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Benjamin Griscti

As it has been announced in the last budget with effective date 1 July 2015, every employer shall start paying a contribution for each employee to the maternity fund - a fund setup by the Government by which employers will then be entitled to get reimbursed in the case of any of their employees taking a 14-week paid maternity leave.  This contribution is mandatory for any employer irrespective of whether employees are male or female

The contribution shall be made similarly to the normal Social Security Contributions and as such must be paid together with tax and SSC payments upon the submission of the FS5.  For this purpose, the FS5 has been slightly revamped to accommodate this new contribution.  The rates of this new contribution shall be as follows: 

Type of employee

Weekly contribution payable by employer

Persons under 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €166.26.  

€0.20c

Persons over 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €166.26.  

€0.50c

Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €166.26 but does not exceed €343.11.  

0.3% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary 

Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €166.26 but does not exceed €418.25.  

0.3% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary 

Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €343.11.  

€1.03c  

Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €418.25.  

€1.25c

Persons under 18 years of age who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration.  

0.3% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of €0.13c 

Persons over 18 years of age who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration  

0.3% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of €0.20c 

As a concession for the month of July, this contribution may be paid by the end of September 2015. The payment of tax and social security contributions for July would still need to be settled by the end of August 2015.

If you would like further information on this matter, please do not hesitate to contact our tax manager, Benjamin Griscti on bgriscti@ksimalta.com