Foreign workers in Malta earn 20% less than nationals

Foreign workers in Malta earn on average around 20% less than Maltese nationals according to newly published official statistics. The data sheds light on the wage structure underpinning Malta’s recent economic expansion and highlights the extent to which growth has been supported by a large and comparatively lower paid overseas workforce.

Figures drawn from the most recent Labour Force Survey and tabled in parliament indicate that in 2024 non Maltese employees earned an average annual gross salary of €18,278. By contrast Maltese nationals earned an average of €22,260 during the same period. The difference represents a wage gap of just under €4,000 per year and illustrates a persistent disparity across large parts of the labour market.

The data includes both European Union citizens and third country nationals working in Malta. It offers one of the clearest official snapshots to date of how wages are distributed between local and foreign workers at a time when the country’s labour force has expanded at an unprecedented pace.

Rapid workforce growth driven by overseas labour

Foreign nationals now account for more than one third of Malta’s total workforce. In 2024 approximately 120,000 non Maltese workers were employed across the economy while Maltese employees numbered just under 200,000. This shift marks a structural transformation in the labour market compared with a decade ago when foreign workers represented a much smaller share of total employment.

Malta’s economy has grown consistently faster than the European Union average in recent years. This expansion has been fuelled by strong performance in sectors such as construction tourism hospitality gaming professional services and logistics. However domestic labour supply has not kept pace with demand. As a result employers have increasingly relied on foreign workers to fill vacancies at all skill levels.

While many foreign professionals occupy well paid roles in finance technology and specialised services the bulk of overseas labour is concentrated in lower paid sectors. This concentration plays a significant role in explaining the overall wage gap highlighted in the official figures.

Wage differences across sectors and occupations

The salary disparity between Maltese and non Maltese workers varies significantly by sector. In industries characterised by manual work seasonal demand or irregular hours the difference tends to be more pronounced. Construction provides a clear example.

In 2024 the construction sector employed nearly 12,000 non Maltese workers. This figure exceeded the number of Maltese nationals employed in the sector by around 2,000. Many of these workers originated from outside the European Union and were engaged in roles involving physical labour often under subcontracting arrangements.

Average wages in construction remain relatively low compared with other sectors particularly for foreign workers. While precise breakdowns by occupation are not always publicly available the overall trend indicates that non Maltese employees in construction earn considerably less than their Maltese counterparts on average.

Accommodation and food services reliance on foreign workers

The accommodation and food services sector stands out as the largest employer of foreign nationals in Malta. In 2024 approximately 36,500 non Maltese workers were employed in hotels restaurants catering and related services. This sector alone accounts for a substantial share of all foreign employment on the island.

It is also among the lowest paid sectors in the Maltese economy. According to the official data non Maltese workers in accommodation and food services earned an average annual salary of €15,871. Maltese employees in the same sector earned an average of €18,332. While the gap is smaller in absolute terms than in some other industries it remains significant given the already modest wage levels.

The reliance on foreign labour in hospitality is driven by a combination of factors. These include unsociable working hours seasonal fluctuations physically demanding roles and relatively low pay which make recruitment and retention of local workers more challenging. Employers have therefore turned increasingly to overseas workers to maintain operations especially during peak tourist seasons.

Broader implications for income levels and living standards

The wage gap between Maltese and non Maltese workers has broader implications for income distribution and living standards. For foreign workers lower wages are often accompanied by higher vulnerability to rising living costs particularly housing. Many foreign employees rely on shared accommodation and spend a significant proportion of their income on rent.

For Maltese workers the presence of a large lower paid labour pool has raised concerns about wage stagnation in certain sectors. Trade unions and employee representatives have argued that an abundant supply of overseas labour can reduce pressure on employers to raise wages particularly in industries where profit margins are tight.

At the same time employers contend that without access to foreign workers some sectors would struggle to function effectively. They argue that wage levels reflect productivity business conditions and international competitiveness rather than nationality alone.

Population growth and pressure on infrastructure

The sharp increase in foreign workers has contributed to rapid population growth. Malta is already one of the most densely populated countries in Europe and the arrival of tens of thousands of new residents over a relatively short period has intensified pressure on infrastructure and public services.

Public debate has increasingly focused on congestion housing shortages strain on healthcare education capacity transport networks and utilities. Critics argue that economic growth driven by population expansion rather than productivity gains carries long term social and environmental costs.

Rising property prices and rents have been a particular point of contention. Demand for housing has surged alongside workforce growth contributing to affordability challenges for both Maltese residents and foreign workers. This dynamic has further amplified concerns about inequality and quality of life.

Government position on labour migration

The Government has consistently defended its labour migration policy. Officials argue that imported labour is essential to address skills shortages sustain economic momentum and maintain Malta’s attractiveness as a place to do business. They point to low unemployment rates and high job creation as evidence of economic success.

