Malta Implements the Pay Transparency Directive: What Employers Need to Know

Author: Pamela Dingli

Malta has officially implemented the EU Pay Transparency Directive through the Equal Pay (Transparency and Reporting) Regulations, LN 173 of 2026. The new rules introduce significant obligations for employers relating to the equal pay, salary transparency, recruitment practices, worker information rights, gender pay gap reporting and enforcement measures.

The regulations apply across both the public and private sectors and will require many employers to review their pay structures, recruitment process, internal policies and reporting frameworks.

But what are the main elements of this new law? Below, we outline the key requirements employers should be aware of.

Scope of Malta’s Pay Transparency Regulations and Equal Pay Requirements

• Applicability: Applies to all public and private sector employers and employees under Maltese law, including job applicants in certain instances.
• Equal Pay: Employers must maintain pay structures ensuring equal pay for equal work or work of equal value based on objective, gender-neutral, and bias-free criteria.
• Permitted Variations: Collective agreements can still include different salary scales or increments linked to seniority (with a maximum reached within a specific timeframe). Employers can also vary pay based on objective criteria like performance and competence.
• Policy Documentation: Employers must maintain accessible, written pay policies. Those with fewer than 50 employees are exempt from the pay progression policy requirement, but employers with 25 or more employees must still internally document their pay criteria.

New Pay Transparency Rights of Job Applicants

• Pay Transparency: Applicants have the right to receive information regarding initial pay or its range based on gender-neutral criteria.
• Privacy: Employers are strictly prohibited from asking applicants about their current or previous salary history.
• Recruitment: Job vacancy notices, titles, and overall recruitment processes must be gender-neutral and non-discriminatory.

Employee Rights to Pay Information and Salary Disclosure

• Right to Request Data: Employees can request written data regarding their individual pay level and the average pay levels broken down by sex for comparable roles.
• Response Timelines: Employers must provide this data within 8 days. If they fail to do so, an employee representative can step in within 12 days. If non-compliance continues, information can be sought via the Equality Body. Failure to provide accurate data within 45 days of the initial request is considered as a criminal offence.
• Annual Notification: Employers must inform employees annually of their right to request this information.
• Pay Secrecy Bans: Employees cannot be prevented from disclosing their pay to authorities, representatives, or unions to enforce their rights.
• Data Retention: Employers must retain relevant pay data for at least 5 years, and employees must only use received data to enforce equal pay rights.

Gender Pay Gap Reporting Obligations and Pay Assessments

• Comparability Scope: Assessments can extend beyond a single employer to a “single source” establishing pay conditions if the entities are controlled by the same persons and share essentially the same economic activity.
• Reporting Thresholds: Employers with 100 or more employees must submit detailed Pay Gap Reports within 14 working days from the end of the relevant yearly period, phase-in schedules vary by company size:
  • 250+ employees: Annually, starting June 7, 2027.
  • 150–249 employees: Every 3 years, starting June 7, 2027.
  • 100–149 employees: Every 3 years, starting June 7, 2031.
  • Fewer than 100 employees: Voluntary reporting.
• Joint Pay Assessments: If unjustified gender pay gaps are found, subject employers must conduct and share a joint pay assessment with employee representatives and submit it to the Monitoring Body within 10 working days. Disagreements can be referred to an Industrial Tribunal via conciliation.

Redress, Enforcement, and Liability

• Victimization Protections: It is illegal to victimize any worker or representative for exercising their rights under these regulations.
• Tribunal Redress: Victims of pay breaches can apply to the Industrial Tribunal for full back pay plus compensation for lost opportunities, non-material damages, and intersectional discrimination.
• Statute of Limitations: Aside from criminal action which may be instituted in terms of the law, unlike the standard 4-month rule under EIRA, employees have 3 years to bring a claim before the Industrial Tribunal, starting from the date they knew (or reasonably should have known) of the breach.
• Interim Orders: Employees can request the Tribunal to issue an interim order if there is prima facie evidence of a gender-based equal pay breach.
• Criminal Fines: Standard contraventions result in a fine (multa) between €2,500 and €5,000.
  • Aggravated offences involving gender and intersectional discrimination carry a fine between €5,000 and €7,000.
  • Repeated offences carry more severe punishments.
• Awareness: Employers have a formal duty to bring these regulations and any related internal measures to the attention of their workforce.

What Should Employers Do Now?

Employers should begin reviewing their remuneration frameworks, recruitment procedures and internal HR policies to ensure compliance with Malta’s new pay transparency requirements. Organisations employing 100 or more employees should also assess their readiness for future gender pay gap reporting obligations and establish processes for collecting and maintaining and retaining the necessary pay data.

Although certain reporting requirement will be phased in over time, employers should not delay preparations. Early preparation will be essential to minimise compliance risks and demonstrate a commitment to pay equity and workplace transparency.