International Employment Lawyer | Guide to Pay Transparency

Author: Pamela Dingli

Gender pay gap reporting

What laws are in place regarding gender pay gap reporting in your jurisdiction?

Gender pay gap reporting became a legal obligation in Malta with the transposition of the EU Pay Transparency Directive (Directive (EU) 2023/970) by means of the Equal Pay (Transparency and Reporting) Regulations (S.L.452.172), which were published on 5 June 2026 under the Employment and Industrial Relations Act (CAP 452 of the Laws of Malta), hereinafter “the Act”. Regulation 2 of these Regulations, which lays down its scope, stipulates that these new Regulations intend to align Maltese provisions on equal pay for equal work with the EU Directive through pay transparency and enforcement mechanisms. These Regulations define a Pay Gap Report as a report prepared by an employer employing at least 100 employees on the pay gap between male and female workers. Apart from specifying the gender pay gap, such reports must include additional details specifically outlined by these Regulations, namely:

• The gender pay gap in complementary or variable components
• The median gender pay gap
• The median gender pay gap in complementary or variable components
• The proportion of female and male workers in each quartile pay band
• The gender pay gap between workers by categories of workers, broken down by ordinary basic wage or salary and complementary or variable components.

Which companies are in scope of mandatory gender pay gap reporting?

The Equal Pay (Transparency and Reporting) Regulations refer to employers as having the same meaning under the Act. The latter states that the term includes a partnership, company, association or other body of persons, whether vested with legal personality or not, employers in both the public and the private sectors.

For the purposes of gender pay gap reporting, employers in both the public and private sectors who employ at least 100 workers are legally obliged to prepare a pay gap report. Employers employing less than 100 workers do not have such a legal obligation. Nevertheless, they may still choose to prepare such pay gap reports on a voluntary basis.

When determining employee numbers, what is the relevant test (for example, the number of employees in a particular entity, those within a specific jurisdiction, or is it necessary to include employees in foreign branches and parent entities)?

Regulation 3 (1) of the Equal Pay (Transparency and Reporting) Regulations stipulates that such Regulations apply to all workers who have an employment relationship as defined in the Act, that is workers who have entered into a contract of employment with an employer.   

Additionally, in the Maltese Transparent and Predictable Working Conditions Regulations (S.L.452.126 of the Laws of Malta), the “employer” is the physical or legal entity (including a partnership, company, association or other body of persons, whether vested with legal personality or not) entering into and signing the employment contract between the Parties. In fact, the law makes it mandatory that the contract of employment contains the name, registration number and registered place of business of the employer.

When determining employee numbers, therefore, the relevant test shall be the number of employees of the employer so designated on the contract of employment of the employees concerned. It is therefore a test based on the particular entity in question. The determining factor will be who is the employer for all intents and purposes of law, that is, the employer designated on the employment contract.

What types of employees must be taken into account for gender pay gap reporting purposes? Are certain non-employees/employee-like staff to be included (for example, self-employed contractors and agency staff)?

There is no direct definition of ‘employees’ in the Equal Pay (Transparency and Reporting) Regulations. However, at  Maltese law, specifically in terms of Article 2 of the Act, “employee” is defined as any person who has entered into or works under a contract of service, or any person who has undertaken personally to execute any work or service for, and under the immediate direction and control of another person, including an outworker, but excluding work or service performed in a professional capacity or as a contractor for another person when such work or service is not regulated by a specific contract of service. Once again, reference shall also be made to the employment contract, which according to the Transparent and Predictable Working Conditions Regulations (S.L.452.126) shall include the name, a legally valid identification document number, gender and address of the employee. To this end, all employees falling within the definition of Chapter 452 will be taken into account. Temporary Agency Workers will be considered as workers of the temporary agency as any other employee. Self-employed contractors are not employees for all intents and purposes of Maltese employment law unless in reality they are “employees” by reason of a legal presumption set in particular laws, which are the Employment Status National Standard Order (S.L.452.108) and the Digital Platform Delivery Wages Council Wage Regulation Order (S.L.452.127).

