On 1 August 2025, Malta implemented the first phase of wide-ranging labour migration reforms, marking one of the most significant updates to the country’s labour and migration policies in recent years. The reforms, to be rolled out in two distinct stages, August and October 2025 as outlined below, are designed to combat abuse, enhance transparency, and ensure that labour migration better aligns with Malta’s national employment priorities.

A major reform concerns vacancy requirements. Before hiring a TCN, employers will now be obliged to advertise vacancies locally and on recognised EU employment portals, ensuring that Maltese, EEA, Swiss nationals, and TCNs already residing in Malta are given priority. Job adverts must remain live for at least three (3) weeks within the two (2) months before the complete submission of the application on appropriate local media platform, and employers must justify the rejection of any local or EU applicants. Employers unjustifiably dismissing staff cannot rehire for the same role within 12 months. These advertising rules will become stricter in October, with mandatory portal postings for most roles unless specifically exempted as per Identita’ fact sheet.

To encourage longer-term employment relationships, a new fee structure for work permits will take effect. First-time TCN permits and changes of employer will cost €600, while renewals remain at €150 annually. Designation changes will incur a €300 fee, though workers in healthcare, elderly care, and disability services will continue to benefit from reduced rates.

New salary thresholds for specialist initiatives have been introduced, with Key Employee Initiative (KEI) positions requiring a minimum gross annual salary of €45,000 and Single Employment Initiative (SEI) roles set at €30,000. Additionally, TCNs arriving in Malta on non-work visas, such as tourist visas, will no longer be able to apply for a work permit from within Malta, preventing misuse of visa-free entry.

Extension of grace period – Initially TCNs whose employment is terminated will avail from a grace period of thirsty (30) days to remain in Malta and seek new employment. This may be extended for an additional thirty (30) days (up to 60 days in total) subject to proof of self sufficiency.

Renewal processes will also include verification checks to ensure that employers continue to honour the terms of the original employment contracts, and limits on TCN hiring will be introduced based on company size. The caps are designed to maintain a balanced workforce and prevent over-reliance on TCN labour.

At the heart of these changes is a focus on fairer recruitment practices and greater accountability among employers hiring third-country nationals (TCNs). A key measure introduces strict minimum termination rates for employers. Companies with excessively high turnover, defined as more than 50% for small firms, 40% for medium-sized firms, and 35% for large employers, will be restricted from hiring new TCN workers. This measure, to be applied gradually over the 12 months, aims to discourage unjustified dismissals and promote workforce stability. Jobsplus will oversee the monitoring and notify employers found in breach.

In addition, employers will face tighter obligations to report employment engagements and terminations within four days. This measure aims to ensure up-to-date data, reduce the risk of system manipulation, and limit overstays by TCNs whose employment has ended. Failure to comply could result in suspension of new TCN hiring until the situation is corrected.
The reforms also reinforce existing social obligations. Employers who fail to meet their duty to employ at least 2% of their workforce as persons with disabilities, or make equivalent contributions to the Lino Spiteri Foundation, will not be permitted to hire new TCNs until they regularise their position.

From October 2025, additional measures will come into effect. All salaries of newly engaged TCNs must be paid electronically through banks or licensed financial institutions to improve transparency and wage traceability.

TCNs from visa waiver countries applying for a Single Permit within sixty (60) days of arrival will be granted a temporary permit during processing, while victims of human trafficking will benefit from fee exemptions and more secure residence documentation.

These reforms reflect Malta’s commitment to building a fair, transparent, and well-regulated labour market that meets the country’s needs while safeguarding workers’ rights. By phasing in the measures, the government aims to give employers time to adjust their practices and policies, ensuring a smooth transition to the new system.

For more information or guidance on how these reforms may affect your organisation, feel free to reach out to Ian Mercieca or Marouska Farrugia from our team.