The National Productivity Board was established in line with L.N. 275 of 2019 under the Malta
Council for Economic and Social Development Act (CAP. 431). The Malta Council for Economic
and Social Development (MCESD) is an advisory council that issues opinions and
recommendations to the Maltese government on matters of economic and social relevance.
Under the remit of the MCESD is the National Productivity Board, which assesses and analyses
productivity and competitiveness in Malta.

The National Productivity Board was set up in 2019. The Board is composed of 11 members,
comprising the chairperson and 10 other members. The Chairperson of the MCESD is ex
officio and acts as the Chairperson of the Board. The other 10 members comprise of a senior
official nominated by the Minister for Finance, a member nominated by the Governor of the
Central Bank of Malta, four members nominated by the workers’ organisations constituted
bodies sitting in the Council, and four members nominated by constituted bodies
representing national employers’ organisations forming part of the Council. The National
Productivity Board is also tasked with the preparation of the annual report.

The Board fulfilled the objectives of the EU Council recommendation in relation to the
National Productivity Boards, as well as the diagnosis and analysis of productivity and
competitiveness-related developments in Malta and Gozo

The focus of this year’s Annual National Productivity report is on assessing the relationship between wages and productivity in Malta. The report is structured into five chapters, covering aspects such as the economic overview of Malta, human capital and skills analysis, relevant research, innovation and digitalisation indicators and indices, an econometric model to assess the relationship, and ten S.M.A.R.T. recommendations derived from the analysis.