Furthermore, it is worth noting that regulation 9 of the Equal Pay (Transparency and Reporting) Regulations stipulates that a gender pay gap report must include the gender pay gap between workers by categories of workers. It is important to clarify that ‘category of workers’ is defined in regulation 2 as workers performing the same work or work of equal value grouped in a non-arbitrary manner based on the non-discriminatory and objective gender-neutral criteria by the employer and, where applicable, in cooperation with the employees’ representatives in accordance with the provisions of any law in force in Malta.

Do employee representative bodies have any rights in the reporting process and, if so, please specify the nature of the involvement right?

In the Equal Pay (Transparency and Reporting) Regulations, employee representative bodies have been given ample rights and powers throughout the reporting process.

a. Right to be Consulted

The accuracy of the information contained in the Pay Gap Report shall be confirmed by the employer’s management following consultation with the employee representatives. Employees’ representatives shall have access to the methodologies applied by the employer in compiling the report. Furthermore, where an employer cannot objectively justify gender pay differences, the employer must remedy the situation within a reasonable period of time in consultation with the  Monitoring Body, that is, the Department for Industrial and Employment Relations (hereinafter referred to as “the DIER”), which is the public authority transposing, monitoring and enforcing all of Malta’s employment laws. The latter must in turn consult the employees’ representatives to ensure that the situation is rectified. The Equality Body may be consulted by the DIER if required.

b. Receive and Request Data

 Employers must provide information on the gender pay gap between workers by categories of workers to employees’ representatives. Employees’ representatives have the right to request any additional clarifications and details from the employer regarding any data provided. In this regard, employers have the legal obligation (as indicated by the term ‘shall’) to respond to such requests within a reasonable time by providing a substantiated reply.

What is included as “pay” for gender pay gap reporting purposes?

In the Equal Pay (Transparency and Reporting) Regulations, ‘pay’ is defined as the ordinary basic or minimum wage or salary and any other consideration, whether in cash or in kind, including complementary or variable components, which a worker receives directly or indirectly in respect of his or her employment from his or her employer.

There is only one definition of ‘pay’ and it applies in respect of all the provisions of the Regulations, including in relation to pay reporting obligations.

It must be noted that some articles of the Pay Transparency Directive were implemented in August of last year, by means of the Transparent and Predictable Working Conditions Regulations. The latter introduced a definition of “pay level”. This is defined as an employee’s gross annual pay and the corresponding gross hourly pay. By defining pay in both yearly and hourly terms, Malta is ensuring that those working in the same position are paid on the basis of equal pay irrespective of the number of hours for which the employee is being engaged to carry out the particular work. Indeed, the workforce may include full-time employees, part-timers and employees working varied work hours. The same definition of ‘pay level’ was subsequently adopted last June in the Equal Pay (Transparency and Reporting) Regulations.

Whom must the report be provided to and where does it have to be published?

In accordance with the Equal Pay (Transparency and Reporting) Regulations, (SL 452.172), employers have the legal obligation to submit the relevant reports within fourteen (14) working days from the end of a relevant yearly period. The Pay Gap Report shall be communicated to the Monitoring Body in such format as may be prescribed from time to time by the same Body, which is the DIER.

Though not legally obliged, the employer may also choose to make the information contained in the report publicly available by for example publishing it on its website. In this provision, the information on the gender pay gap between workers by categories of workers, broken down by ordinary basic wage or salary and complementary or variable components is expressly excluded. In respect of the latter specific information, employers shall provide the same to all their employees and their representatives, besides the DIER. The Equality Body has the right to request the employer information on the gender pay gap between workers by categories of workers, broken down by ordinary basic wage or salary and complementary or variable components, in which case the employer shall comply. Employers must provide such information to these two bodies from the previous 4 years upon request.

Further to the above, the employer must provide any further detail, explanation or clarification regarding such reports to workers, employees’ representatives, the Monitoring Body or the Equality Body who shall have the right to make such requests. The employer shall reply to requests of the sort within a reasonable time and the reply shall always be substantiated.

