Revised Minimum Wage and Wage Increase for 2022
Revised Minimum Wage and Wage Increase for 2022
The two new National Standard Orders (hereinafter ‘NSO’) published by the Minister for Finance and Employment back in November 2021, entered into force on the 1st of January 2022: The National Minimum Wage National Standard Order 2021 (L.N. 462 of 2021) and the Wage Increase (Employees) National Standard Order, 2021 (L.N. 463 of 2021).
The National Minimum Wage NSO 2021 sets out the increased national minimum wage for all whole-time employees whose employment is governed by the laws of Malta, with the minimum wage increasing by €1.75 per week by virtue of the Wage Increase (Employees) NSO as follows:
- from €181.08 weekly to €182.83 weekly for employees aged 18 or over;
- from €174.30 weekly to €176.05 weekly for employees of 17 years of age; and
- from €171.46 weekly to €173.21 weekly for employees under the age of 17
Additionally, the National Minimum Wage NSO provides that in any case where the Wages Council Wage Regulation Order applies to an employee, the wages that are to be paid to the employee should not be less than those laid down by the Wages Council Wage Regulation Order applicable for 2021.
In these situations, the amount payable is to be adjusted for cost of living by any increases in wages which are generally declared to be applicable to all whole-time employees in terms of article 8 of the Employment and Industrial Relations Act, or by any wage increases for cost of living laid down by any NSO applicable in respect of 2022.
These two NSOs also provide for the hourly rate increase of part-time employees. The Wage Increase (Employees) NSO stipulates that the hourly rate of part-time employees should be increased by the exact same amount as the increase in the hourly rate of a comparable whole-time employee, which should be calculated after adding the weekly increase previously mentioned, that of €1.75 per week.
In cases where the hourly rate cannot be compared as there is no comparable category of whole-time employees at the workplace, the hourly rate should be compared to the hourly rate of a comparable whole-time employee in an applicable Wage Regulation Order.
In the absence of such a Wage Regulation Order, the hourly rate shall be determined by calculating one-fortieth (1/40) of the rate of increases stipulated in the Wage Increase (Employees) NSO, which again, is that of €1.75 per week.
On the other hand, the National Minimum Wage NSO provides that the national minimum wage of part-time employees should be calculated pro rata at the same hourly rate as a comparable whole-time employee, in accordance with the minimum wage of the relevant Wage Regulation Order.
In cases where a Wage Regulation Order is not applicable, the hourly rate of a part-time employee should be calculated to be above the national standard minimum wage for whole-time employees as set forth in this same NSO and should then be divided by forty.