[co-autor: Matthew Brincat]*
The Government of Malta recently launched a public consultation on the proposed introduction of an auto-enrolment occupational pension regime. We take a look at the details.
On 18 June 2025, the Government of Malta, via the Ministry for Finance, launched a public consultation on the proposed introduction of an auto-enrolment occupational pension regime in Malta. Along with the consultation document published by the Government, the Malta Financial Services Authority (MFSA) also issued its own consultation document, with the aim of further explaining the amendments proposed to the two main legislative Acts – the Retirement Pensions Act and the Insurance Business Act.
The public consultation concluded on 8 August 2025. In this article, we explore what the proposal could mean for employers.
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Aim of the proposal
The consultation follows the Government’s announcement of the Malta Budget for 2025 back in October 2024, where the Government set out its commitment to introduce a new set of rules which will require employers to have an occupational pension scheme in place and to auto-enrol their employees into this scheme.
The intention behind the proposed regime is to improve the adequacy of pensions via the promotion of occupational pension plans, whereby every employee entering the workforce will have to be offered a pension plan, which they will participate in, unless they opt out. The proposed deadline for the application of this system to the private sector is June 2026.
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Impact of the proposal
Based on the consultation document, employers can expect some of the following obligations:
- Employers will be required to identify a qualifying occupational pension scheme which they wish to use to offer pensions within their organisation.
- Employers will also need to ensure that the chosen pension scheme is in line with the auto-enrolment rules.
- Employers will then be obliged to enter into a contractual arrangement with the chosen pension scheme provider. This will regulate the obligations of the employer and the scheme provider.
- Employers will be required to identify which employees are considered ‘eligible employees’ under the rules, and to automatically enrol all such employees working within their organisation into the chosen occupational pension scheme.
- Employees will, however, have the right to opt-out of the scheme, and if an employee does opt-out, employers will then be obliged to offer employees the opportunity to re-enrol into the scheme on an annual basis.
- Pension contributions may be made solely by the employee, or jointly by the employee and the employer.
- A minimum monthly pension contribution by the employee is set at EUR 50. This contribution will be deducted directly from the employee’s salary following their written consent.
- Employer contributions will remain voluntary. The Government has, however, announced its commitment to match employee contributions for public sector employees, up to a maximum of EUR 100 per month.
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Takeaway for employers
If implemented, Malta’s proposed auto-enrolment occupational pension regime will bring significant changes for employers operating in the jurisdiction. The public consultation period is now closed, and we await a Feedback Statement from the Government and the MFSA to address the suggestions received, and to outline any proposed changes to the framework. It is important that employers pay close attention to the Feedback Statement and any additional communications. Staying informed and proactive will be essential as the final framework takes shape.
*Ganado Advocates