It must be noted that the DIER, which as stated, is the Monitoring Body in terms of the Regulations, includes the labour inspectorate, The labour inspectorate aforesaid is established by Part VI of the Employment and Industrial Relations Act (Chapter 452). With regards to equality bodies in Malta, there are a number of such equality bodies with the most relevant in the context of pay reporting being the National Commission for the Promotion of Equality (hereinafter referred to as “the NCPE”). Indeed, the Regulations define the Equality Body as the NCPE or such other entity assuming the responsibilities of the same in accordance with the law.

How frequently and when do employers have to report?

The frequency at which employers must report varies according to the number of workers. All employers employing at least 100 workers shall submit the reports within 14 working days from the end of the relevant yearly period as follows: 

• 250 + workers: First report shall be submitted by June 7, 2027, and annually thereafter. The first report shall relate to the period between 1st January 2026 to the 31st December 2026.
• 150 – 249 workers: First report shall be submitted by June 7, 2027 and reports shall be submitted every 3 years thereafter. The first report shall relate to the period between 1st January 2026 to the 31st December 2026.
• 100 – 149 workers: The first report shall be submitted by June 7, 2031 and reports shall be submitted every 3 years thereafter. The first report shall relate to the period between 1st January 2030 to the 31st December 2030.

What are the penalties or sanctions for non-compliance with the reporting obligation?

The Equal Pay (Transparency and Reporting) Regulations make it clear that criminal proceedings may be initiated in relation to any offence committed under such Regulations.

Indeed, Regulation 20 stipulates that individuals who contravene any of the Regulations, including therefore the reporting obligations, shall be guilty of an offence and shall on conviction, be liable to a fine (multa) of not less than 2,500 Euro and not more than 5,000 Euro. The punishment is increased to a fine (multa) of not less than 5,000 Euro and not more than 7,500 Euro where the offence consists of or is connected with a breach of the principle of equal pay for equal work or work of equal value on the basis of gender and intersectional discrimination. Regulation 20 further stipulates that the Court shall impose a more severe punishment if the offence constitutes a repeated infringement.

Are there already any legal requirements in place pertaining to joint pay assessments with employee representative bodies? If so, when are such assessments triggered?

In terms of the Equal Pay (Transparency and Reporting) Regulations, where the gender pay report indicates that the gender pay differences are not justified on the basis of objective and gender-neutral criteria, employers shall remedy the situation within a reasonable time in consultation with the Monitoring Body who shall in turn consult the employee representatives and possibly also the Equality Body. A joint pay assessment shall be conducted by the employer in consultation with the employees’ representatives where:

• Where the Pay Gap Report demonstrates a difference in the average pay level between male and female workers of at least 5% in any category of workers;
• Where the employer has failed to justify this difference on the basis of objective and gender-neutral criteria;
• Where the employer has failed to remedy this pay difference within six months from the date of submission of the pay reporting.

How do the requirements under the Pay Transparency Directive differ from your jurisdiction’s current gender pay gap reporting system?

The Equal Pay (Transparency and Reporting) Regulations have essentially transposed the EU Pay Transparency Directive into Maltese law. Therefore, the reporting requirements stipulated in the Maltese Regulations are identical to those of the EU Pay Transparency Directive. The Maltese transposition has however set the period of 14 working days from the relevant yearly period for the submission of reports. Moreover, in relation to joint pay assessments, the assessments shall be communicated to the Monitoring Body within 10 working days from completion. The Regulations also provide that an employer or an employee representative may request the Monitoring Body for a conciliation in case of a disagreement as to the conduct of the joint pay assessment or the implementation of the resulting measures.

Is there any suggestion that other pay gap reporting requirements may be implemented in the future; for example, pay gaps regarding ethnicity or disability?

Although there is no suggestion that pay gaps will be implemented in relation to other grounds such as ethnicity or disability, it would be unjustified to completely rule out the possibility of future advancements concerning pay gap reporting requirements.

Job evaluation systems

Is it mandatory for employers to have a job evaluation system in place and are there any legal requirements pertaining to the methodology and the criteria to be applied?

