Malta Labour Migration Update – Stricter Labour Market Testing, Extended Grace Period & Other Reforms
Overview
Starting 1 August 2025, Malta’s revised labour migration policy implements a range of reforms aimed at tightening the hiring of third-country nationals (TCN), enhancing domestic employment protection, and reinforcing compliance enforcement by employers. Significant modifications encompass more stringent advertising criteria prior to recruiting TCNs, updated salary standards, and an adjusted grace period for TCNs whose jobs have been ended.
Key Features of the New Rules
The main elements of Malta’s reform include:
Vacancy advertisement requirement: Employers are now required to post job vacancies for 2–3 weeks prior to applying for a TCN, and starting October 2025, advertisement on the national portal and EURES will be compulsory
Extended grace period for terminated TCNs: A TCN whose job concludes can now remain for 30 days and possibly up to 60 days to find a new position, contingent upon demonstrating financial self-sufficiency
Higher salary thresholds for skilled programmes: For instance, the Key Employment Initiative (KEI) now mandates a yearly gross salary of no less than €45,000, while the Specialist Employment Initiative (SEI) requires at least €30,000
Stricter labour market testing & termination-rate monitoring: Employers will be closely examined for termination trends and could be restricted from hiring new TCNs if certain limits are surpassed
Revised fee structure & payment method: Initial individual permits now cost €600, renewals are €150 annually, and all salary disbursements to newly hired TCNs must be conducted electronically
Challenges & Considerations
Despite the long-term benefits of a more structured system, stakeholders should be aware of several immediate implications:
Increased recruitment lead-time: The necessity of posting vacancies and the pre-advertisement phase result in a longer hiring process for TCNs
Compliance burden on employers: Increased oversight on termination rates, salary limits, and advertisement proof will elevate administrative responsibilities
Impact on foreign workers: TCNs whose jobs end must swiftly seek new employment during the grace period or face the possibility of having to leave Malta
Possibility of backlog or application delays: As the system evolves, there could be slower processing times or the chance of applications being denied for non-compliance
Travel and status risks: Employees depending on prior agreements might encounter violations if the methods of salary payment are altered or if contract terms are not fulfilled
What This Means for Employers & Foreign Workers
For companies hiring TCNs and for foreign nationals residing in Malta, the following actions are highly recommended:
Examine recruitment schedules and processes: Allocate time for job advertisement and confirm that postings align with the updated criteria
Guarantee timely reporting of termination and engagement: Employers need to keep track of submitting forms for workers who have been terminated or engaged; any delays could impact future applications
Get ready for grace-period situations: When a TCN's job concludes, confirm they understand the 30- to 60-day timeframe and possess the financial resources to make use of it
Revise internal policies and documentation: HR and global mobility teams need to be trained on the revised fee structure, electronic payment mandates, labour-market testing paperwork, and compliance oversight
Key Takeaway
Malta’s updated labour migration policy signifies a notable change towards enhanced accountability, better alignment with labour market demands, and improved safeguarding of local workers. Although the reforms add complexity and extend the time-to-hire for TCNs, both employers and individuals who actively synchronize their actions will be more prepared to adjust successfully. Advance planning is essential for transforming this transition into a competitive edge.
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About Anywr
Anywr is a French international group specializing in international mobility and workforce solutions.
Founded in 2012, Anywr operates in 12 countries across 4 continents. Our mission is to support companies in addressing their Human Resources challenges. We respond to your needs in terms of international mobility, particularly in terms of immigration policies, relocation, the implementation of mobility policies and EOR.
Do you have a mobility project for your teams? Contact us!