Labour cost figures must include all factors contributing to non-wage expenses

17th April 2018

Chamber argues that non-wage costs must include mandatory statutory bonuses paid by the employers and the contributions to the maternity leave trust fund alongside national insurance and other costs that do not render productivity.

In a statement issued on Tuesday, the Malta Chamber clarified that figures quoted recently, as non-wage expenses for employers in Malta were misleading.

"When calculating non-wage costs for employers in Malta, it is imperative to also include mandatory statutory bonuses paid by the employers and the contributions to the maternity leave trust fund alongside national insurance and other costs that do not render productivity. These contributions paid on the average private sector salary (according to the NSO Labour Force survey), result in a 12.5% non-wage cost." the Malta Chamber said.

The statement noted that Malta’s employers had to manage with the least productive hours in Europe, as Malta enjoyed the highest number of paid vacation days among all European Union countries.

"Malta has 39 paid vacation days when counting both vacation leave and public holidays, whereas the average across the European Union is 32.5 days. Workers in Malta, in fact enjoy 6.5 more paid vacation days than their average European counterparts"

The Malta Chamber stated that the real non-wage labour cost for employers in Malta is far higher than the figures quoted recently.

"While holding in the highest regard values of social responsibility, the Chamber notes that Maltese employers, unlike their European main-land colleagues have to contend with added costs of operating from an island, ie shipping in raw-materials and shipping-out their finished products as well as the third highest energy rates in Europe besides additional costs imposed by other market frictions that are unique to Malta" the Chamber added.

The Malta Chamber noted that no one owed Malta a living and investment would only be attracted towards the most favourable conditions possible.

"It is not for lack of social conscience that the Malta Chamber is compelled to make its arguments, but its conviction that only through competitiveness, can the country ensure the economic sustainability of jobs" the statement concluded.


24th April 2018

The tool-kit provides SMEs with a guide to help them expand their business into other European marke...

12th April 2018

Malta Chamber supports the launch of the first edition of the China International Import Expo that w...

13th April 2018

The Malta Chamber in collaboration with Jobsplus is offering members the opportunity to advertise th...

5th April 2018

Addressing the Annual General Meeting of the Malta Chamber, Director General Kevin J. Borg updated m...

Labour cost figures must include all factors contributing to non-wage expenses