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Payroll Updates for 2024: What You Need to Know

As we usher in the new year, businesses need to stay informed about the latest updates in payroll, employment, and related regulations. In this comprehensive overview, we’ll delve into the significant changes for 2024, covering crucial aspects such as the Cost-of-Living Adjustment (COLA), Minimum Wage, Leave Entitlements, Income Tax Rates, and Social Security Contributions. COLA […]

Written By Christabel Spiteri

On January 29, 2024
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As we usher in the new year, businesses need to stay informed about the latest updates in payroll, employment, and related regulations. In this comprehensive overview, we’ll delve into the significant changes for 2024, covering crucial aspects such as the Cost-of-Living Adjustment (COLA), Minimum Wage, Leave Entitlements, Income Tax Rates, and Social Security Contributions.

COLA

2024 sees the Cost-of-Living Adjustment with an increase of €12.81 gross per week (€666.12 gross per annum) for full-time employees. This adjustment is prorated for reduced working hours, translating to €0.32 per hour for part-time employees based on a standard 40-hour week.

Source: LN 388 of 2023

Minimum Wage

Effective January 1, 2024, the national minimum weekly wage for full-time employees varies based on age:

  • 18 years of age and over: €213.54
  • 17 years of age: €206.76
  • Under 17 years of age: €203.92
  • Part-time employees’ minimum wage should be calculated pro-rata at the same hourly rate as comparable full-time employees.

Source: LN 287 of 2023

Vacation Leave Entitlement

In 2024, a full-time employee with a 40-hour workweek is entitled to 240 hours of paid vacation leave. This includes the basic 192 hours leave entitlement plus an additional 48 hours in lieu of public holidays falling on weekends, adding up to a total of 30 days of paid vacation leave. The entitlement is pro-rated for reduced working hours.

Source: S.L.452.87

Income Tax Rates for 2024

The following table outlines the structured tax rates applicable to chargeable income for the calendar year 2024:

Source: Tax Rates 2024

Social Security Contributions

The table below outlines the Social Security Contributions and Maternity Trust Fund Contributions applicable to Class One (Employed) Persons, effective from January 1, 2024:

Source: Class 1 Social Security Contributions

If you need any help or assistance with the above-mentioned, please do not hesitate to contact us on [email protected].

How can we help?  

 

For further information, please contact us on [email protected]. ACT can help you understand the changes to the income tax, accounting, corporate and VAT rules and how these can impact your business.   

 

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on +356 21378672 or send us an email on [email protected]. 

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Disclaimer: This article contains general information only and is not intended to address the circumstances of any particular individual or entity. ACT, by means of this article is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. This article is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Before making any decisions or before taking any action that may affect your finances or your business, you should consult a qualified professional adviser. ACT shall not be responsible for any loss whatsoever sustained by any person who relies on this article.