There is no mandatory requirement for employers to have a job evaluation system in place. Instead, the Equal Pay (Transparency and Reporting) Regulations lay down the mandatory legal principles which every employer’s chosen system must adhere to.

According to the Regulations, the employer shall adopt and maintain written policies or criteria establishing the objective and gender-neutral criteria used to determine workers’ pay, pay levels and pay progression. This is linked to the employers’ obligation to ensure that they have pay structures that ensure equal pay for equal work or work of equal value.

Indeed, employers are not precluded from paying workers performing the same work or work of equal value differently or from setting pay progressions on the basis of objective, gender-neutral and bias-free criteria including but not limited to performance and competence. The Regulations include an already-existing principle of Maltese Law which is to the effect that nothing shall preclude an employer and a worker or a union of workers to agree amongst others on different salary scales, brackets or steps, annual increments and other conditions of employment that are different for those workers who are employed at different times where such salary scales have a maximum which is achieved within a specified period of time.

Pay structures shall be such as to enable the assessment of whether workers are in a comparable situation with regard to the value of work on the basis of objective, gender-neutral criteria agreed with employees’ representatives where such representatives exist. Such criteria shall not be based directly or indirectly on workers’ sex and shall include skills, effort, responsibility and working conditions and, if appropriate, any other factors which are relevant to the specific job or position. Such criteria shall also be applied in an objective gender-neutral manner, excluding any direct or indirect discrimination based on sex, and taking into account any soft skills.

In essence, employers must implement pay structures that evaluate roles based on objective, gender-neutral criteria such as skills and effort. Nevertheless, the list of factors explicitly mentioned in the first provision is not exhaustive. Employers may choose to incorporate other additional factors which are not explicitly mentioned, provided that such factors are relevant to the specific job or position and are based on objective and gender-neutral criteria.

To sum up, although the Maltese Regulations do not prescribe a specific job evaluation system, any system adopted by employers must be grounded in objective, gender-neutral criteria.

Other legal provisions in Maltese law guide employers as to the actual application of the equal pay principle. Maltese employment law includes the notion of equal pay for equal work or work of equal value in general terms. Article 27 of Chapter 452 states that “Employees in the same class of employment are entitled to the same rate of remuneration for work of equal value: Provided that an employer and a worker or a union of workers as a result of negotiations for a collective agreement, may agree on different salary scales, annual increments and other conditions of employment that are different for those workers who are employed at different times, where such salary scales have a maximum that is achieved within a specified period of time… any distinction between classes of employment based on discriminatory treatment otherwise than in accordance with the provisions of this Act or any other law shall be null and of no effect”.

A “class” of employment, when used in the context of a group or a category of employees, shall refer to the groups or categories listed in a collective agreement. Where there is no collective agreement at the place of work, or where there is one but it does not stipulate groups or categories of employees, it shall refer to the work performed or expected to be performed independently of the title or name given to the post. This means that when determining a class of employees, regard must be had of the collective agreement which applies at that particular workplace (if there is such an agreement in place). In the Maltese jurisdiction, a collective agreement is enterprise-based and reached between the employer and the recognised union representing the employees or a class of employees at that particular workplace or entity. It is essentially an agreement entered into between an employer and a trade union to regulate the conditions of employment within that workplace. Thus, the collective agreement is seen as best-placed to determine classes and categories of employees, especially when it comes to the correct application of the principle of equal pay for equal work or work of equal value, including the comparability element when assessing the work of one employee against the work other employees.

The Equal Treatment in Employment Regulations (S.L.452.95), which focuses on equality on specific grounds, including gender, and which implements various EU Equality Directives, holds that “it shall be the duty of the employer to ensure that for the same work or for work to which equal value is attributed, there shall be no direct and indirect discrimination on grounds of sex with regard to all aspects and conditions of remuneration”. The law further states that the employer shall ensure that where a job classification system is used for determining pay, it shall be based on the same criteria for both men and women and so drawn up as to exclude any discrimination on grounds of sex.

