Auto-enrolment occupational pension regime: What will this mean for employers?

Recent launch of public consultation on the proposed introduction of an auto-enrolment occupational pension regime in Malta

Last week, on 18^th June 2025, the Government of Malta, via the Ministry for Finance (MFIN), launched a one-month public consultation on the proposed introduction of an auto-enrolment occupational pension regime in Malta. Along with the consultation document published by the Government, the Malta Financial Services Authority (MFSA) has also issued its own consultation document, with the aim of further explaining the amendments proposed to the two main legislative Acts – the Retirement Pensions Act and the Insurance Business Act.

This consultation follows the Government’s announcement of the Malta Budget for 2025 back in October 2024, where the Government announced its commitment to introduce a new set of rules which will require employers to have an occupational pension scheme in place and to auto-enrol their employees into this scheme.

The intention behind the proposed regime is to improve the adequacy of pensions via the promotion of occupational pension plans, whereby every employee entering the workforce will have to be offered a pension plan, which they will participate in, unless they opt out. The deadline for the application of this system to the private sector is being proposed as June 2026.

What will this mean for employers?

Based on the consultation document, employers can expect some of the following obligations which are found in the proposals:

• Employers will be required to identify an occupational pension scheme which qualifies, which they wish to use to offer pensions within their organisation.
• Employers will also need to ensure that the chosen pension scheme is in line with the auto-enrolment rules.
• Employers will then be obliged to enter into a contractual arrangement with the chosen pension scheme provider to regulate the obligations of the employer and the scheme provider.
• Employers will be required to identify which employees are considered ‘eligible employees’ under the rules, and to automatically enrol all eligible employees working within their organisation into the chosen occupational pension scheme.
• Employees will however have the right to opt-out of the scheme, and if an employee does opt-out, employers will then be obliged to offer employees the opportunity to re-enrol into the scheme on an annual basis.
• Pension contributions may be made solely by the employee, or jointly by the employee and the employer.
• A minimum monthly pension contribution by the employee is set at €50, which contribution shall be deducted directly from the employee’s salary following their written consent.
• Employer contributions will remain voluntary. The Government has, however, announced its commitment to match employee contributions for public sector employees, up to a maximum of €100 per month.

Next steps

The public consultation period is now open, and will run up to 17th July 2025. During this period, interested parties should look into providing comments, suggestions, and requests for clarifications. Once the consultation period closes, the Government and the MFSA will issue a Feedback Statement to address the suggestions received via the public consultation, and to outline any proposed changes to the framework. As the Ganado Pensions Team, which has been active in this space since 2010, we shall shortly be launching webinars and information sessions on this topic, so as to ensure that employers are well prepared for the auto enrolment changes to come.