More than a third of non-EU residents who worked full time last year earned a wage that was below the minimum threshold for tax contributions, according to figures presented in parliament.
Of the 52,000 third-country nationals (TCNs) who worked full-time in Malta last year, over 19,000 did not earn enough to pay tax – equivalent to 37 per cent.
For single persons, tax is payable on a yearly income above €9,100 and for married persons above €12,700.
Around 14,000 TCNs fell into the lowest tax bracket, contributing 15 per cent of their salary.
Nearly 18,000 paid a tax rate of 25 per cent, while only around 750, or one per cent, fell into the highest tax bracket, contributing 35 per cent of their earnings.
The figures emerged in parliament last week, when Nationalist MP Ivan Castillo asked Finance Minister Clyde Caruana how many non-EU full-time workers there were in Malta last year and how many fell into each tax bracket.
The over 33,000 paying either no tax or the minimum rate of 15 per cent represented the majority of TCN full-time workers, equivalent to almost two-thirds, or 63 per cent.
By contrast, only one per cent of non-EU workers were in the highest tax bracket.
Last year, the majority of the total workforce in Malta was employed full-time, according to data from the National Statistics Office (NSO).
That year, Malta enjoyed high employment rates, with 84 per cent of men and 72 per cent of women employed.
As the population continues to grow – it stood at 540,000 last year – there is a growing consensus that Malta needs to move away from an economic model that relies a lot on the importation of low-cost labour.
Finance Minister Clyde Caruana said on Tuesday that the country could not continue importing workers at the current rate without causing social upheaval.
Meanwhile, Prime Minister Robert Abela said late on Wednesday that social partners have struck a deal to increase the minimum wage incrementally every year for four years. He did not, however, provide any specific details about the deal reached.