The Transparent and Predictable Working Conditions Regulations (S.L.452.126) refer to the right of an employee to request from the employer at any time during employment the individual pay level and the pay levels for categories of workers performing the same work as them.

Is the introduction of a job evaluation system subject to involvement rights of employee representative bodies? If so, please specify the nature of the involvement right.

The Equal Pay (Transparency and Reporting) Regulations state that pay structures should be such as to enable the assessment of whether workers are in a comparable situation with regard to the value of work on the basis of objective, gender-neutral criteria. It is expressly stated that these criteria are to be agreed with employees’ representatives where such representatives exist. There should therefore be agreement with the representatives.

If not mandatory, is it common market practice for employers to have a job evaluation system in place and what are typical characteristics of such a system?

Job evaluation systems are useful components to establish pay structures based on job levels. The aim is to measure the relative value of job positions or designations, including to ensure adherence with the equal pay for equal work or work of equal value principle. Indeed, methods used in these systems should be fair, promote equal work for equal value, and prevent pay discrimination by setting gender-neutral criteria.

While not directly legally mandatory, job evaluation systems are used in medium-to-large organisations, especially when operating under collective agreements and public sector entities. Indeed, there are some employers who opt to carry out a job evaluation to see where they fare. This supports fair and transparent dealings which will be useful with regard to enforcing pay transparency obligations.

Are job evaluation systems subject to consultation or agreement with employee representatives or trade unions?

As previously stated, the law mandates that the underlying job evaluation criteria must be jointly agreed upon by the employer and employees’ representatives.

Pay information entitlements of applicants and employees

Do applicants have a legal entitlement to information on the pay or pay range for the role they are applying for, and, if so, what information must be provided to applicants, in what form, and when in the application process?

Through the Transparent and Predictable Working Conditions (S.L. 452.126), specifically new Regulation 5A thereof, applicants for employment shall have the right to receive from the prospective employer information about the initial pay, or its range, to be attributed to the position concerned. The law states that where there is an applicable collective agreement in place, the applicant shall be informed of the relevant pay provisions of the collective agreement which are applicable to the position in respect of which there is an application for employment. According to the website of the DIER, a prospective employee can request a clear written breakdown of the wage structure related to the position, including fixed and variable components, as part of their right to transparent information.

This law is silent as to the form which the information must take. As to when such information is to be supplied, the law specifies that it is to be provided to the applicant “before” the commencement of their employment.

With respect to the Equal Pay (Transparency and Reporting) Regulations, the latter incorporate obligations related to salary transparency for job applicants. Regulation 4 stipulates that applicants for employment have the right to receive, from prospective employers, information about:

• The initial pay or its range to be attributed for the position concerned
• Where applicable, any relevant provisions of the collective agreement applied by the employer in relation to a particular position.

Employers shall ensure that any information provided to applicants for employment is made available in a format that is accessible to persons with disabilities having due regard to their particular needs. Information shall be provided in a manner so as to ensure an informed and transparent negotiation on pay, prior to the conclusion of the recruitment process.

Is there a requirement to make information on pay, pay structure, or grading available to all employees or employee representative bodies without request? If so, what type of information must be made available?

Regulation 5 of the Equal Pay (Transparency and Reporting) Regulations stipulates that employers shall adopt and keep written policies or criteria establishing the objective and gender-neutral criteria used to determine workers’ pay, pay levels and pay progression. Employers have the legal obligation to keep this information accessible to workers at all times. As stated earlier, pay structures are agreed with employee representatives where the latter exist. That said, in terms of regulation 5, the obligation to keep policies or criteria accessible does not extend to employee representatives.

The Regulations state that employers employing fewer than 50 employees shall be exempt from the requirements above in relation to pay progression. Employers employing 25 or more employees remain obliged to internally document at employer level, the criteria used to determine workers’ pay, pay levels and pay progression. That said, it is made clear that all employers, irrespective of number of employees, are bound by the obligations imposed by the Regulations.

If not a legal entitlement, is it nonetheless common practice to make information on pay, pay structure, or grading system available to all staff or to specific groups/levels of staff, or not at all?

