Malta met the EU transposition deadline and implemented Directive (EU) 2023/970 through Legal Notice 173 of 2026 - the Equal Pay (Transparency and Reporting) Regulations, 2026, (the “Regulations”), bringing pay transparency and enforcement into sharper focus for employers across the public and private sectors. This new framework represents a shift in outlook on pay governance, and that employers should treat governance and HR as a priority. In brief, what should employers be aware of?
Pay transparency starts before employment
The new regime starts from recruitment whereby applicants are provided with information on the initial pay or pay range for the role and, where relevant, the applicable collective agreement provisions before the commencement of employment. Employers may not ask applicants about their pay history during current or previous employment, and recruitment processes must be gender-neutral, including job vacancy notices and job titles.
Pay structures will be tested, not just explained
The Regulations go beyond disclosure. Employers should ensure that pay structures support equal pay for equal work or work of equal value, using objective, gender-neutral and bias-free criteria. Employers should also adopt and maintain written policies or criteria on pay setting, pay levels and pay progression, with such materials being accessible to workers.
Smaller employers get some relief, but not a free pass. Under the Regulations, employers with fewer than 50 workers are exempt from the pay-progression documentation requirements. However, the core equal pay principle remains, and employers with 25 or more workers are still required to have pay structures and internally document how pay, pay levels, and progression are decided, while employers with fewer than 25 workers remain fully bound by the equal-pay principles for equal work or work of equal value.
Information requests will test response processes
Workers may request written information on their own pay level and the average pay levels, broken down by sex, for categories of workers performing the same work or work of equal value. Malta has gone further than the Directive in some practical areas: employers should respond to worker information requests in writing within 8 days, (rather than 2 months as provided in the Directive), and relevant data must be kept for at least 5 years. If employers do not provide a response in writing, or said response is inaccurate or incomplete, the issue can escalate through employee representatives, trade unions, or to the equality body, the National Commission for the Promotion of Equality (NCPE). Employers must also inform workers annually of these rights and the steps needed to exercise them.
The practical takeaway is straightforward. Businesses need a clear workflow for responding to requests, validating data, protecting confidentiality and issuing consistent responses quickly.
Monitoring will be active. Coordination will matter.
As the designated Monitoring Body, the Department of Industrial and Employment Relations (DIER) is tasked with monitoring employer compliance, reviewing Pay Gap Reports and joint pay assessments, carrying out inspections, requesting information, and publishing annual reports on implementation.
The Regulations provide for coordination between the DIER and the NCPE in order to ensure wider implementation. Where reporting results in an unjustified average pay difference of at least 5% in the average pay level between male and female workers in any category of workers, and that gap is not remedied within 6 months, employers must carry out a joint pay assessment in consultation with employee representatives. Such assessments should examine reasons for pay gaps and identify measures to address and prevent unjustified differences.
Once reporting, monitoring, and employee rights begin to interact, employers who may have gaps in their data, grading, and pay structures or governance frameworks may face increased scrutiny and pressure to act quickly and publicly.
What employers should do now
With the Regulations now in force, employers should be prepared to respond to pay information requests received within the time constraints. To do so effectively, employers need to have their house in order. The smart move is to act now, before issues surface or deadlines begin to bite.
How can we help?
Our multi-disciplinary teams and experts can help employers turn pay transparency obligations into a practical, workable plan. From job evaluation and pay-structure reviews to response protocols, pay governance, and reporting readiness, we support you in identifying what matters, prioritising what comes next, and preparing with confidence. Get in touch to discuss how we can help you move from compliance to readiness.
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