The transposition of the EU Pay Transparency Directive (Directive (EU) 2023/970) into Maltese law, now formalised through the Equal Pay (Transparency and Reporting) Regulations, LN 173 of 2026, represents a substantive recalibration of employer obligations in Malta.
The new framework reinforces the principle of equal pay for equal work or work of equal value between men and women by introducing clearer transparency requirements, more formal reporting duties, and stronger enforcement mechanisms. Although Malta has long recognised the right to equal pay under the Employment and Industrial Relations Act, these Regulations move employers toward a more structured, proactive, and evidence-based compliance model.
Expanded Definition of Work of Equal Value
The 2026 regulations refine the comparator test by requiring employers to assess “work of equal value” using objective, gender‑neutral criteria, including:
complexity of duties
level of responsibility
physical or mental effort
working conditions
This expanded definition obliges employers to conduct systematic job evaluations rather than relying on historical or informal role classifications.
Mandatory Pay Transparency Prior to Recruitment
Employers must now disclose the initial base pay or pay range to job applicants before concluding the recruitment process. This obligation:
prohibits requesting salary history
requires gender‑neutral vacancy notices
mandates transparent selection criteria
For organisations accustomed to flexible negotiation, this represents a significant procedural shift.
Employee Right to Pay Information
Employees may request:
their individual pay level
average pay levels by gender for comparable roles
Employers must respond within 8 days, with failure to comply escalating to administrative penalties and, after 45 days, potential criminal liability. This creates a legally enforceable right to pay information unprecedented in Maltese employment law.
Pay Structure Documentation and Reporting
The regulations introduce tiered obligations:
Employers with 25 to 49 employees are not yet subject to reporting obligations, but must document their internal pay‑setting criteria, including base pay, progression, and variable pay, as required under the Equal Pay (Transparency and Reporting) Regulations, 2026
Employers with 100 to 149 employees will become subject to gender pay gap reporting at a later stage, in line with the phased implementation timeline established under the Regulations.
Employers with 150 employees or more fall within the first reporting phase and will be required to submit gender pay gap reports at the earliest stage of the phased implementation set out in the Regulations.
This goes beyond the EU Directive, placing Malta among the more stringent jurisdictions in terms of employer reporting duties.
Increased Transparency
One of the most immediate changes affects the recruitment process.
Job applicants now have the right to receive information about the initial pay level or salary range applicable to a position before employment commences. Employers must provide sufficient information to allow candidates to make informed decisions and negotiate effectively.
Equally significant is the prohibition on employers asking applicants about their salary history. This measure seeks to prevent the perpetuation of historical pay inequalities, particularly those arising from gender‑based disparities in previous employment.
As a result, organisations may need to review recruitment procedures, job advertisements, interview practices, and onboarding documentation to ensure compliance with the new transparency requirements.
What Should Employers in Malta Know?
While the reporting obligations will be introduced gradually, most of the transparency requirements are already applicable. Employers should therefore take immediate steps to review their remuneration practices and assess whether their current policies, procedures, and documentation are aligned with the new rules.
Practical steps for employers may include:
Evaluating current remuneration structures
Reviewing job classification methodologies
Conducting internal pay gap analyses
Establishing objective and gender‑neutral pay criteria
Updating recruitment processes and documentation
Preparing internal policies on pay progression and transparency
Ensuring appropriate record‑keeping and governance arrangements
Employers that act early will be better placed to identify and address potential compliance gaps, reduce legal and reputational risk, and build greater confidence among employees by demonstrating a clear commitment to fair, transparent, and well-governed pay practices.
Looking Ahead
The 2026 Regulations represent the commencement of a sustained transition towards more formalised pay governance. As enforcement mechanisms develop and reporting obligations become embedded in standard employment practice, organisations will be required to maintain ongoing review and refinement of:
job evaluation frameworks
remuneration structures
recruitment and selection procedures
At AIMS International Malta, we assist organisations in navigating evolving compliance obligations and translating regulatory change into a strategic advantage. Our services include comprehensive executive search, talent acquisition and recruitment support, specialist guidance on employment contracts and remuneration practices, and strategic advice aimed at strengthening transparency, fairness, and governance within the workplace.
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