Cab drivers on minimum wage get €4,000 a month after 'adjustments'

Cab drivers officially on a minimum wage are raking in some €4,000 through a payment practice described as questionable by industry sources, MaltaToday has learnt.

A review of several payslips of a cab driver employed with WT Global, Malta’s largest cab fleet, shows drivers earning a basic wage of around €6 an hour, placing them in the non-taxable income bracket.

The money however, piles up in the form of allowances, as the driver in question enjoys standard fixed allowances for food, mobile use, and biweekly fuel reimbursements.

Payslips obtained by MaltaToday show that despite being minimum wage employees, WT Global drivers earn roughly €4,000 in 'adjustments'

Payslips obtained by MaltaToday show that despite being minimum wage employees, WT Global drivers earn roughly €4,000 in 'adjustments'

Payslips obtained by MaltaToday show that despite being minimum wage employees, WT Global drivers earn roughly €4,000 in 'adjustments'

Payslips obtained by MaltaToday show that despite being minimum wage employees, WT Global drivers earn roughly €4,000 in 'adjustments'

But the most eyewatering figure is the adjustment for “personal protective equipment”, which reaches highs of €1,400 and brings the fortnightly wage of the driver up to €2,000 in hand.

Despite the high income, no tax was being paid on behalf of these workers by the company, according to the same payslips.

When asked about this allowance, WT Global said this amount refers to costs covered for vehicle upkeep, such as “internal and external cleaning, tyre and oil checks, replacement of parts and fluids, and similar work carried out outside office hours or when it is not feasible for the driver to visit our offices or garages, mostly upon presentation of receipts”.

A company spokesperson said WT Global’s maintenance team ensures all vehicles receive their scheduled servicing but in light of what they described as a “highly active fleet” that is in constant use, the vehicles are exposed to greater wear and tear.

“Vehicles in regular use demand ongoing care to maintain performance, reliability, and passenger comfort, ensuring both a good working environment for employees and the best service for clients. Our vehicles and services are continually reviewed by end clients, and we always ensure full compliance with cab platforms and local regulations,” the spokesperson said.

They added: “In some cases, vehicles may even require immediate cleaning between trips; for example, during the summer when passengers are picked up directly from sandy beaches to guarantee the next client a comfortable and reliable experience.”

But while the “personal protective equipment” allowance appears to cover anything from basic maintenance to cleaning, industry insiders familiar with the ins and outs of a cab business did not buy WT Global’s explanation. The sources said the company is responsible for the vehicles’ upkeep, and not its drivers.

“If the company’s maintenance team ensures that all vehicles are up to standard, why is the company reimbursing its drivers for expenses it incurred?” the sources asked.

MaltaToday’s sources in the cab industry suggest that WT Global’s practice is purely a tax avoidance measure, claiming that the imbalance between the driver’s minimum wage salary and their take-home pay “makes no sense”.

Separately, an industry expert on tax matters told MaltaToday that the amount of the personal protective equipment item versus the amounts of the other items does look suspicious and would require further investigation.