It is a legal entitlement as stated in the previous answer.  

Is it common to require non-disclosure clauses with employees relating to their pay or is this considered unlawful in your jurisdiction?

It is common to have contractual provisions laying down that all aspects of remuneration shall be confidential information and are not to be divulged by the employee. However, in view of the introduction of the Equal Pay (Transparency and Reporting) Regulations, it is now expressly stipulated that workers shall not be prevented from disclosing their pay to the relevant authorities or to the employees’ representatives or the chosen union for the purpose of enforcement of said Regulations.

Individual claims to information on pay of the opposite sex?

Do individual employees have a claim to information regarding their pay and that of co-workers of the opposite sex performing the same work or work of equal value? If so, are there any restrictions to such individual information claims?

By virtue of the first law partially implementing the EU Directive, that is the Transparent and Predictable Working Conditions Regulations (S.L.452.126), all employees have a right to request their individual pay level and the pay levels for categories of employees performing the same work as them irrespective of gender. Employees have no restrictions imposed on them when asking for this information provided that they are asking for the information of a person in the same position as themselves, that is, performing the same work as them.

Regulation 6 of the Equal Pay (Transparency and Reporting) Regulations reaffirms the principle that employees have the right to request and receive, within 8 days, information in writing on the individual pay level and the average pay levels broken down by sex for categories of workers performing the same work as them or work of equal value to theirs. Requests made during 2026 shall only relate to pay relative to the year 2026.

What is the role of employee representative bodies when it comes to enforcing equal pay claims of individual employees?

The Equal Pay (Transparency and Reporting) Regulations state that where the employer fails to provide the information requested under Regulation 6 to the employee within 8 days as stated, where there is an employee representative, the representative may within 12 days from the expiry of the 8 days, submit a request for the same information on behalf of the worker. If the employer does not comply, the employee or the representative may involve the Equality Body. Employee Representatives have a right to request further information if what is supplied is not complete or is inaccurate.

It must be noted that employee representatives are gatekeepers for sensitive/identifiable pay data since where the disclosure of pay information would allow identification of individual employees, access must be restricted to workers’ representatives and competent regulatory or supervisory authorities.

Regulation 13 of the Regulations holds that it is unlawful to victimise any worker and any employee representative for having exercised their rights at law or for having participated in proceedings for redress on grounds of an alleged breach of the same Regulations. Regulation17 (3) lays down the support one can have whenever a claim to enforce rights is made. Indeed, the law says that nothing shall prevent any association, the Equality Body, employees’ representatives or other legal entity having a legitimate interest in ensuring that these regulations are complied with, to engage  itself either on behalf of, or in support of the worker, with his approval, in any judicial or administrative procedure which is provided for the enforcement of obligations under these Regulations.

 Besides the Equal Pay (Transparency and Reporting) Regulations, according to the Transparent and Predictable Working Conditions Regulations (S.L.452.126) which transposed parts of the EU Directive last year, it shall be unlawful to victimise, to subject any worker, or any workers’ representative to any adverse treatment or for any worker, or  any  workers’  representative to suffer any adverse consequences resulting from a complaint lodged with the employer or resulting from any proceedings initiated with the aim of enforcing compliance with the rights granted by the same regulations. This is interpreted to mean that employee representatives do have a role to play when it comes to enforcement. Moreover, in the Equal Treatment in Employment Regulations (S.L.452.95), which address equality and non-discrimination on specific grounds, states, in Regulation 11 thereof, that nothing shall prevent any association, organisation or other legal entity, having a legitimate interest in ensuring that the law is complied with, to engage itself either on behalf of or in support of the complainant, with his or her approval, in any judicial or administrative procedure which is provided for the enforcement of obligations. Indeed, in Malta, employee representative bodies, such as unions, are empowered to act on behalf of workers in legal or administrative proceedings, one of the many roles they play. In light of this, they do have power to act on behalf of employees in the event that there is a dispute regarding equal pay claims.

What are the legal consequences where an employee successfully brings a claim for equal pay or gender-based pay discrimination?

