons born before 1 January 1962: different category boundaries and rates apply; verify with the CFR or a qualified accountant. This guide covers the born-on-or-after-1962 categories, which apply to the majority of the working-age population in 2026. NI is collected by the CFR and remitted to the Department of Social Security. It funds retirement pensions, sickness benefits, maternity benefits and other social security provisions. Always verify category boundaries and contribution amounts with the CFR or a qualified accountant.
Category B, C and D: the three NI bands for 2026
For employees born on or after 1 January 1962, the three NI categories for 2026 are: Category B (flat rate -- lower earners): Weekly gross earnings up to EUR 213.54. NI = EUR 21.35 per week (flat amount regardless of exact earnings within the band). Category C (percentage rate -- middle earners): Weekly gross earnings from EUR 213.55 to EUR 532.28. NI = 10% of the weekly gross wage. For example: weekly gross EUR 461.54 -> NI = 10% x 461.54 = EUR 46.15 per week. This band covers many full-time employees on typical Maltese wages. Category D (flat cap -- higher earners): Weekly gross earnings above EUR 532.28. NI = EUR 53.23 per week (flat cap regardless of how far above EUR 532.28 earnings go). The cap means NI does not increase with very high salaries. The employer pays an NI contribution equal to the employee's contribution in each category. If the employee pays EUR 46.15 under Category C, the employer also pays EUR 46.15 for that employee that week. Total NI on the payroll for that employee is EUR 92.30 per week. All figures should be verified with the CFR or a qualified accountant, as category boundaries and flat rates are reviewed periodically.
NI is not deductible from the income tax base
A critical feature of the Maltese payroll system is that NI contributions are NOT deductible from the income tax base. In many EU countries, social contributions reduce gross income before income tax is applied, lowering the taxable amount. Malta does not work that way. Instead, the two deductions run in parallel: - NI: calculated on gross weekly earnings using the category bands. - Income tax: calculated on chargeable income, which broadly equals full gross salary (no NI deduction first). As a result, a Maltese employee effectively pays both NI and income tax on the same gross earnings -- neither charge reduces the base for the other. Practical implication: when estimating take-home pay, subtract both the NI amount AND the income tax from gross pay. Do not first subtract NI and then apply the tax bands to the reduced figure -- that would underestimate income tax. For the worked example in the income-tax-explained guide: gross EUR 24,000 per year -> NI approximately EUR 200 per month AND income tax approximately EUR 216.67 per month, together reducing EUR 2,000 gross to approximately EUR 1,583 net -- without NI being credited against income tax. Always verify with the CFR or a qualified accountant.
How to calculate monthly NI from a monthly salary
Because NI is a weekly calculation, converting a monthly salary for NI purposes requires using the weekly equivalent: Step 1: convert monthly gross to annual (monthly x 12). Step 2: convert annual to weekly (annual / 52). Step 3: identify which NI category applies to the weekly amount. Step 4: calculate weekly NI. Step 5: convert weekly NI to monthly (weekly NI x 52 / 12). Example: gross EUR 1,800 per month. Annual = 1,800 x 12 = EUR 21,600. Weekly = 21,600 / 52 = approximately EUR 415.38. Category C applies (EUR 213.55 to EUR 532.28), so NI = 10% x 415.38 = EUR 41.54 per week. Monthly NI = 41.54 x 52 / 12 = approximately EUR 180. The employer independently pays a matching EUR 41.54 per week as its share of Class 1 NI -- this is an employer cost and does not appear as a deduction on the employee's payslip. All figures are illustrative. Verify with the CFR or payroll software.
FAQ
Why is National Insurance calculated weekly rather than monthly in Malta?
The Social Security Act (Cap. 318) establishes NI on a weekly contribution basis, reflecting the historical structure of Malta's social insurance system. Regardless of whether you are paid monthly, fortnightly or weekly, NI is always computed using weekly gross earnings (annual salary / 52). The category boundaries (EUR 213.54 and EUR 532.28) refer to weekly earnings, not monthly figures. Payroll software and the CFR handle the conversion when producing monthly payslips.
Does the employer contribute National Insurance on top of salary in Malta?
Yes. The employer pays a Class 1 NI contribution exactly equal to the employee's contribution. If the employee pays EUR 46.15 per week under Category C, the employer also pays EUR 46.15 per week. These employer contributions are an additional business cost on top of gross salary and do not appear as deductions on the employee's payslip. Verify the equal-contribution rule with the CFR or a qualified accountant.
What is the maximum NI an employee can pay per week in Malta in 2026?
The maximum is EUR 53.23 per week under Category D, which applies when gross weekly earnings exceed EUR 532.28. Above that threshold, NI is capped at EUR 53.23 per week regardless of actual earnings. The employer pays a matching EUR 53.23 per week. Verify the current Category D cap with the CFR or a qualified accountant, as contribution rates and category boundaries are reviewed annually.
Are there different NI rates for persons born before 1962?
Yes. The category boundaries and contribution amounts described in this guide (Category B EUR 21.35 flat, Category C 10%, Category D cap EUR 53.23) apply to persons born on or after 1 January 1962. Different parameters apply to persons born before that date. If you or an employee you are computing payroll for was born before 1 January 1962, confirm the applicable categories and amounts with the CFR or a qualified accountant.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.