Malta : institutions, policies and practices for enforcing minimum wage compliance

Abstract

This working paper examines the legal, institutional, and practical framework governing minimum wage enforcement in Malta, within the context of Eurofound’s comparative study on non-compliance across EU Member States . It analyses the role of the Department for Industrial and Employment Relations (DIER) as the primary enforcement authority, outlining inspection practices, sanctions, preventive measures, and recent digital reforms. The report evaluates the contribution of social partners within Malta’s tripartite industrial relations system and highlights EU-level cooperation through the European Labour Authority. Key challenges identified include undeclared work, vulnerabilities among third-country nationals, evidentiary burdens on employees, and historical resource constraints within the inspectorate. While Malta benefits from a clear legal framework and structured enforcement mechanisms, concerns remain regarding sanction effectiveness and overall compliance capacity.