Malta's minimum wage slips further behind EU peers as purchasing power gains shrink

Malta's minimum wage is losing ground against both average local earnings and the rest of the European Union, according to the latest annual review from Eurofound, the EU's living and working conditions agency.

Between 2016 and 2024, Malta was one of only six EU countries where the minimum wage fell when measured against average earnings. The ratio increased in 16 member states over the same period.

Belgium, Bulgaria, Hungary, Latvia and Lithuania joined Malta on the declining side of the ledger.

The gross national minimum wage rose from €221.78 to €229.44 a week in 2026, an increase of €7.66 or roughly 3.5%. That ranked 17th among the 22 EU countries with national minimum wages, well below the average increase of 6.7%.

At a monthly equivalent of approximately €994, Malta placed 15th. Workers in Greece earn €1,027 a month at the minimum. Portugal pays €1,073, Cyprus €1,088 and Spain €1,425.

Luxembourg tops the EU table at €2,704 a month. Bulgaria sits at the bottom with €620.

Five EU countries, Austria, Denmark, Finland, Italy and Sweden, do not operate a single national minimum wage, relying instead on collectively agreed wage floors.

Eurofound also placed Malta among countries with relatively small purchasing-power gains in its comparison covering January 2025 to January 2026. Minimum wages rose faster than consumer prices in every country with a national minimum wage except Romania.

The data does not suggest a widespread low-wage trap. Eurofound estimated that fewer than 5% of employees earned within 10% of the national minimum in 2023.

Most workers in Malta earn above the minimum. But a 2026 Central Bank discussion paper noted that available research indicates third-country nationals typically earn lower wages. The bank cautioned that annual tax records can understate wage levels when workers are employed for only part of the year.

For a small, open economy that relies heavily on foreign labour, the relative stagnation of the minimum wage raises questions about the country's ability to attract lower-skilled workers as other EU destinations offer higher statutory floors.