Focus area
Through this scheme, Malta Enterprise supports businesses in providing training for the development and updating of the skills and knowledge of their workforce, when such training is not legally mandatory for the operation of the business. It backs training and knowledge transfer initiatives that support employees to acquire new skills, knowhow and knowledge. Through the supported training it is envisaged that assisted undertakings will upgrade skills of employees, address skills shortages, facilitate re-skilling, tackle skill mismatches and work towards developing a knowledge-based workforce.
Implementation level
At what level is the initiative implemented?
Starting period
TIMESPAN: In what year did the initiative commence?
The legal notice was issued in 2018. The initiative then became operational in 2020.
PERSPECTIVE: is the initiative based on evidence derived from skill forecasts or foresight activities?
Yes - The Scheme is implemented in light of the National Employment Policy and the 'New Skills for New Jobs' policy initiative, developed at the EU level.
Policy area
To which POLICY AREAS(s) does the initiative apply?
How it is funded?
Funded by national government

Skill mismatch

Skill mismatch target
What type(s) of skills MISMATCH does the initiative aim to addresses?
Underqualification (individuals' qualifications/credentials are below their job's needs)
Skill shortages (employers cannot fill their vacancies due to a lack of skills in the labour market)
Skill gaps (worker's skills are below the level of proficiency required by their employers and jobs)
Skills obsolescence (some or all of an individual's skills are no longer relevant to the current employer or in the labour market generally)
Skills matching focus
How does  the initiative address skills mismatches?
The training provides participants with skills that enhance their potential for personal development and specifically addresses the skills and knowledge requirements of the entity for which they work.
People working in various economic sectors qualify for this scheme.
Skills delivered
What types of skill  does the initiative deliver?
More advanced digital skills
General employability skills (team working, communication, etc.)
Green skills
Career management skills


What methods of undertaking skills assessments and / or skills anticipation does the policy instrument utilise?
Skills foresight
All training provided through the scheme should lead to pre-established outcomes relevant to the current/future role of the trainee.
Use of skills intelligence
How is labour market information / skills intelligence used within the initiative?
Mainly in determining the need for funding to incentivise the provision of on-the-job training. An additional 5 million euro was in fact injected into this scheme last year to support economic recovery, following the hit experienced by COVID-19.
Mainly in incentivising business leaders to invest in on-the-job training for their employees.


Main responsible body
Main body or organisation with overall responsibility for the initiative.
National agency
Malta Enterprise
Other involved organisations
Which other organisations have a role in the initiative?
National ministry
Ministry for the Economy, Investment and Small Businesses - Involved in this scheme through the strategic direction that it provides to Malta Enterprise.
Who are the intended beneficiaries?
The main beneficiaries - listed below - are company employees who are seeking to upgrade their skills and contribute to the minimisation of skills shortages and mismatches, whilst working towards the development of a knowledge-based workforce. To date, the scheme has financially supported business undertakings in providing training to develop and update the skills and knowledge of their workforce, when such training is not legally mandatory for the operation of their business.
Adults in employment with upskilling potential
Adults in employment with reskilling potential
Employed adults at risk of job displacement


Success factors
SUCCESS FACTORS in the implementation
The sudden shift to digital/remote working for multiple industrial sectors has further incentivised business undertakings to provide additional in-house training for employees, enabling the sharing of skills between experienced and younger employees, as well as addressing skills dissipation once workers retire.
BARRIERS in the implementation
In the current COVID-19 climate, national measures may limit the type of in-house training offered. Training providers have had to think outside the box to keep trainees engaged and maintain similar levels of effectiveness.
Monitoring and evaluation
MONITORING and EVALUATION: Is progress measured regularly? What are the indicators used to measure progress of the policy instrument? Have any evaluations been conducted?
Each and every beneficiary of the scheme is monitored and assessed on basis of the 'pre-established outcomes' that are outlined whenever an application is submitted to Malta Enterprise. On a more generic level, the scheme is relatively new, therefore thorough evaluations and assessments are yet to be published.
UPDATES: whether there have been any major updates of the initiative since it has been implemented?
A top-up of €5 million was allocated to the Skills Development Budget in mid-2020. This top-up is directed towards those businesses that employ fewer than 50 persons.
EVIDENCE ON EFFECTIVENESS: How effective is the policy instrument?
The recent top-up of €5 million serves as proof that the scheme which had already been in implementation pre-COVID was seen as an effective tool to support companies - especially the smaller ones - in keeping afloat and using this potential 'slow-down' to upskill and re-skill their workforce.
SUSTAINABILITY: How sustainable is the policy instrument? Do you expect the instrument to continue over the next few years and why?
The future of work that we spoke of for so long, is suddenly becoming the present. The Skills Development Scheme has, and is, providing employers with the opportunity to make the most of this shift and ensure that their employees are well equipped to keep performing their roles with all the changes that are being experienced.

Other instruments in Malta