Foreign workers are paid 20% less than Maltese

Foreign workers in Malta earn around 20 per cent less than Maltese nationals on average, according to new official statistics, underscoring the extent to which the country’s recent economic expansion has relied on lower-paid overseas labour.

Data drawn from the latest Labour Force Survey and tabled recently in parliament show that in 2024, non-Maltese employees – including both EU citizens and third-country nationals – earned an average annual gross salary of €18,278, compared with €22,260 for Maltese workers. The gap amounts to just under €4,000 a year.

Foreign nationals now make up more than one-third of Malta’s workforce, numbering about 120,000 people in 2024, while Maltese employees accounted for just under 200,000. The figures highlight the scale of Malta’s dependence on imported labour as the island’s economy continues to grow at a pace well above the EU average.

The disparity is particularly pronounced in construction, one of the main drivers of recent growth. The sector employed nearly 12,000 non-Maltese workers in 2024, around 2,000 more than Maltese nationals, with many of these workers coming from outside the EU and earning comparatively low wages.

Foreign labour is even more concentrated in the accommodation and food services industry, which includes hotels and restaurants. This sector employed approximately 36,500 non-Maltese workers in 2024, making it the single largest employer of foreign nationals. It is also among the lowest-paid sectors: non-Maltese workers earned an average of €15,871 a year, compared with €18,332 for Maltese employees.

The figures come amid growing public concern about overpopulation and pressure on infrastructure in Malta, one of the most densely populated countries in Europe.

Critics argue that the government’s reliance on foreign labour to sustain rapid economic growth has exacerbated strains on housing, transport, healthcare, education and utilities, while contributing to rising property prices.

The Government has defended the policy, saying imported labour is necessary to address skills shortages and maintain competitiveness. However, the latest data adds to a widening debate over the sustainability of Malta’s growth model and the long-term social and economic costs of an expanding low-wage workforce.