Malta's migration policy: a change of approach on the island

November 17, 2023

Malta has changed its approach to migration. Malta's Minister of Finance and Employment, Clyde Caruana, who was the head of JobsPlus, the agency responsible for employment on the island, has been announcing fundamental changes to Malta's migration policy since January 2021, as Boom Studies announced in due course. ¹

In this regard, he unveiled a new employment policy for the decade 2020- 2030 from October 2021, with the aim of alleviating the need for specific skills in the Maltese labor market.²

What Caruana has argued on several occasions is that Malta will go for higher skills in the labor market, to generate greater value and that the approach to growth based on intensive, unskilled labor is over for Malta.

This is a new government stance that has a much more general outlook and mentions that growth based on low value added activities is over and that it is time to change the economic model in Malta. The rational behind it is that unskilled migrants "accept low quality jobs because under current laws if they lose their job they have 10 days to leave the island. This is also reflected in poor health and safety conditions" as well as other exploitative situations that need to change.³

The aim of this measure is to reduce the pressure that migrants bring on public services, such as schools or health, while betting on a progressive increase in the minimum wage to improve the quality of life of residents in Malta. That is why this substantial change in the migration policy is sought, since today most of the 52,000 foreign workers in Malta earn the minimum wage, 20,000 earn less than €16K a year, 14,000 earn less than €16K a year and another 18,000 earn less than €21K a year. ⁴The average salary in Malta is €1,848 per month.⁵

Table of Contents

The island's current situation: need for foreign labor

On several occasions in recent months, the government has commented on the situation of foreign labor on the island.

"Foreign workers will come to the country based on whether they are needed or not" - Robert Abela, September 2023⁶

"PM wants "quality" foreign workers" (Oct 2023).⁷

"The government will not support companies that are solely focused on importing foreign workers" - Robert Abela, August 2023.⁸

First, it is clear that the country, one of the countries with one of the lowest unemployment rates in the Eurozone (2.7%), needs foreign labor as the local labor force is not able to supply the demand for workers. (EUROSTAT⁹)

Secondly, what the government has said is that foreign labor is not needed in all sectors, as there are some sectors that are saturated, as is the case of home food delivery drivers or app cab drivers, to cite some examples to which the Prime Minister of Malta himself, Robert Abela, has made reference in recent months.

"The Prime Minister indicated that foreign workers should only be imported into sectors that really need them - there is an excessive number of cab drivers."¹⁰

In September 2023, Abela mentioned: "foreign workers will be granted permits to work in Malta based on whether they are needed or not".¹¹clearly indicating that there will be a sectoral and case-by-case review of work permit applications for non-European nationals.

If you are considering migrating, this video is for you:

Malta as an ideal destination for Latinos: one of the European countries most open to non-European migration

Despite recent changes, Malta continues to maintain an open stance towards foreign labor, which is difficult to find in these latitudes of the old continent. In fact, after Luxembourg, Malta is the second EU country with the highest proportion of immigrants:¹²

However, to safeguard the integrity of workers, decrease abuses and be more focused on the needs of the national economy, the prime minister has indicated that outsourced recruitment agencies would be scrutinized more closely.

The message for non-European citizens who want to come to work in Malta through a work permit is to have a good level of English, which they can improve on the island, and, above all, to aim for higher education in order to have the qualifications the country needs.

For example, for the tourism sector, there is a bill that has been much debated recently which seeks to ensure that workers coming from abroad have the necessary skill levels required for the job. This clearly indicates that the country is still open to migration, however, it is going to regulate it by betting more and more on skilled workers, where English clearly plays a fundamental role.¹³

The new premise is "quality is more important than quantity", as Pierre Fenech said,

35% of the resident population in Malta is foreign and this proportion is estimated to continue to grow in the coming years. In fact there are several initiatives and residence opportunities for foreigners in Malta and to attest to this, the government has created the Maltese Residency Malta Agency.¹⁴. Some of the active programs are the following: "Malta Residence and Visa Programme" for investors on the island; Nomad Visa, for those who can work remotely and prove an income of at least €2,700 per month; Start-Up Visa, which only asks for an investment of €25,000 and gives residences for leaders of innovative start-ups, with which it is clear that the government does not intend to curb migratory flows to the island, but to draw some guidelines for certain profiles, which is intended to have a positive impact on the quality of life and income level of foreign workers in Malta.

Migration to Malta is welcome, but not in any way.

At this time, having a migration project to Malta is possible, but given the current circumstances, we must plan it in the best way possible.

Having a higher education program on the island will ensure immigration stability through stronger immigration permits.The student residency program, such as a student residency, allows you to apply for part-time work through a jobsplus license, which is not subject to the labor market study.¹⁵

In this way an income can be generated at the same time as the student gets to know the working environment in Malta, generating local connections and finding a better position in the labor market.

Those students with an in-demand skill set will have a much less difficult integration, better remuneration and can also benefit from government schemes, such as the Get Gualified Scheme.¹⁶ or the Tax Credit on Higher Educational Qualifications¹⁷The program, which was launched to encourage the population to train and thus facilitate the creation of skills within the Maltese labor market.

It is important to have a partner in Malta, such as Boom Studies, that works hand in hand with the authorities and has knowledge of the updates in migration policy, regulations and the entire ecosystem.

It is precisely for this reason that the Maltese National Skill Council exists and has been strengthened, which mentions the following:

"The Council's primary objective is to use evidence-based practices to understand and anticipate current and future skills within the labour work forcewhilst instigating policy changes to this effect. Malta is already facing skill gaps and mismatches, often addressed in the short-term through the importation of foreign workers. This imbalance will exacerbate further due to the ever–changing labour market. Labour market transformations present uncertainty, risks and opportunities locally and worldwide. Investing in human capital development is therefore essential to ensure resilience and competitiveness.

This decade is expected to bring about even bigger changes that will have a lasting effect on the world of work. The key drivers include the fast-technological advancement, the demographics in our country and beyond, and undoubtely climate change. The European Union recognised these common challenges, and established 2023 as the official European Year of Skills. The National Skills Council has an instrumental role in ensuring that Malta is better-prepared to face new labour market realities with capabilities to contribute to economic and social development".¹⁸

Let's go

[1] BOOM MALTA https://www.facebook.com/BoomMalta/posts/466900694681284/

[2] MALTA TODAY: https://www.maltatoday.com.mt/news/national/112480/employment_policy_seeks_betterskilled_workforce_but_warns_foreign_labour_still_needed

[3] https://timesofmalta.com/articles/view/opinion-change-economic-model.1043615

[4] https://theshiftnews.com/2023/10/18/third-country-nationals-are-struggling/

[5] https://newsbook.com.mt/en/average-monthly-basic-salary-in-malta-at-e1848/

[6] https://www.independent.com.mt/articles/2023-09-10/local-news/Foreign-workers-will-come-to-the-country-depending-on-where-they-are-needed-Abela-6736254745

[7] https://newsbook.com.mt/en/pm-wants-quality-foreign-workers-who-serve-the-maltese-first-and-foremost/

[8] https://timesofmalta.com/articles/view/government-back-businesses-focused-solely-importing-workers-pm.1052296

[9] https://ec.europa.eu/eurostat

[10] https://www.maltatoday.com.mt/news/national/124422/do_not_submit_nonstarter_applications_that_go_against_regulations_abela_tells_developers

[11] https://www.independent.com.mt/articles/2023-09-10/local-news/Foreign-workers-will-come-to-the-country-depending-on-where-they-are-needed-Abela-6736254745