Malta : wage formation

Abstract

Whereas the minimum wage in Malta is set by law, wages are often regulated by collective agreements at enterprise level. All wages are topped up by a mandatory annual wage increase based on the inflation rate. Workers in the IT sector are among the most highly paid categories of workers. Industrial disputes in Malta normally revolve around wage issues. The General Workers’ Union has organised several campaigns against illegal and unethical wage practices. Unions are concerned that inflation is rising higher than the annual cost of living increase, thus diminishing the purchasing power of workers.