Malta’s minimum wage growth slower than EU peers, now eighth lowest in EU

Although Malta continues to increase its minimum wage, the pace of growth has not been enough to maintain its ranking in the EU, as several other countries have implemented more aggressive wage hikes.

Malta now ranks eighth lowest among EU states with a national minimum wage.

At the top of the scale, Luxembourg maintains the highest minimum wage at €2,638, while Bulgaria has the lowest at €477.

Malta’s minimum wage has risen by 3.9 per cent in 2025, moving from €925 to €961 per month.

However, an analysis by the European Foundation for the Improvement of Living and Working Conditions (Eurofound) indicates that Malta’s position in the EU wage rankings has slipped.

Previously surpassed by Poland in 2024, Malta has now been overtaken by Lithuania and Croatia as well. According to Eurofound, Croatia experienced a significant 15.5 per cent boost in its minimum wage, climbing from €840 in 2024 to €970 in 2025, surpassing Malta. Lithuania’s increase was also substantial, as its minimum wage grew from €924 to €1,038. Meanwhile, Poland’s wage increase of 11.7 per cent, from €978 to €1,091, further widened the divide.

Despite these developments, these figures do not reflect state benefits designed to assist lower-income earners.

In Malta, support measures include in-work benefits and an annual Cost of Living Adjustment (COLA) increase, which added up to €1,500 in 2025.

Eurofound’s findings show a wide disparity in wage growth across the EU. Romania recorded the steepest increase, with a 22.8 per cent rise, bringing its minimum wage from €663 to €814. Lithuania’s wage boost of 12.3 per cent was also among the largest, reaching €1,038.

Nations with higher baseline wages saw more moderate increases. Luxembourg remains at the top of the EU wage rankings, increasing its minimum wage by 2.6 per cent to €2,638. The Netherlands raised its rate by six per cent to €2,193, while Ireland’s minimum wage rose by 6.3 per cent to €2,282.

Malta’s wage position remains relatively low within the EU. The country is now comparable to Greece (€968) and Portugal (€1,015), while Cyprus has retained its minimum wage of €1,000. In contrast, Slovenia (€1,384) and Spain (€1,381) continue to maintain a considerable lead over Malta.

The overall trend in the EU reflects varying rates of wage growth. Some nations, including Poland and Croatia, have introduced significant wage increases, altering their standing within the rankings. Meanwhile, Germany, France, and Belgium opted for moderate increases ranging from 2 per cent to 4.4 per cent.

Inflation and energy subsidies

Inflation remains a crucial factor in wage adjustments across the EU. Countries such as Estonia and Czechia implemented wage hikes of eight per cent or more to counter rising costs. Malta’s 3.9 per cent increase aligns with its relatively low inflation rate of 1.8 per cent, which is one of the lowest in the EU, second only to Luxembourg.

One of the primary reasons behind Malta’s low inflation is government-subsidised energy costs, which have helped keep inflationary pressures in check. In contrast, Croatia registered one of the highest inflation rates in the EU at 4.5 per cent, diminishing the real impact of its minimum wage increase.