The Equal Pay (Transparency and Reporting) Regulations lay down specific legal consequences where an employee seeks redress in the basis of equal pay and gender-based pay discrimination. Indeed, individuals who have sustained any loss in pay as a result of any breach of any right or obligation in terms of the Regulations may institute a case before the Industrial Tribunal. If successful, they are legally entitled to obtain full payment of any lost pay together with compensation. Payment of lost pay also includes full recovery of back pay and related bonuses in kind. Additionally, the compensation paid must be real and effective and must cover compensation for lost opportunities, non-material damage and any damage caused by other relevant factors which may include intersectional discrimination. Extra damages beyond lost pay are only awarded where discrimination was wilful and vexatious.

Once a worker establishes facts suggesting discrimination, the burden shifts to the employer to prove there was none. If the employer hasn’t met pay transparency obligations, that burden applies automatically, unless the breach was minor and unintentional. Claims before the Industrial Tribunal must be brought within 3 years from when the worker knew (or reasonably should have known) of the breach. Workers can pursue claims even after their employment has ended. Unions, the Equality Body, or other interested organisations can also act on a worker’s behalf (with their consent). The Monitoring Body can investigate and make recommendations but cannot represent workers directly in court.

If a worker or interested party has prima facie evidence of an equal pay breach based on gender, they can ask the Tribunal for an interim order, without affecting any other available remedies. The Tribunal may order the employer to stop the alleged infringement and/or take specific measures to ensure equal pay compliance. The process is swift: a hearing must be scheduled within 15 days of filing, and the Tribunal must decide within 20 working days.

Any decision by the Industrial Tribunal can be appealed before the Court of Appeal.

Besides the redress above, the Regulations give rise to a criminal liability in that they stipulate that individuals who are in contravention of any regulation are guilty of an offence and shall on conviction, be liable to a fine (multa) of not less than 2,500 Euro and not more than 5,000 Euro. The punishment is increased to a fine (multa) of not less than 5,000 Euro and not more than 7,500 Euro where the offence consists of or is connected with a breach of the principle of equal pay for equal work or work of equal value on the basis of gender and intersectional discrimination. The Regulations state that the Court shall impose a more severe punishment if the offence constitutes a repeated infringement.

Besides the Equal Pay (Transparency and Reporting) Regulations, the general employment law, that is, Chapter 452, holds that whenever an employee feels that the principle of equal pay for equal work or work of equal value is being breached in his regard, he may institute a case before the Industrial      Tribunal within four months from the alleged breach. The Industrial Tribunal shall hear such complaints and carry out any investigations as it shall deem fit. If the Industrial Tribunal is satisfied that the complaint is justified, it may take such measures as it may deem fit including the cancellation of any contract of service or of any clause in a contract or in a collective agreement which is discriminatory and shall order the payment of compensation for loss and damage sustained by the aggrieved party as a consequence of the breach. Any action taken by a complainant is without prejudice to any further action that such complainant may be entitled to take under any other applicable law and shall also be without          prejudice to any other action to which the respondent may be subject in accordance with any other applicable law.

In the case of the Equal Treatment in Employment Regulations (S.L.452.95), the principle of equal pay for equal work or work of equal value is linked to the specific ground of sex. That said, the legal redress is the same as that of the general law referred to in the previous paragraph. A person claiming to have been subjected to discriminatory treatment, whether direct or indirect, in relation to his employment may, within four months of the alleged breach, refer the matter to the Industrial Tribunal for redress in terms of the Employment and Industrial Relations Act. This action does not preclude the employee to take any other action in terms of Maltese law, such as a civil action for damages. Differently from the main Act, however, these regulations specify that besides the Industrial Tribunal and civil case for damages, there is criminal liability imposed on anyone who breaches the equality rules. Indeed, it is stated that any person contravening the provisions of the regulations shall be guilty of an offence and shall, on conviction, be liable to a fine (multa) not exceeding (2,329.37 EUR) or to imprisonment for a period not exceeding six months, or to both such fine and imprisonment.