According to the Government foreign workers complement rather than replace Maltese employees and contribute significantly to tax revenues social security payments and economic output. Authorities have also emphasised recent policy measures aimed at regulating recruitment improving worker protections and encouraging upskilling among the local workforce.

Nevertheless the wage data has added weight to calls for a reassessment of the current growth model. Some policymakers have acknowledged the need to shift towards higher value activities productivity improvements and better wage outcomes rather than continued reliance on large inflows of lower paid labour.

Sustainability of the current economic model

Economists and social commentators have increasingly questioned whether Malta’s current trajectory is sustainable over the long term. While headline growth figures remain strong the underlying reliance on imported labour raises questions about resilience social cohesion and wage development.

The presence of a substantial low wage workforce can place downward pressure on average earnings and increase demand for public services. It can also create segmentation within the labour market where certain roles are effectively reserved for foreign workers due to pay and conditions.

Addressing these challenges may require a combination of policy interventions. These could include investment in training and education incentives for automation and productivity gains stronger enforcement of labour standards and a gradual recalibration of migration policy to align with long term capacity.

Legal and regulatory considerations

From a legal perspective wage disparities based on nationality must be examined carefully. Maltese and European Union law prohibit discrimination in employment on grounds of nationality particularly for EU citizens. Differences in average pay do not in themselves constitute unlawful discrimination if they reflect occupational distribution experience qualifications or market factors.

However regulators continue to monitor compliance with minimum wage laws working time regulations health and safety standards and equal treatment provisions. Ensuring that foreign workers are not exploited or underpaid relative to applicable legal frameworks remains a key responsibility for enforcement authorities.

Maintaining a robust legal framework is also important for protecting Malta’s international reputation as an employer destination. Allegations of systemic underpayment or abuse could carry reputational and economic risks if left unaddressed.

Looking ahead

The latest Labour Force Survey figures provide a factual basis for an ongoing national conversation about wages labour migration and economic strategy. The data confirms that foreign workers earn significantly less on average than Maltese nationals and that they now constitute a substantial share of the workforce.

How Malta responds to these realities will shape its social and economic landscape in the years ahead. Balancing growth with quality of life fairness and sustainability remains a central challenge for policymakers employers and society as a whole.

As the debate continues the focus is likely to remain on finding ways to raise productivity improve wages across sectors and ensure that economic success translates into broadly shared prosperity without placing unsustainable strain on the country’s limited resources.

Conclusion

The latest official wage data provides a clear and measured insight into the structure of Malta’s labour market at a critical point in the country’s economic development. The fact that foreign workers earn on average around 20% less than Maltese nationals reflects not only differences in nationality but more fundamentally the concentration of overseas labour in lower paid sectors that have become central to recent growth. This reality underscores how Malta’s economic expansion has been closely linked to an abundant supply of imported labour rather than sustained improvements in productivity and wage levels.

While the contribution of foreign workers to Malta’s economy is substantial and legally recognised the figures also highlight emerging structural pressures. These include wage disparities rising living costs population density and growing strain on infrastructure and public services. Left unaddressed such imbalances risk entrenching a two tier labour market and limiting upward wage mobility across key industries.

From a policy perspective the challenge lies in maintaining economic competitiveness while gradually shifting towards a model that prioritises skills development productivity and higher value employment. Ensuring fair and lawful employment conditions for all workers remains essential not only to protect individuals but also to safeguard Malta’s long term social cohesion and economic stability. The wage gap revealed by the data should therefore be viewed as an indicator prompting informed debate careful regulation and strategic planning rather than a transient statistical outcome.

FAQs

Why do foreign workers in Malta earn less on average?
Foreign workers are more concentrated in lower paid sectors such as construction and hospitality which reduces the overall average wage.

How large is the wage gap between Maltese and foreign workers?
Official data shows a difference of just under €4,000 per year on average.

Which sectors employ the most foreign workers?
Accommodation and food services and construction employ the highest numbers of non Maltese workers.

Does the wage gap indicate illegal discrimination?
A difference in average wages does not automatically imply discrimination if it reflects sector roles experience or qualifications.

How many foreign workers are employed in Malta?
Around 120,000 non Maltese workers were employed in 2024 representing over one third of the workforce.

Why does Malta rely heavily on foreign labour?
Rapid economic growth and limited domestic labour supply have driven demand for overseas workers.

Are foreign workers protected by Maltese labour law?
Yes foreign workers are covered by minimum wage laws and employment regulations.

What impact does foreign labour have on housing?
Increased population has contributed to higher demand for housing and rising rents.

Is the Government planning changes to labour policy?
Authorities have indicated a focus on skills development regulation and productivity improvements.

What is the long term concern highlighted by the data?
The sustainability of growth based on a large low wage workforce and its social economic impact.