Overtime pay in Malta: rates, limits and how to claim
In Maltese employment law, overtime means any hours of work in excess of the normal hours of work (article 2 of the Employment and Industrial Relations Act, Cap. 452). For most whole-time employees the normal week is forty hours. How overtime is paid depends first on the sectoral regulation order (formerly called wage regulation order) for your sector, then on any collective agreement, and finally on the general rule in the Overtime Regulations (S.L. 452.110): one and a half times the normal rate for work beyond a forty-hour week.
Overtime is also limited. Average weekly working time, overtime included, may not exceed forty-eight hours over the reference period (regulation 7 of the Organisation of Working Time Regulations, S.L. 452.87), unless you have agreed in writing to work more. Employers may run a banking of hours scheme, but only with the authorisation of the Director responsible for employment relations and under strict conditions.
This guide explains how to check what you are owed, how banked hours work, and how to recover unpaid overtime through the Department for Industrial and Employment Relations (DIER) or the courts.
Key facts
Deadline
A civil action for wages of persons paid by the month is barred after one year (article 2147(c) of the Civil Code, Cap. 16); a prosecution of the employer under Cap. 452 must start within two years of the offence (article 47(1)), and non-payment of wages is treated as a continuing offence (article 47(2)); banked hours not redeemed by the end of the calendar year must be paid at overtime rates unless up to 160 hours are carried over by written agreement (regulation 5(5)(g) of S.L. 452.110); on termination, outstanding banked hours are due at overtime rates by the next pay day (regulation 5(5)(e)).
What to do
Find the rule that sets your overtime rate. Start with the sectoral regulation order for your sector, such as hotels and catering, retail or security; these orders, issued under Cap. 452, fix normal hours and overtime and Sunday rates for their sector. If your sector has one, its rate prevails. If there is no sectoral order, check whether a collective agreement covers your workplace.
Only where neither exists does the general rule apply: regulation 4 of the Overtime Regulations (S.L. 452.110) entitles you to one and a half times the normal rate for work in excess of a forty-hour week, averaged over a four-week period or over the shift cycle, at the employer's discretion. Your contract may give you more, but it cannot give you less than these minimums.
Calculate your normal hourly rate and your overtime hours. Divide your basic weekly wage by your normal weekly hours, usually forty, to obtain the normal hourly rate. Then count the hours you worked beyond the normal hours, applying the averaging period that applies to you: under regulation 4 of S.L. 452.110 the forty hours may be averaged over four weeks or the shift cycle, so a long week followed by a short one may produce no overtime at all.
Keep your own record of start and finish times, breaks and days worked, with rosters, messages and clocking data if available. Compare it with your payslips. Differences between hours worked and hours paid are the core of any claim, and a contemporaneous diary carries weight with DIER and the courts.
Check the forty-eight-hour limit and whether you signed an opt-out. The average working time for each seven-day period, including overtime, may not exceed forty-eight hours, calculated over the reference period set in regulation 7 of S.L. 452.87. The employer must ensure the limit is respected (regulation 7(5)). Whole-time employees must work overtime when required, but only within this average (regulation 3(1) of S.L. 452.110).
The limit does not apply if you have consented in writing to work more than forty-eight hours on average (regulation 3(2)). Check whether your contract or a separate form contains such consent. Even with an opt-out, the extra hours remain overtime and must be paid at the applicable overtime rate; the opt-out removes the cap, not the pay.
Understand banking of hours if your employer uses it. Under regulation 5 of S.L. 452.110 an employer may bank up to 376 of the normal annual working hours, so that you work longer weeks in busy periods and shorter ones later, without overtime pay for the banked hours. The scheme must be authorised by the Director (regulation 5(5)(h)), you must receive written notice of hours and roster four weeks ahead, and changes need forty-eight hours' written notice (regulation 5(5)(a)–(b)).
Your basic weekly wage must stay constant throughout the year (regulation 5(5)(c)). Hours worked beyond the scheduled hours on a given day are paid as overtime (regulation 5(5)(f)). Part-timers and whole-time employees with reduced hours cannot be forced to join and may not suffer detriment for refusing (regulation 5(5)(d)). Ask to see the Director's authorisation.
Claim unredeemed banked hours at year end or on leaving. If at the end of the calendar year you still have banked hours that were not given back as time off, the employer must pay them at the applicable overtime rate, unless you and the employer agreed in writing to carry up to 160 banked hours into the next year (regulation 5(5)(g) of S.L. 452.110). Carried-over hours must be used first and cannot be carried over again.
If your employment ends for any reason before the banked hours are redeemed, the outstanding hours must be paid at the overtime rate in force on the date of termination, by the next pay day (regulation 5(5)(e)(i)). If you worked fewer hours than the yearly average, the employer cannot claim a refund (regulation 5(5)(e)(ii)).
Ask your employer in writing for the missing overtime. Write a short letter or e-mail listing the weeks concerned, the hours worked, the hours paid, the applicable rate and the amount due. Cite the sectoral regulation order, your collective agreement or regulation 4 of S.L. 452.110, as the case may be. Ask for payment by a specific date, for example within fourteen days, or for a written explanation of how overtime was calculated.
Many disputes end here, because payroll errors are common, especially with averaging periods and shift work. Keep a copy of the request and any reply. If you are still employed and fear retaliation, keep the tone factual; DIER can take up the complaint in its own name, which reduces the personal exposure.
File a complaint with DIER. The Department for Industrial and Employment Relations, headed by the Director responsible for employment relations, enforces Cap. 452 and its regulations. You can file a complaint about unpaid wages and overtime; inspectors may examine the employer's records and question the employer. An employer who fails to comply with a sectoral regulation order, a collective agreement or the regulations is liable to a fine of €2,000 to €5,000 on conviction, with higher fines for repeat offences (article 45(1) of Cap. 452).
