Maternity / Adoption Leave Trust Claim

Overview

The Maternity Leave Contribution that came into effect as of 1^st July 2015 through Legal Notice 257 of 2015 (Trusts and Trustees Act Cap. 331.), is to be paid by Employers for all their employees in the private sector.

This scheme is also applicable to a person who adopts a child.

The Public Service and Public Sector Entities; Authorities, Agencies and Public Corporations are exempt from this scheme.

The rate of the Maternity Leave Contribution is 0.3% of the basic weekly wage as published in Legal Notice 258 of 2015 (Trusts and Trustees Act Cap. 331.), which is an addition to the 10th Schedule of the Social Security Act (Cap. 318.). This contribution is paid entirely by the employer and should not be deducted from the employees’ wages.

What you’ll get

Under this scheme, employers will pay the maternity/adoption leave to their employees for the first fourteen (14) weeks and then apply for a Refund from the Department of Social Security when the employee returns to work.

Eligibility

General eligibility criteria:

The Maternity Leave Contribution is to be paid for all employees for whom the Class 1 Social Security Contributions are paid and for all employees (including Part-Timers) who are not eligible to pay Social Security Contributions but who are eligible for Maternity Leave according to the Employment and Industrial Relations Act (Cap. 452.).

The following employees are exempt from having the Maternity Leave Contribution paid in their respect by their employer:

Employees over sixty-five (65) years of age who are exempt from paying Social Security Contributions, but are still considered to be in an employment relationship.
Directors who are liable to pay Class 2 Social Security Contributions.
Employees on unpaid leave for whom no Social Security Contributions are being paid.
Public Sector employees.
Casual employees for whom no Social Security Contributions are being paid.
Expatriate employees for whom no Social Security Contributions are being paid in Malta.
All self-occupied persons who are not entitled to Maternity Leave. Self-occupied persons are not employees and therefore are automatically exempt from Matenity Leave Trust Contributions on their own behalf. That is, self-occupied persons are not entitled to Claim Maternity leave costs from the Maternity Leave Trust Fund.

The following employees are not exempt from having the Maternity Leave Contribution paid in their respect by their employer:

Part-Time employees who are not due to pay Social Security Contributions on such employment given that they are already paying from another full-time and/or part-time employment. Employers employing part-timers should contribute to the Maternity Leave Trust Fund on behalf of their part-time employees as well, even though they do not pay Social Security Contributions on the part-time job.
Persons with Disability who are registered as disabled with the Commission for the Rights of Persons with Disability (CRPD) and who are in employment.
Persons (mostly interns) engaged on definite six (6) monthly contracts.

Since Self-Occupied persons do not contribute to the Maternity Leave Trust Fund, they are not entitled to the Maternity Leave Trust Fund Claim. Therefore, these schemes apply only to Employed Persons, and refunds are made through the Trust Fund to employers, according to the applicable rates established for each scheme.

Other Scenarios

The Maternity Leave Contribution should still be paid according to the basic weekly wage for employees on half-pay.
It should also be paid for part-timers working on irregular hours, and this is to be calculated according to the basic weekly wage.

Other Matters

Obligation for employee to stay in same employment for six (6) months:

Presently, the Employment and Industrial Relations Act (Cap. 452.) contains a provision (Article 36 (20) that requires employees to return to work for a six (6) month period after benefitting from maternity leave, failing which the employer will be due to a reimbursement from the employee. This provision remains valid and the employee is obliged to adhere to such regulation.

Church Schools

Teachers working in Church Schools are not considered as public officers and therefore Maternity Leave Contribution should be paid in their respect.

Documentation required

General documentation:

Social Security Contributions receipts issued by the CFR, each covering the employee’s First, Second, and Third Trimesters of pregnancy.
Employee’s Pay Slips for wage/salary paid during Maternity Leave.
Employee’s copy of the FS3 of the previous calendar year.
JobsPlus List of the Company’s Employees.