Malta has introduced the Equal Pay (Transparency and Reporting) Regulations, 2026, published on 5 June 2026, which transpose the EU Pay Transparency Directive into Maltese law.
The new regulations are aimed at strengthening the principle of equal pay for equal work or work of equal value between men and women, through greater pay transparency, reporting obligations and enforcement mechanisms.
Under the regulations, employers are required to ensure that their pay structures are based on objective, gender-neutral criteria. These criteria may include skills, effort, responsibility, working conditions and, where appropriate, other factors relevant to the particular role.
The regulations also introduce important transparency obligations at recruitment stage. Applicants for employment have the right to receive information on the initial pay or pay range for the position, before the recruitment process is concluded. Employers are also prohibited from asking applicants about their pay history during current or previous employment relationships.
Workers are granted a right to request information on their individual pay level and on average pay levels, broken down by sex, for categories of workers performing the same work or work of equal value. Employers are also required to inform workers annually of this right and of the steps to be followed in order to exercise it.
Additional reporting obligations apply to employers with at least 100 workers. Such employers are required to prepare pay gap reports including information on gender pay gaps, including differences in variable or complementary components, median pay gaps, and the proportion of female and male workers in each quartile pay band.
Employers with 250 or more workers must submit their first pay gap report by 7 June 2027 and annually thereafter. Employers with between 150 and 249 workers must also submit their first report by 7 June 2027, and every three years thereafter. Employers with between 100 and 149 workers will be required to submit their first report by 7 June 2031, and every three years thereafter.
Where a pay gap report identifies a difference of at least 5% in average pay levels between female and male workers in any category of workers, and such difference is not justified by objective and gender-neutral criteria and is not remedied within six months, the employer must carry out a joint pay assessment in consultation with employee representatives.
The regulations also introduce protections against victimisation and less favourable treatment for workers and employee representatives who exercise rights under the regulations or participate in proceedings relating to alleged breaches.
Workers who suffer loss of pay as a result of a breach of the principle of equal pay may seek redress before the Industrial Tribunal, including recovery of lost pay and compensation. The regulations also provide for a shift in the burden of proof in certain proceedings relating to alleged pay discrimination.
The Department for Industrial and Employment Relations will act as the Monitoring Body responsible for monitoring and supporting the implementation of the regulations, collecting and reviewing pay gap reports and joint pay assessments, and promoting awareness of equal pay and pay transparency obligations.
Employers should therefore review their pay structures, recruitment practices, pay progression policies, internal documentation and reporting processes to ensure compliance with the new framework.
Our firm can assist employers in preparing compliant pay transparency policies, supporting internal implementation and employee communications, and advising on any disputes which may arise.
