It’s no secret that Malta’s labour market has become extremely competitive, to the extent that employee benefits have shifted from supplementary perks to core elements of remuneration strategy.
“Group health insurance, in particular, has moved from discretionary to essential across sectors such as financial services, iGaming, aviation and technology,” says Adrian Cumbo from Antes Insurance Brokers.
“Over the past decade we have seen a fundamental change in how employers think about their Employee Value Proposition (EVP),” says Cumbo, Senior Manager Corporate & Advisory Employee Benefits. “It is no longer primarily salary-driven and wellbeing, access to care and protection against health risks have now become central to how companies compete for talent.”
International research supports this shift. Mercer’s Global Talent Trends report shows more than 70% of employers have increased investment in health and wellbeing benefits since 2020, while Willis Towers Watson data indicates over 80% now rank healthcare among their top three retention drivers.
In Malta, the change has been reinforced by post-pandemic expectations around healthcare access. While the public system remains a cornerstone of provision, employees increasingly expect faster access to specialists, broader provider choice and more comprehensive outpatient care.
A 2025 MISCO HR survey suggests 66% of Maltese employers now offer private health insurance, a figure that has risen steadily over the past decade and is expected to increase further.
“The pandemic permanently changed expectations,” says Cumbo. “Employees are far more aware of waiting times and the value of private healthcare pathways. That awareness has translated directly into demand for more comprehensive cover.”
Mental health has also become central to benefits design. Deloitte research indicates nearly 60% of employees globally now rank mental health support among their top priorities, accelerating the adoption of Employee Assistance Programmes and counselling services.
Yet despite growing uptake, Cumbo believes misconceptions still slow adoption among Maltese employers.
“Cost is still the first barrier and there is a perception that meaningful group health insurance is expensive, but entry-level schemes can be structured very efficiently when risk is pooled across a workforce.”
“Another misconception is behavioural where employers often worry about abuse of the system when in reality, insurers apply strict claims controls.”
“The third misconception is strategic and there is still a tendency to assume one standard scheme fits all. In practice, benefits can and should be segmented by workforce profile, seniority or need.”
Cumbo explains how the difference between basic and competitive packages has widened significantly, where basic schemes typically provide limited inpatient cover and. Competitive packages increasingly include outpatient care, oncology, preventive screening, dental benefits and structured mental health support. Life assurance and income protection are also evolving and complement the EVP, often linked to one’s salary and supplemented by critical illness and disability cover.
“Competitive employers have started to think more holistically. It is no longer just about illness protection. It is about prevention, resilience and financial wellbeing,” he added.
Rising healthcare inflation is also reshaping design choices.
According to Aon’s Global Medical Trend Rates report, medical inflation continues to exceed general inflation across most markets, driven by ageing populations, greater utilisation and rising treatment costs.
As a result, employers are reviewing schemes more frequently, placing greater emphasis on preventive care and investing more heavily in employee education.
“We are seeing annual reassessments become standard where employers want to ensure sustainability without eroding value.”
Preventive care is increasingly used as a cost-management tool, with GP access, screenings and wellness programmes positioned as mechanisms to reduce long-term claims exposure. The impact is most visible in recruitment and retention. Employers report improved candidate quality, faster hiring cycles and fewer offer rejections where strong benefits packages are in place.
“In a tight labour market like Malta, benefits can be the much sought-after decisive differentiator because a strong health insurance reflects an employer who is serious about wellbeing. That can have a direct impact on talent attraction and retention.”
Cumbo added that administrative complexity has also declined significantly, with digital claims systems and simplified underwriting reducing HR workload and making implementation more accessible.
For Antes Insurance Brokers, this shift reflects a broader structural change in how compensation is defined.
“The proposition is clear. Employees expect access, speed and quality in healthcare. Employers need to recognise that benefits are not optional extras but can be a core component of their value proposition.”