With respect to the law which had partially implemented the Pay Transparency Directive last August 2025, that is, the Transparent and Predictable Working Conditions Regulations (S.L.452.126), workers who consider that they have been dismissed, or have been subject to measures with equivalent effect, on the grounds that they have exercised the rights provided for in the regulations, may institute an action on the basis of unjustified dismissal in terms of the primary Act. Similarly to S.L.452.95, any breach of the provisions of these regulations gives rise to a criminal offence and the alleged perpetrator shall, on conviction, be liable to a fine (multa) of not less than 450 EUR.

National legislation transposing the EU’s Pay Transparency Directive

What is the status of the Pay Transparency Directive transposition in your jurisdiction?

In Malta, the Directive was initially partially implemented by means of Ian amendment to the Transparent and Predictable Working Conditions Regulations, specifically through Legal Notice 112 of 2025, which added a new Regulation 5A. This entered into force on the 27 August 2025. Key changes were essentially the right of the job applicant to know the initial pay or its range before commencement of the employment and the right of every employee to request pay data.

Since the 5^th June 2026, the Directive has now been fully transposed by means of the Equal Pay (Transparency and Reporting) Regulations through Legal Notice 173 of 2026 (S.L.452.172).

If no draft implementing law is available yet, when do you expect the Pay Transparency Directive to be implemented in your jurisdiction?

As stated, the Directive has now been fully transposed into Maltese law.    

If the Pay Transparency Directive has already been (partially) transposed in your jurisdiction: what are the key features of the transposing national legislation?

The Directive has now been fully transposed into Maltese law. The Regulations implement all the provisions of the EU Pay Transparency Directive. The Regulations expressly define the value of equal pay for equal work or work of equal value, prescribe pay transparency mechanisms and obligations prior and during employment, impose reporting obligations on employers, establish and appoint the Monitoring Body for coordinating and supporting the implementation of measures under these Regulations, and provide for remedies and claims which any aggrieved employees may resort to in the case of breach of these Regulations.

Based on the preparations for the transposition of the Pay Transparency Directive or existing legislative drafts, are there any particular noteworthy expectations/predictions regarding the transposition of the Pay Transparency Directive in your jurisdiction (eg, “gold-plating” of the Directive’s requirements)?

Whenever the Maltese legislator transposed EU Directives in the employment and social policy field, there has always been a tendency that the legislator remains, as far as possible, faithful to the text of the EU Directive involved. In this case, although the finalised legislation largely transposes most of the elements of the Directive in the same way as the Directive itself, there are instances where it deviates from the minimum standards in several respects:

1. Maltese Law gives employers eight days to respond to workers’ right-to-information requests, considerably shorter than the two-month floor set by the Directive, with escalation to a workers’ representative or union after 12 days and ultimately escalation to the Equality Body.
2. Although the Directive exempts employers with fewer than 50 workers from the obligation related to the pay progression when it comes to the criteria that are used to determine workers’ pay, pay levels and pay progression, at Maltese Law, employers with 25 or more workers must still internally document the criteria used to determine workers’ pay, pay levels and pay progression. This is thus a domestic administrative obligation.
3. Provision has been made with respect to the issue of comparability as determined by a single source where such exists, in relation to the public service. Bodies falling within the public service (any ministries and government departments appointed as the employer of public officers within the public service by the Public Service Commission), shall be treated as one single source. Other public sector entities, authorities, corporations, agencies or other bodies shall each individually constitute a separate single source notwithstanding that such entities fall within the remit of the public sector.

What type of sanctions do you consider likely to be introduced as part of the implementation of the Pay Transparency Directive in your jurisdiction?

The Directive has now been fully transposed into Maltese law, and it includes forms of redress, as well as criminal sanctions. Individuals who have sustained any loss in pay as a result of any breach of any right or obligation in terms of the Regulations may institute a case before the Industrial Tribunal. If successful, they are legally entitled to obtain full payment of any lost pay together with compensation. Moreover, criminal liability may be imposed where a person fails to comply with any mandatory provision/s of the new rules.