Everything about the Maltese pension system for self-employed workers: DSS, Class Two NI contributions, two-thirds pension and voluntary savings.
The Maltese system is based on mandatory National Insurance (NI) contributions managed by the DSS, with a voluntary savings option.
The Department of Social Security administers the entire social security system in Malta, including retirement pensions. Self-employed workers contribute through Class Two NI contributions.
Voluntary personal pension schemes allow you to supplement the state pension.
25% tax credit on voluntary contributions, up to €750 credit per year on a maximum contribution of €3,000.
Self-employed workers in Malta pay mandatory Class Two contributions based on net income.
The rate is 15% of net income, with a minimum of €945.24/year and a maximum of €2,606.32/year (2024). Self-employed persons also pay an employer-equivalent 15%, making the effective total 30% capped.
The maximum pension equals two-thirds (2/3) of average pensionable income. A full pension requires 30 years of contributions. Below that, the pension is calculated pro-rata. The minimum pension is approximately €165/week (~€715/month) for married couples and ~€152/week for single persons.
Contribute at least €3,000/year to a voluntary personal pension scheme to obtain the maximum tax credit of €750/year.
Ensure you reach 30 years of NI contributions for a full pension. Any missing year reduces your pension pro-rata.
Your pension amount depends on your average pensionable income. Declare consistent income to maximise your two-thirds pension.
With a small labour market, diversification through Pillar 3 is even more important to secure your financial future.
Our financial analysis tools help you optimise your contributions and plan your self-employed retirement.
Discover our solutionsThe retirement age in Malta is 65 for persons born after 1962. A full pension requires 30 years of NI contributions.
A self-employed person pays 15% of net income in Class Two NI contributions, with a minimum of €945.24/year and a maximum of €2,606.32/year. An employer-equivalent 15% is also due.
The minimum pension is approximately €165/week (~€715/month) for married couples and approximately €152/week (~€659/month) for single persons.
Yes, voluntary personal pension schemes (Pillar 3) offer a 25% tax credit on contributions, up to €750 annual credit on a maximum contribution of €3,000.
The maximum pension is 2/3 of average pensionable income, subject to 30 years of contributions. Below that, the pension is reduced proportionally to the number of contribution years.
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