Malta
Worked in Malta? Any pension you built up here is yours to keep and can usually be paid to you abroad — but you have to claim it; it won't start automatically. The full state pension age is 65, with early access from 61. On totalization, Malta has bilateral totalization agreements, so the years you worked here may combine with other countries you've worked in. Below is Malta's system at a glance and what expats should check.
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Overview
Malta operates a Pay-As-You-Go (PAYG) mandatory state pension (Pillar 1) funded through social security contributions under the Social Security Act (Cap. 318).
The primary benefit is the Two-Thirds Pension, an earnings-related contributory retirement pension calculated as two-thirds of the pensionable income based on the best years of contributions. A National Minimum Pension acts as a safety net for those with insufficient contribution histories, and a non-contributory Age Pension (means-tested) exists for those who do not qualify for contributory benefits.
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A separate Service Pension applies to public officers under the Pensions Ordinance (Cap. 93). Pillar 2 voluntary occupational pension schemes have existed since 2015 but participation remains critically low (approximately 2% of working-age population as of end-2024). Following Budget 2025, the government launched a public consultation in June 2025 on a proposed auto-enrolment occupational pension regime targeting private sector implementation by June 2026, with a minimum employee contribution of €50/month and voluntary employer contributions.
Pillar 3 personal retirement schemes (PRS) are regulated by the MFSA and benefit from tax incentives. From 2026, all retirement pension income is fully exempt from income tax for individuals aged 61 and over, up to a cap of €37,104 annually (increased from €16,636 under LN 53 of 2026). The state pension system faces significant demographic pressure, with the old-age dependency ratio projected to rise from 27.1% in 2022 to 65.4% by 2070, and the public scheme benefit ratio projected to decline from 39% to 32% by 2070.
~39% (public scheme benefit ratio 2022; projected to decline to ~32% by 2070; Two-Thirds Pension theoretically up to 66.7% of pensionable income for maximum contributors)
Pillar 1: Mandatory contributory state pension (PAYG, earnings-related Two-Thirds Pension and flat-rate National Minimum Pension) plus non-contributory Age Pension (means-tested). Pillar 2: Voluntary Occupational Pension Schemes (established 2015; auto-enrolment regime proposed for June 2026 implementation; ~2% participation as of end-2024; six licensed providers). Pillar 3: Voluntary Personal Retirement Schemes (PRS), regulated by MFSA, with tax incentives since 2015.
Bismarckian (earnings-related, contributory PAYG) with means-tested non-contributory safety net and voluntary supplementary pillars
Employee
10% of basic weekly wage (Class 1, employed persons; graduated scale with fixed euro amounts at lower wage bands — e.g. €6.62/week for wages up to €229.44; maximum weekly contribution ~€55.93 for those born 1962+ in 2026)
Employer
10% of basic weekly wage (Class 1; equal to employee share; graduated scale; maximum weekly contribution ~€55.93 for those born 1962+ in 2026)
Self-Employed
Class 2 (self-occupied): 15% of annual net income from previous year; weekly rates range from ~€31.97 (lower income brackets) to €83.89 (higher income brackets) for 2026. Class 3 (self-employed with passive income only): reduced rates apply under specific conditions.
Notes
Contribution weeks: maximum 52–53 per year (depending on number of Mondays); maximum average of 50 weeks/year counts for pension calculation; minimum 15 weeks/year average for Two-Thirds Pension eligibility (20 weeks/year for Service Pension holders). Credits granted for unemployment, sickness, child-raising (4 years per child for first 3 children, as of 2024 regardless of pre-birth employment), and education. From 2026, employment is no longer required to make voluntary contributions solely to meet the 10-year minimum eligibility threshold. Social security contribution rates remained unchanged in Budget 2025 and 2026 (routine annual threshold adjustments only, ~3% increase in caps for 2026).
Common questions
What is the retirement age in Malta?
The full state pension age in Malta is 65. Early retirement may be possible from 61.
Can I claim a Malta pension if I live abroad?
Yes. A pension you've earned in Malta stays yours wherever you retire, and can usually be paid into an overseas account once you reach pension age. It won't start automatically, though — you need to claim it, typically a few months in advance, through Malta's pension authority.
Do totalization agreements affect my Malta pension?
Malta has bilateral social-security (totalization) agreements. These can let you combine the years you worked in Malta with years in partner countries to meet a minimum qualifying period, so short stints aren't wasted. Which partners and rules apply depends on your own work history.
How is the pension system structured in Malta?
Bismarckian (earnings-related, contributory PAYG) with means-tested non-contributory safety net and voluntary supplementary pillars Pillar 1: Mandatory contributory state pension (PAYG, earnings-related Two-Thirds Pension and flat-rate National Minimum Pension) plus non-contributory Age Pension (means-tested). Pillar 2: Voluntary Occupational Pension Schemes (established 2015; auto-enrolment regime proposed for June 2026 implementation; ~2% participation as of end-2024; six licensed providers). Pillar 3: Voluntary Personal Retirement Schemes (PRS), regulated by MFSA, with tax incentives since 2015. It includes 5 schemes in our directory.