Statutory Extras, COLA & Tax Refund Cheques
By law in Malta, employees are entitled to statutory bonuses and weekly allowances paid quarterly, alongside annual Cost of Living Adjustments (COLA) and government tax refund cheques.
Statutory quarterly bonus schedule (€512.52 / year)
Tax treatment: statutory quarterly bonuses are subject to FSS income tax withholding, but are statutorily exempt from Class 1 Social Security Contributions.
Government tax refund cheques
The Government of Malta issues annual tax refund cheques to working individuals earning below specific income thresholds (e.g. up to €60,000/yr). Cheque amounts typically range from €60 to €140 based on income brackets.
Note: these cheques are direct government grants distributed by cheque or bank transfer, and do NOT alter payroll net calculations.
Cost of Living Adjustment (COLA)
COLA is a statutory mandatory wage increase announced in each Malta National Budget. It is added directly to employee basic weekly wages across all pay scales to offset inflation.