Question 1

How is a bonus taxed in Malta?

Accepted Answer

Malta has no separate bonus tax. Under the FSS (Final Settlement System), a bonus is added to your annual income and taxed at your marginal rate — the rate of the tax bracket your total income falls into. For example, if you earn €30,000 and receive a €2,000 bonus, the bonus is taxed at 25%, leaving you €1,500 net.

Question 2

Is the 13th month salary taxable in Malta?

Accepted Answer

Yes. A 13th month salary or Christmas bonus paid by your employer is treated as normal employment income and taxed at your marginal rate under FSS. Note this is different from the statutory government bonus (COLA bonus), which is paid in fixed quarterly amounts.

Question 3

Do I pay social security (SSC) on my bonus in Malta?

Accepted Answer

No. Class 1 social security contributions in Malta are calculated on your basic weekly wage only — bonuses, overtime and allowances are excluded from the SSC calculation. Only income tax applies to your bonus.

Question 4

Can a bonus push me into a higher tax bracket in Malta?

Accepted Answer

Partially, yes. If your salary plus bonus crosses a bracket threshold, only the portion above the threshold is taxed at the higher rate — your existing salary is not re-taxed. This calculator flags when that happens and shows the exact extra tax.

Question 5

How much of a €1,000 bonus do I keep in Malta?

Accepted Answer

It depends on your income level in 2026: if your total income stays within the tax-free band you keep all €1,000; at the 15% bracket you keep €850; at 25% you keep €750; and at 35% you keep €650. Use the calculator with your actual salary for the precise figure.

Bonus Tax Calculator

Malta 13th Month Salary (Bonus) Explained