Welcome onboard your Maltese Flagged Yacht!

This page is dedicated to the crew members of Maltese Yachts managed by One-to-One Yacht Management.

On this page, you will find useful information regarding the social security, benefits and taxes in Malta and the situation of employees in relation to a Maltese flag vessel.

WELCOME ONBOARD A MALTESE FLAGGED YACHT

1. Crew residing in the EU/EEA/Switzerland/UK (post-Brexit)

Under an EU flag, which includes Malta, residents of the EU/EEA/Switzerland (citizens or not) must be insured according to the law of the EU flag State, and in that State, under Regulation EC/883/2004 as amended (see Article 11, Point 4).

Therefore, if you are a resident of the EU/EEA/Switzerland/UK (citizens or not), you must be insured according to the law of Malta and pay Social Contributions there.

The only exception for EU/EEA/Switzerland/UK residents, lies in the sole case where employer and employee reside in the same Member State and where they affiliate in that State for the social security cover, which is not the case for most crew member.

2. Crew residing in third country

Crew members who are neither residents nor citizens of the EU/EEA/Switzerland/UK, hence citizens residing in a third country, working under the Maltese flag, must be insured according to the law of their country of residence.

3. Benefits of being insured in Malta

Persons insured in Malta may benefit from a European Health Insurance Card (EHIC) and from an S1 form if they reside in a Member State other than Malta (on presentation of the salary slips showing the contributions);

They can also obtain the U1 form in order to claim unemployment benefits in their country of residence;

4. How much does it cost the seafarer?

Contributions are calculated based on a percentage of the weekly salary up to a certain threshold (€455.79 for 2018); if the weekly salary is over that threshold, a fixed sum is upheld.

Roughly, Social Security Contributions amount to a total of around €200 per month.

Weekly SSC is now: €44.21 each and the Maternity fund contribution is €1.37 = Total contribution of €45.58 per week. So whatever the salary, if it is over €455.79 weekly, the Social Security Contributions are capped to a total of €45.58 per week.

The number of weeks per month is calculated based on the number of Mondays in a month (4 or 5).

So for a month with 4 Mondays, the cost is € 45.58 x 4 = € 182.32.

For a month with 5 Mondays, the cost is € 45.58 x 5 = € 227.90

Although these social contributions are taken of the seafarer’s gross pay, often the employer will chose to cover that expense.

Remember, this is not applicable for third country residents.

4. How much does it cost the employer?

The cost to the employer is the same as for the seafarer. It is exactly the same amount as for the seafarer.

If the employer elects to pay the seafarer’s part as well, the total cost would be:

  • For a month with 4 Mondays, the cost is € 45.58 x 4 x 2 = € 364.64
  • For a month with 5 Mondays, the cost is € 45.58 x 5 x 2 = € 455.80

Remember, this is not applicable for third country residents.

5. Pensions

Regarding the pension aspect, each state pays a rate of benefit which reflects the length of the claimant’s insurance in their scheme; this applies anywhere in the EU, EEA, and Switzerland; a person who has worked for more than one year in two or more of the above-mentioned states will be paid a pension proportional to the periods in these states

So, if for instance a person worked 20 years in Malta, 15 years in Italy and 5 years in the United Kingdom (total 40 years), this person should get a pension of not less than 20/40 years of the theoretical amount from Malta, 15/40 from Italy and 5/40 from the U.K; all these states will work out the full theoretical rate of pension as if the person worked the whole 40 years there;

It is the portability of rights.

6. Is it mandatory?

Returns and payments are not optional, they are mandatory. It is the law.

7. Annual Income Tax returns for crew members

At the latest on the 30th of June of each year, each crew member who worked on a Maltese Flag Ship are required to submit a tax return in Malta.

If the crew member is not a resident or citizen of Malta, there will be no taxes to be paid in Malta, but the declaration might still need to be made.

It is the crewmember’s responsibility to file and declare his revenues in his/her country of residence or citizenship.

We offer this service.

8. WYCC healthcare plan

Although you have the basic health coverage under Malta’s social security, it will not cover the majority of your health expenses. Therefore, the Maltese legislation requires that a private insurance is added to it (regardless of your residence).

We usually choose to provide you with a WYCC Healthcare plan which give you an extra private protection. But there are other options.

9. Summary

The advantages for crewmembers to be registered for social security in Malta are that they are covered in their EU/EEA/Swiss country of residence for health, retirement and unemployment, under the principle of equal treatment within the EU/EEA/Switzerland. The nationality is not the criteria to be withheld, as what matters is the country of residence, meaning that a non-EU/EEA/Swiss citizen will have to provide a residence document evidencing the residence in the EU/EEA/Switzerland.

10. Disclaimer

This information is valid as of June 2019. Some changes might have happened if you are reading this page after that date.

Please contact your Yacht Manager if you have any other question.

Crew Management

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