The recently unveiled Labour Migration Policy will “stabilise” Malta’s population growth, Home Affairs Minister Byron Camilleri has pledged.

He said the aim behind the policy is for the population to grow at a slower rate and so not reach 800,000 by 2040 as one of his colleagues had predicted.

“We are being clear that we are taking a different direction to the population growth we saw in recent years. That growth was needed to serve the economy, but we now need to take different decisions because we understand the challenges there may be,” the Home Affairs and Employment minister said on Friday. 

In the last years, as the economy flourished, so did Malta’s population, with EU and third-country national fuelling numbers of around 550,000, up from around 425,000 in 2013.

Finance Minister Clyde Camilleri had famously warned in June 2023 that Malta’s population could balloon to 800,000 if the country did not devise a new economic model.

In an interview with Times of Malta on Friday, Camilleri was asked about the figure.

“Our aim is that there won’t be that sort of growth but a move towards stability,” he said.

“Any progress (of population growth) that there could be, will be stable, and will be different from what we saw in the last years,” he said.

Camilleri said the rate of Malta’s population growth was “much, much lower” in 2024 compared to 2023.  

Those results were down to government’s decision to limit the number of food couriers and cab drivers entering the labour market, and also new rules on temping agencies. 

Camilleri did not provide figures to back the claim, saying the official figures will soon be published.  

But the minister’s answers to a parliamentary question in November show that 8,256 TCNs were given a work permit in the first nine months of 2024 while 19,130 foreign workers received a work permit in 2023.

And with Malta having one of the lowest fertility rates in the world and an ageing population, it will continue needing foreign workers, Camilleri said.

The aim of the policy, the employment minister said, is to give authorities more control and ensure that foreign workers are brought to Malta only in the sectors that are needed- Home Affairs Minister Byron Camilleri

“If you look at the last 10 years, you have an average of 1,500 fewer Maltese who are becoming old enough to work compared to those who are leaving the workplace,” Camilleri said.  

The aim of the policy, the employment minister said, is to give authorities more control and ensure that foreign workers are brought to Malta only in the sectors that are needed.

Camilleri was speaking after the Malta Labour Migration Policy was unveiled for public consultation, which will remain open until February 9.

After that stage is complete, the government will begin implementing the policy in a staggered approach.

He noted that while the policy incentivises employers to favour Maltese and EU workers, it introduces measures that encourage non-EU workers who are already working in Malta to stay, upskill and integrate into Maltese communities.

Several measures are also aimed to fight against exploitation, Camilleri said.

Finance Minister Clyde Camilleri had famously warned in June 2023 that Malta’s population could balloon to 800,000 if the country did not devise a new economic model. Photo: Chris Sant Fournier

Annual turnover rates of 200 per cent

One way the government wants to crack down on abuse is to block companies from hiring foreign workers if a significant amount of their third-country-national workforce leave or are fired in the previous 12 months.

Small companies (employing between 10 and 49 people) will not be allowed to hire new workers if 50 per cent or more of their TCN workforce leave.

For medium-sized companies – employing between 51 and 249 people – that threshold is 40 per cent, and for large companies – employing 250 or more people – it is 35 per cent.

“Those figures are based on studies conducted by our economists that worked on this policy. Those numbers are not the average, they are the exception,” Camilleri said.

Camilleri acknowledged the “very high” turnover rates in some companies.

“One case comes to mind where a company changes the same number of workers twice in a single year... 200 per cent. That is not only excessive, but I also think it’s abusive.”

As it stands, the minister said, those treating their workers justly are competing with others abusing their workers.

“They are competing for the same clientele, but probably that person abusing his workers can offer lower prices. This measure will help create a level playing field because the person who does everything by the book should not be penalised. And I believe that in some instances they are being penalised right now”.

Those providing healthcare workers, and care services to the elderly and those with disabilities are exempt from the turnover measure.

But cannot care workers also be exploited?

Minister: 'One way the government wants to crack down on abuse is to block companies from hiring foreign workers if a significant amount of their third-country-national workforce leave or are fired in the previous 12 months.'

‘Need to reach a balance with what society needs’

“We need to reach a balance with what our society needs. Can you imagine a situation where this country does not have carers, or a person with a disability cannot find a personal assistant?” Camilleri replied.

“That doesn’t mean we won’t stand up to abuse in that sector,” he said.

Another measure aimed to prevent abuse is that all new TCN workers in Malta will have to be paid via bank transfer and not in cash.

“That will allow us to check that the wage is actually being paid and that tax and NI (national insurance) is also being paid,” Camilleri said.

Another measure will make it more expensive to bring in new employees while cheaper and easier to retain them. This will promote worker retention and stability.

Many of the measures will make it easier for authorities like Jobs Plus and Identità to enforce regulations

As it stands, a new work permit and a work permit renewal cost the same – €300. A TCN worker also needs to renew their work permit every year.

The government plans to double the cost of a first application to €600 and reduce the cost of a renewal to €150. Renewals will also take place once every two years.

Turning to enforcement, Camilleri said many of the measures will make it easier for authorities like Jobs Plus and Identità to enforce regulations though both entities are currently modifying their operations to come in line with the policy.

“We are not planning to fill everywhere with officers conducting inspections, even though that is important. But we introduced measures that can be checked via desk investigations and computerised programmes. In reality, the resources we need to increase are minimal because they are already there.”