In criminal proceedings brought by DIER, the Court of Magistrates may also order the employer to pay you what is due. Proceedings must start within two years of the offence (article 47(1)), but non-payment of wages is a continuing offence (article 47(2)), so older arrears may still be covered.
Sue for the amount yourself if needed. Overtime is part of your wages, and you can recover it through civil action. For claims up to €5,000 the Small Claims Tribunal (Cap. 380) offers a simple and inexpensive procedure; above that, the Court of Magistrates or the Civil Court has jurisdiction according to the amount. A judicial letter under article 166A of the Code of Organization and Civil Procedure (Cap. 12) can also be used for liquidated sums.
Act within one year: actions for wages of persons paid by the month are barred by the lapse of one year (article 2147(c) of the Civil Code). Filing a judicial act interrupts the prescription. If you were dismissed for asking for your overtime, a separate complaint to the Industrial Tribunal for unfair dismissal is subject to a four-month limit.
What to watch out for
- Applying the general one-and-a-half rule when a sectoral regulation order sets a different rate. Check your sector's order first; it prevails over regulation 4 of S.L. 452.110.
- Counting overtime week by week when an averaging period applies. Under regulation 4 of S.L. 452.110 the forty hours may be averaged over four weeks or the shift cycle, so isolated long weeks do not automatically generate overtime.
- Signing an opt-out without reading it. Written consent under regulation 3(2) removes the forty-eight-hour average cap; you can still be paid overtime, but your hours may become very long.
- Accepting a banking of hours scheme without the Director's authorisation. Regulation 5(5)(h) of S.L. 452.110 requires it; without authorisation, extra hours are ordinary overtime.
- Letting a year pass. Civil claims for wages of persons paid by the month prescribe after one year (article 2147(c) of the Civil Code); DIER prosecutions after two years (article 47(1) of Cap. 452).
- Keeping no record of hours. Without rosters, clocking data or a diary, it is your word against the employer's payroll; start recording now.
- Forgetting banked hours when leaving the job. Unredeemed hours must be paid at overtime rates by the next pay day after termination (regulation 5(5)(e)(i)).
Legal basis
Frequently asked questions
What is the overtime rate in Malta?
It depends on your sector. A sectoral regulation order or collective agreement may set its own rate. Where neither applies, regulation 4 of the Overtime Regulations (S.L. 452.110) gives one and a half times the normal rate for work beyond a forty-hour week, averaged over four weeks or the shift cycle. Your contract may offer more, never less.
Can my employer force me to work overtime in Malta?
A whole-time employee must work overtime when required, provided that average weekly working time, including overtime, does not exceed forty-eight hours over the reference period (regulation 3(1) of S.L. 452.110 and regulation 7 of S.L. 452.87). Above that average you can only be asked to work if you consented in writing (regulation 3(2)).
Is the 48-hour week a legal limit in Malta?
Yes, as an average. Regulation 7(1) of the Organisation of Working Time Regulations (S.L. 452.87) limits average working time, including overtime, to forty-eight hours per seven-day period, calculated over a reference period. The employer must ensure compliance (regulation 7(5)). An individual employee may agree in writing to work more (regulation 3(2) of S.L. 452.110).
What is banking of hours and is it legal?
It is a scheme where up to 376 normal annual hours are worked in busy periods and given back as time off later, without overtime pay for those hours (regulation 5 of S.L. 452.110). It is legal only if authorised by the Director, with four weeks' written notice of rosters and a constant basic weekly wage throughout the year.
What happens to my banked hours if I resign?
Outstanding banked hours must be paid at the overtime rate in force on the date of termination, by the next pay day (regulation 5(5)(e)(i) of S.L. 452.110). If you worked fewer hours than the yearly average, the employer cannot claim the difference back from you (regulation 5(5)(e)(ii)).
Do part-timers get overtime in Malta?
Overtime means hours in excess of the normal hours of work (article 2 of Cap. 452). Part-timers cannot be forced into a banking of hours scheme (regulation 5(5)(d) of S.L. 452.110). If they join one, banked hours are paid at overtime rates on termination only where their averaged hours exceed those of a comparable whole-time employee (regulation 5(5)(e)(i)).
Where do I complain about unpaid overtime in Malta?
To the Department for Industrial and Employment Relations (DIER). Inspectors can examine the employer's records, and the employer may be prosecuted and fined €2,000 to €5,000 (article 45(1) of Cap. 452). The prosecution must start within two years (article 47(1)), but unpaid wages are a continuing offence (article 47(2)).
How long do I have to claim unpaid overtime?
A civil action for the wages of persons paid by the month is barred after one year (article 2147(c) of the Civil Code). Filing a judicial letter or a claim interrupts prescription. Criminal proceedings by DIER must begin within two years of the offence (article 47(1) of Cap. 452).
Can I take my employer to the Small Claims Tribunal for overtime?
Yes, if the amount does not exceed €5,000 (article 3 of the Small Claims Tribunal Act, Cap. 380). The procedure is simple and you do not need a lawyer. For larger amounts the Court of Magistrates or the Civil Court is competent. Bring payslips, rosters and your own record of hours.
Is overtime paid for public holidays and Sundays?
Special rates for Sundays and public holidays are set by the sectoral regulation order or collective agreement for your sector. Under the banking of hours rules, hours worked on a day carrying a special rate are excluded from banking and paid in the normal way (regulation 5(4) of S.L. 452.110).
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