Overtime tax calculator Malta
Full-time employees on a lower basic wage can have their overtime pay taxed at a flat 15% instead of their normal rates.
Enter your basic weekly wage, your overtime rate and hours. You get the flat-rate tax and the part taxed normally.
How it's calculated
- Your overtime qualifies if your basic weekly wage is €375 or less, your job is full-time and you are not in a managerial post.
- Each qualifying hour counts at your overtime rate, but at most twice your basic hourly rate, which is the basic weekly wage divided by 40.
- Qualifying overtime income is capped at €10,000 a year and taxed at 15%. Anything above is taxed with your other income.
An example
On a basic wage of €350 a week, 200 hours of overtime at €13.13 come to €2,626, taxed at 15%: €393.90.
Frequently asked questions
Is the flat-rate tax final?
Yes, unless you choose otherwise. It is not credited against your other tax or refunded.
Can I opt out?
Yes. You can choose to have your overtime taxed at your normal rates through the FSS, which can be lower if your income is small.
What about married couples?
The rules apply separately to the overtime of each spouse.
Key terms
- Qualifying overtime
- Overtime in a full-time, non-managerial job with a basic weekly wage within the limit.
- Basic weekly wage
- The wage used for social security, without overtime, bonuses or allowances.
Up-to-date official data
Data checked against the official source on .
We check the official sources automatically, every day.
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