Malta Budget Raises Employment Costs for Non-EU Workers

Malta’s 2027 budget includes measures that will increase the cost of employing third-country nationals (TCNs), referring to workers from outside the European Union, with potential implications for the country’s iGaming sector.

Announced on 26 October by Finance Minister Clyde Caruana, the changes include higher work permit application fees and new contributions for non-EU workers living on the island.

The initial permit application fee for TCNs will increase from €600 to €800. Workers will also be required to pay an annual infrastructure contribution of €400, while those driving with a non-EU category B or B1 licence will face a monthly fee of €83.

In addition, workers who have lived in Malta for fewer than five years will no longer qualify for free public transport or childcare.

The government has said the measures are intended to increase revenue and reduce reliance on foreign labour. However, business groups and trade unions have raised concerns about the potential impact on recruitment costs and workers’ disposable income.

Implications for Malta’s iGaming Sector

The changes could affect the gambling industry, for which Malta is a major European hub. International operators including Betsson, Flutter and Entain maintain offices on the island, where the sector makes a substantial contribution to the economy.

The industry generates approximately €1.4bn in gross added value annually, equivalent to 6.3% of Malta’s economic output.

According to the Malta Gaming Authority’s 2025 annual report, 15,039 people work across 302 companies licensed by the regulator.

Higher employment costs could therefore affect operators that rely on international recruitment to staff their Maltese offices, potentially adding to the expenses associated with attracting and retaining non-EU workers.

Bill 55 Faces Further Legal Scrutiny

Alongside the budget measures, Malta’s gambling industry is awaiting a ruling on Article 56A of the Maltese Gaming Act, commonly known as Bill 55.

The provision is intended to protect Malta-licensed operators by limiting the circumstances in which Maltese courts recognise or enforce certain foreign judgments relating to gambling activities.

The legislation has faced scrutiny in disputes involving players who used Malta-licensed operators in other European markets, including Germany, before local regulatory frameworks were introduced.

Operators and other industry stakeholders have challenged aspects of the provision, particularly in cases involving claims for refunds from players.

The Court of Justice of the European Union (CJEU) is scheduled to deliver a judgment on Bill 55 on 19 November. The outcome could have implications for the legal protections available to operators licensed by the Malta Gaming Authority (MGA).

In cases involving Article 56A, the CJEU has previously ruled that the laws of the country where players resided when they incurred gambling losses can take precedence over Maltese legislation.

A ruling limiting the application of Bill 55 would therefore potentially reduce the protection the provision offers Malta-licensed operators against certain foreign judgments.

Regulatory and Employment Pressures

The budget changes and pending court ruling present separate challenges for Malta’s gambling industry.

Higher costs associated with non-EU employment could affect recruitment and staffing decisions, while the CJEU’s judgment could clarify the extent to which Malta’s legal framework protects operators facing claims arising from activity in other jurisdictions.

The implications will depend on the final implementation of the budget measures and the scope of the court’s ruling, both of which could influence the operating environment for gambling businesses based in Malta.