Skills strategy proposes training leave laws and incentives to push employers to upskill workforce

Malta’s newly launched National Skills Strategy for 2026–2035 places a strong emphasis on employers as key drivers of workforce development, proposing a series of incentives and potential legislative measures aimed at increasing training within organisations.

Among the eight priority areas outlined in the strategy, the sixth – focused on incentivising employers – signals a shift towards embedding learning directly into the workplace, particularly as Malta grapples with persistent skills gaps and a tight labour market.

The strategy notes that while Malta enjoys strong employment levels, many employers – especially SMEs – face constraints such as limited time, resources and concerns over employee turnover, resulting in below-average training provision when compared to the EU.

Training during working hours and paid leave under consideration

A key proposal is the introduction of legislation that could formalise training within the workday. Authorities are set to assess the feasibility of requiring training during working hours, alongside the potential introduction of training leave schemes supported by wage replacement mechanisms.

Such measures aim to reduce the burden on employers while encouraging structured upskilling across the workforce, particularly in areas such as digital, green and transversal skills.

The strategy also proposes exploring “payback clauses”, which would allow employers to recover training investments under certain conditions, addressing concerns around employee retention after upskilling.

Focus on SMEs and practical workplace tools

Beyond legislation, the strategy highlights the need to equip businesses with practical tools to support in-house training.

This includes the development of accessible self-assessment instruments to help firms – particularly smaller enterprises – identify skills gaps and training needs. Employers would also be encouraged to adopt low-cost learning approaches such as job rotation, mentoring and informal training, supported by awareness campaigns and incentives.

The emphasis reflects a broader push to make training more embedded and continuous, rather than reliant on formal external programmes.

Matching businesses with trainers

To address capacity constraints, the strategy also proposes a system to match enterprises with available trainers, ensuring that businesses lacking internal expertise can still access high-quality training.

This initiative would particularly target SMEs and could involve collaboration with local stakeholders such as the Chamber of SMEs, as well as partnerships with foreign training providers to expand access to specialised expertise.

A shift towards employer-led skills development

The proposals underline a broader policy direction: shifting part of the responsibility for skills development from institutions to employers themselves.

By embedding training within organisations, policymakers aim to close skills gaps more efficiently, improve productivity, and ensure that the workforce remains adaptable in the face of digital transformation and the transition to a net-zero economy.

The strategy – currently open for public consultation – forms part of a wider national effort to align Malta’s skills system with future economic needs, with implementation expected to roll out gradually through to 2035.