A report which investigates the wage setting behavior of Maltese firms and the extent to which the labour market in Malta exhibits elements of flexibility. The results presented in this report are based on a survey of 161 firms undertaken as part of the Wage Dynamics Network for reference year 2008. The network is a Eurosystem research network of which the Central Bank of Malta (CBM) is a member. The aim of the survey was to identify the characteristics and sources of labour cost dynamics that are significant for policymakers. The data capturing exercise was obtained through face-to-face questionnaires.