Maternity Leave Payments

By means of Legal Notice 258 of 2015, a Maternity Leave Fund has been launched as from 6th July 2015.  Prior to the introduction of the new rules, employers that employ women had to pay the wages of their pregnant employees during the fourteen week maternity leave.  By virtue of the new regulations, employers will be […]

Written By ACT Team

On August 21, 2015
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By means of Legal Notice 258 of 2015, a Maternity Leave Fund has been launched as from 6th July 2015. 

Prior to the introduction of the new rules, employers that employ women had to pay the wages of their pregnant employees during the fourteen week maternity leave.  By virtue of the new regulations, employers will be required to pay a monthly contribution to the Maternity Leave Fund irrespective of the gender of the employees.  The contributions paid will eventually be placed into a fund which will be used to reimburse employers paying employees on maternity leave.  The contributions will be paid by the employer together with the monthly social security contributions and tax deducted from the employees’ salaries, when submitting the monthly Form FS 5.

The weekly contribution rate to be paid by the employers towards the Maternity Leave Fund is as follows: 

(i)      €0.20c for persons paying Category A social security contributions (persons under 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €166.26);

(ii)    €0.50c for persons paying Category A social security contributions (persons over 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €166.26);

(iii)   0.3% of the basic weekly salary for persons paying Category C social security contributions (persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €166.26 but does not exceed €343.11 and persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €166.26 but does not exceed €418.25);

(iv)  €1.03c for persons paying Category D social security contributions (persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €343.11);

(v)    €1.25c for persons paying Category D social security contributions (persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €418.25);

(vi)  0.3% of the basic weekly salary for persons paying Category E social security contributions (up to a maximum weekly rate of contribution of €0.13c);

(vii) 0.3% of the basic weekly salary for persons paying Category F social security contributions (up to a maximum weekly rate of contribution of €0.24c).

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax 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 00356 21378672 or send us an email on [email protected].