Social Security for Yacht Crew Working on Malta Registered Yachts

Introduction

It is the purpose of this guide to outline the social security obligations of both employer and employee in respect of yacht crew working onboard Malta registered yachts.

The Malta flag has become one of the most popular European flags for yachts of all sizes and through the Oceanskies office in Malta we register many vessels each year with Transport Malta who are the Maltese vessel registration authority.

Obligations for EU resident seafarers

All EU national and resident seafarers working on a Malta registered yacht must be registered with Department of Social Security in Malta unless already contributing to another EU social security regime (an exemption will have to be applied for, in writing with supporting evidence of the payment of social security contributions in another member state).

For the majority of crew members the social security contribution rates per Monday worked paid by the employer capped in 2024 will be 53.23 Euros for the seafarer (previously 51.60 Euros) and 53.23 Euros for the employer (previously 51.60 Euros).

Maternity contributions are due to be covered by the employer and for the majority are capped at 1.60 Euros.

Benefits of contributing to the Malta Social Security Scheme

1. A European Health Insurance Card offered to those insured in Malta and residing in a Member State other than Malta;

2. Unemployment benefits in the seafarer’s country of residence, claimable following the completion of a U1 form;

3. Pension secured at a rate of benefit reflecting the length of the claimant’s insurance in their scheme paid by any EU, EEA state and Switzerland; and

4. Protection from the repercussions of the French Decree 2017/307 by means of mandatory returns and payments on social security, amongst others. 

The full list of benefits available when contributing to the Malta Social Security scheme can be found on the Maltese government website - https://socialsecurity.gov.mt/en/international-relations/eu-coordination-rules/

Employment of Crew through non EU (offshore) yacht owning or employment / payroll company

Employment of crew through a non EU company (i.e. Guernsey, BVI etc.) does not in any way avoid the responsibility of both the employer and the yacht crew member to make social security contributions in Malta.

Yacht crew members who are employed by a non EU company who are not making social security contributions to the Malta Department of Social Security need to take action and should contact us for further assistance.

French social security decree for seafarers

The Government of France have enacted legislation designed to ensure that seafarers working on French flagged vessels as well as seafarers residing in France are provided with adequate social security protection in line with MLC 2006.

We have prepared a guide providing further information regarding the legislation that can be found here on our website:

French social security obligations for Yacht Crew working onboard yachts flying the French flag or residing in France

Payment of social security obligations in Malta by both employer and employee for yacht crew established in France is complies both with Article 11.4 of EU Regulation 883/2004 (which deals with social insurance liability with regards EU nationals who are resident in an EU Member State and working on board vessels flying the flag of a Member State) and the new French legislation.

The OCL Malta Yacht Crew Employment Service

OCL is registered as an employer with the Malta Inland Revenue Department and, as such, is able to register the yacht crew that it employs with the Malta Department of Social Security and arrange for the payment of social security contributions.

Crew members who are registered will be issued with an S1 Certificate (healthcare cover certificate) and A1 Certificate (social security cover).

Pricing

Fees for employing seafarers through OCL are as follows (per crew member, in EUROS or currency equivalent):

1. One off fee:

Take on of crew member including: - Checking of qualifications - Establishment of payroll - Provision of crew contracts of employment / Seafarers Employment Agreement

POA

2. Recurring monthly fee:

Employment & Payment of crew member including outbound bank charges:

POA

 

Malta Yacht Registration

As a result of the clear framework provided by the Malta social security system we have transferred the registration of a significant number of yachts to the Malta register of ships including a number of yachts that are based in France so that their crew can be enrolled into the Malta social security system as an alternative to the ENIM system implemented by the French authorities.

Today Malta is the largest EU register for both ships and yachts and provides many other benefits as a high quality EU register of yachts and the jurisdiction provides yacht owners with other fiscal advantages.

Further Information

To sign up to the OCL crew employment and payroll or to request further information about Malta yacht registration please do not hesitate to contact Tom Becker (who is also a fluent French speaker) here at Oceanskies.