Maltese Social Security and the Yachting Industry

This updated guide explains the key benefits of Maltese social security for yacht crew, who needs to be registered, and how the latest contribution rates affect your responsibilities in 2025.

Why Social Security Matters for Yacht Crew

Social security protects your crew and reinforces your yacht's reputation as a responsible employer. It provides real-world benefits such as access to healthcare through the European Health Insurance Card (EHIC), and in certain cases, the S1 form for coverage in non-EU countries.

Contributions also build toward a state pension entitlement, offering long-term financial security. Additionally, the system covers maternity and paternity leave, unemployment benefits, and support in the event of injury or disability — ensuring your crew are protected both at sea and ashore.

Who Must Be Registered?

All formally employed crew on Maltese-flagged yachts must be registered for Maltese social security. This includes EU, EEA, and Swiss nationals, regardless of their permanent residence, as well as non-EU nationals who hold valid work permits and are employed for more than 26 consecutive weeks.

These rules apply even if the yacht operates largely outside of Maltese waters.

The Registration Process

The registration process is relatively straightforward. Employers are responsible for submitting the necessary forms, typically including identity documents and contracts, and for obtaining a PE (Payee) number for social security and an income tax number for payroll.

Once registered, employers must submit weekly social security contributions on behalf of both themselves and their employees, based on the latest official contribution rates.

2025 Contribution Rates

As of 2025, the Class 1 contribution caps have increased slightly:

· For employees born on or after 1 January 1962, if earning €544.29 per week or more, both the employer and employee each contribute €54.43 per week. The employer also pays an additional €1.63 per week to the Maternity Leave Fund.

· For employees born before 1 January 1962, if earning €451.92 per week or more, employer and employee each contribute €45.19 per week, with a further €1.36 employer contribution to the Maternity Leave Fund.

These caps are updated annually by the Maltese government and ensure a predictable structure for budgeting and compliance.

Why It Benefits Employers

Registering your crew properly isn’t just a matter of ticking a compliance box — it’s a smart business decision. A crew that feels protected and valued is more likely to be loyal, motivated, and professionally committed. The process itself is streamlined, and by staying on top of your obligations, you avoid the risk of penalties or reputational damage.

Moreover, demonstrating that your yacht operates to the highest employment standards can be a major advantage when recruiting and retaining top-tier crew.

Final Thoughts

Maltese social security is both a legal requirement and a strategic investment in the long-term success of your operation. By understanding how the system works, and applying it correctly, you ensure your crew is protected, your business is compliant, and your vessel runs with integrity.

Need Personalised Advice?

If you're a yacht captain, owner, or management company and would like a tailored consultation on how best to manage or mitigate your social security requirements, try our Tax Consultation Service at the link below: https://marineaccounts.com/tax-consultation

We’ll guide you through your responsibilities, optimise your setup, and help ensure full compliance with confidence.