Malta has registered an increase in its minimum wage but has been overtaken by Croatia and Lithuania, according to an analysis by an EU agency.

The report was carried out by the European Foundation for the Improvement of Living and Working Conditions, an EU agency that provides knowledge to assist in the development of better social, employment and work-related policies.

Malta's monthly minimum wage is currently €961 - the eighth lowest among EU countries that have a national minimum wage.

This represents an increase of 3.9 per cent from €925 in 2024.

Luxembourg has the highest minimum wage in the EU at €2,631. On the other hand, Bulgaria has the lowest minimum wage at €477.

Eastern European countries registered the biggest percentage increases, with Romania, Croatia and Bulgaria registering increases of 22.8 per cent, 15.5 per cent and 15.4 per cent respectively. 

It is worth noting that Malta also registered the fourth lowest inflation rate at 1.8 per cent.

Croatia, by contrast, registered the third highest inflation rate at 4.5 per cent, which meant its minimum wage increase was eaten up by inflation to a greater degree than Malta.

Energy price shocks were one of the biggest factors affecting inflation in the EU, whereas the Maltese government subsidises energy costs. 

The increases also do not account for state-provided benefits aimed at helping those on low incomes.

In Malta, this includes in-work benefits and an additional annual Cost of Living Adjustment (COLA) increase, which totalled up to €1,500.