Table of Contents
Introduction
This article explains how to manage two distinct changes in Indigo:
• Switching an employee’s Tax Profile between FSS Main and FSS Part‑Time
• Changing an employee’s working hours while keeping the same Tax Profile
These two processes are documented together because, in real scenarios, changes in Tax Profile and in working hours often occur at the same time, but neither automatically implies or triggers the other. Each process follows different rules in Indigo and under Maltese payroll legislation, so they are explained separately for clarity.
❗Important: ‘Full‑Time’ is an Employment Type, while ‘Main’ is a Tax Profile. These are separate settings that are often referred to incorrectly, so make sure you know the difference between them before following this guide.
More details➡️ here.
Switching Tax Profile from Main to Part‑Time
A switch from FSS Main (primary job, paying SSC) to FSS Part‑Time (secondary job, not paying SSC), or vice versa, always requires a termination and re‑employment. This is necessary because, for legal purposes, the employee must receive separate FS3s for each Tax Profile applied during the year.
💡 Good to Know
In Indigo, the Electronic Lodgement automatically merges FS3s for the same ID card number and civil status, so multiple FS3s do not cause submission issues with the Electronic Lodgement.
Before you Begin
Make sure the old employee profile has been terminated correctly so the Government Bonus is accurately calculated pro rata across both employee profiles.
Decide how to handle any remaining leave. You need to either:
Pay off the balance in the old profile, or
Switching the Tax Profile
In Indigo, go to HR > Employees, and select the required employee from the grid.
Terminate the existing employment record by clicking the Terminate Employee button.
If you don't want leave to be automatically paid out, disable the pay-off option in the existing profile. Otherwise skip this step.
Create a new employee profile (or copy the old one).
Select the new Tax Profile, set up the proper Employment Type and Work Schedule profile, and assign a new employment start date.
Complete the Previous Employment section in the new profile.
Manually adjust the leave entitlement to add remaining leave from the old profile to the new profile. Skip this step if leave was paid off.
*If the employee previously had Portal access, unlink the old employee from the user and link it the new one.
⚠️ Note: they will lose access to their previous payslips and FS3s.
Same Tax Profile, Different Working Hours
If the employee keeps the same Tax Profile (for example, remains 'Main') but their weekly hours change (e.g. from 40 to 30 hours), then there is no legal need for multiple FS3s, so you can choose to either:
Keep the existing employee profile (resulting in a single FS3), or
Terminate the existing employee profile and recreate it, to keep the calculations separate (resulting in two FS3s at the end of the year).
Keeping the Existing Profile
Keeping the Existing Profile
To keep the existing employee profile, you need to edit two specific parts of Indigo:
The Employee Profile, and
The Payroll
Employee Profile
Go to HR > Employees.
Click Edit and update the following details in the employee profile:
Employment Type: set Employment Type to Reduced Fixed Hours (if < 40 hours/week).
Work Schedule Profile: in the Employee Profile, edit the Work Schedule field value to reflect the new weekly hours arrangement.
Position History tab: add a new entry for the basic pay reflecting the updated working hours.
Leave Entitlement tab: calculate the leave entitlement as two separate pro‑rata periods:
from the start of the year (or contract) until the change
from the date of the change to year‑end
Update each leave type (e.g., VAC, SFP, SHP) with the combined totals.
⚠️ After the changes are saved, un-finalising and recalculating older payrolls may alter payslip hours.
Payroll
Go to Payroll & Leave > Payrolls.
Open the relevant payrolls.
Select the required employee
Update the following:
*Payroll Basic Hours (if applicable): if the change occurs mid-payroll, you also need to manually adjust basic hours for that payroll.
Government Bonus:✏️ Edit the 'Government Bonus' pay item value in the payroll's Pay Items tab and adjust the value accordingly.
Profile Termination and Recreation
Profile Termination and Recreation
The procedure is similar to the one for switching Tax Profiles. Refer to the same considerations before starting the process. Then, follow the steps below:
Go to HR > Employees.
Select the required employee from the grid.
Terminate the existing employment record by clicking the Terminate Employee button.
If you don't want to pay off leave automatically, tick Disable Leave Payoff. Otherwise skip this step.
Create a new employee profile (or copy the old one).
Set up the proper Employment Type (e.g. Reduced Fixed Hours) and Work Schedule profile (e.g. 30 hours/week).
Assign a new employment start date.
Complete the Previous Employment section in the new profile.
Manually adjust the leave entitlement to add remaining leave from the old profile to the new profile. Skip this step if leave was paid off.
*If the employee previously had Portal access, unlink the old employee from the user and link it the new one.
⚠️ Note: they will lose access to their previous payslips and FS3s.
🤔 Remember: if you are following this process mid-payroll, the employee will have two payslips for that payroll period:
One for the terminated employee relating to the first half of the payroll period.
One for the new employee profile relating to the second half of the payroll period.
Related Articles