Prior to Malta`s accession to the European Union (EU), the MSA and the Social Security Act (SSA) exempted foreign seafarers employed on board Maltese-flagged vessels from paying social security contributions in Malta. Since local and international rules provide for a certain degree of flexibility with regard to the employment of seafarers, the same employment appears to be essentially based on the contractual arrangement between the shipowner and seafarers and is therefore more flexible than the employment of other categories of workers working in Malta. On the other hand, as regards Maltese workers who are not seafarers, the EIRA expressly emphasises that the amount of compensation must be determined by the Labour Court on a case-by-case basis, taking into account several circumstances, including the age and abilities of the employee, the conduct of the employee during the employment relationship, the amount of his salary, etc. In this context, it is important to bear in mind that the employment contract must be easy to understand on the part of seafarers and comply with the minimum legal conditions of employment in order to be legally enforceable. The fee to be paid to the administration for the Maltese endorsement is € 60 per application to be paid when filing the application. In the case of a reissue/notification for the lost flag State, the fee is €30 per application. Transport Malta only requires the issuance of visas for officers serving on board Maltese ships, all other books, certificates and supplementary certificates of national seafarers are recognised by the flag State. In addition, seafarers should have clear and detailed local rules regarding the payment of social security contributions and their rights with regard to the social security system, such as sickness benefits, unemployment benefits, old-age benefits, workers` compensation, family allowances, maternity and disability benefits, among others. It is unlikely that the salary received by non-Maltese seafarers residing in Malta will be subject to income tax in Malta when the employment is carried out outside Malta. Below is a list of frequently asked questions about registering the Maltese flag. For a personal consultation, we recommend contacting our maltaflag@amlmalta.com office, and our registration team will be happy to assist you with any questions you may have.

A ship is initially provisionally registered under the flag of Malta for six months, which may be extended for one or more periods not exceeding a total of six months, during which all documents must be completed and a permanent register certificate issued. In particular, under Article 11(4) of Regulation (EU) No 883/2004, an activity as an employed or self-employed person normally pursued on board a ship at sea flying the flag of a Member State is to be regarded as an activity pursued in that Member State. However, a person employed on board a ship flying the flag of a Member State and remunerated for that activity by an undertaking or a person having its registered office or establishment in another Member State shall be subject to the legislation of the latter Member State if he resides in that State. The company or person paying the salary is considered an employer. As pointed out by the International Labour Organizations (ILO), seafarers are often exposed to difficult working conditions and particular occupational hazards. In fact, because they work far from home, they can be vulnerable to exploitation and abuse, non-payment of wages, non-compliance with employment contracts, exposure to poor nutrition and poor living conditions. With a few exceptions, seafarers working part-time have the right to exercise all of the above rights on a pro rata basis. Since seafarers and shipowners are often of different nationalities, the same seafarers may operate within and between different national territories. As a result, they may be subject to different international and national laws and may have doubts as to which law would be applicable in matters concerning them. One of the decisions of the owners, which can affect the ship both operationally and financially, is the selection of the most appropriate vessel register. The labelling decision for owners and managers is a complex issue and requires careful consideration of several operational, legal and technical criteria.

As is apparent from Article 39 of the EIRA, the employment of seafarers is governed by the Merchant Shipping Act (CAP 234 of the Laws of Malta, hereinafter referred to as `the MSA`) and the Merchant Shipping Rules (Subsidiary Legislation 234.51, hereinafter referred to as `MSF`), which have in principle taken into account all the working and social conditions of seafarers listed in the ILO. As a general rule, merchant ships over 25 years of age are not registered, although this may be considered in certain circumstances. Ships 15 years of age and older shall be successfully inspected by an approved flag State prior to provisional registration. Ships 10 years of age and older but less than 15 years of age shall be successfully inspected by a flag State inspector before or within one month of provisional registration. In addition, it is necessary to regulate several aspects related to the employment of seafarers within the meaning of Maltese law. This applies to wages, as there is no legal definition of the level of wages to be paid by shipowners to seafarers. In this context, the MSA only indicates that wages include remuneration and the minimum weekly wage for several categories of seafarers (i.e. approximately EUR 170 per week), but the remuneration mentioned is not listed.

As far as the regulations that apply to workers other than seafarers are concerned, we can therefore only assume that such remuneration should include wages, overtime worked, paid holidays, bonuses and any other compensation paid by shipowners to seafarers. The guidelines for minimum crew safety set out below include the principles set out in IMO Resolution A.1047(27). Specific requirements may be assessed on the basis of a risk assessment and detailed application. .