When it comes to pensions, the Regulation introduced the concept of the portability of rights. This means that if a person has worked for more than one year in two or more of any EU/EEA state or in Switzerland, then the Regulation requires each of these states to pay a rate of benefit proportional to the length of insurance periods in such states.

For example, if from a total of 40 years, a person spent 20 years working in Malta, 15 years in Italy and 5 years in the United Kingdom, then this person should get a pension of not less than 20/40 years of the theoretical amount from Malta, 15/40 from Italy and 5/20 from the UK. All these states will work out the full theoretical rate of pension as if the person worked the whole 40 years there.

Where an employee is resident in and pays Social Security in Malta, the employee will be entitled to a European Health Insurance Card (EHIC). If an employee resides in an EU Member State other than Malta, the employee may benefit in the same way via the issuance of an S1 form in their EU country of residence (upon presentation of the salary slips showing the contributions made). Those insured in Malta may also claim unemployment benefits in their country of residence, by making an online request.

The process of making social security contributions in Malta is a very simple one. A registration application must be made for each employee in order to obtain a social security number. With this number in place, monthly returns can then be submitted to the Social Security Department.

Contributions are calculated based on a percentage of the weekly salary, if the latter does not exceed the threshold of €438.54. Once the weekly salary goes over this threshold, a fixed sum of contributions is payable.

Given the typical salaries earned by crew members exceeding this threshold, contributions are likely to be capped at €46.53 both for the employer and employee, resulting in a total contribution of €93.06.

In addition, a small contribution of €1.37 per week is also mandatory for contributions to Malta’s maternity fund.

  1. A European Health Insurance Card offered to those insured in Malta and an S1* form offered to those residing in a Member State other than Malta;
  2. Possibility of unemployment benefits in the Crew Member’s country of residence, via issuance of U1** form;
  3. Pension payable at a rate of benefit reflecting the number of contributions made by the employee and Malta’s pension scheme arrangements at the time of claim; and
  4. Protection from the repercussions of the French Decree 2017/307 by means of mandatory returns and payments on social security, amongst others

* Certificate of entitlement to healthcare if you don’t live in the country where you are insured.
** The U1 form certifies your periods of insurance and employment completed in an EU country, which will be taken into account for the award of unemployment benefits.


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