Malta Begins Implementing EU Pay Transparency Directive
What Employers Need to Know
On 27 June 2025, Malta published Legal Notice 112 of 2025. This marks the country’s first step in implementing the EU Pay Transparency Directive (EU 2023/970). The new rules aim to improve workplace fairness by promoting pay transparency and equality.
Beginning 27 August 2025, employers must share salary ranges with job applicants. This must happen before a job offer is made. Additionally, employers are banned from asking about a candidate’s past salary.
Employees will also gain the right to request pay information. Specifically, they can ask for their own salary and the average pay of colleagues doing the same work. Employers must respond within two months. However, unlike the EU Directive, Malta’s version currently limits this to “same work,” not “work of equal value.”
Read about Sweden´s Implementation Plan Here
Looking ahead, full implementation of the Directive is due by 7 June 2026. After that, gender pay gap reporting becomes mandatory. For example, companies with 150 or more employees must submit their first reports by 7 June 2027. Meanwhile, businesses with 100–149 employees follow in 2031. These reports must include pay gaps, bonus data, and gender distribution across pay levels.
Furthermore, if a 5% or greater pay gap exists between categories of workers and can’t be justified, a joint pay assessment will be required. This must involve employee representatives.
To prepare, employers should review their hiring processes. They must remove pay secrecy clauses and set clear, gender-neutral pay criteria. In addition, HR teams should be ready to handle employee pay requests. Businesses should also start collecting data for future reporting.
In conclusion, these changes aim to close the gender pay gap in Malta. Therefore, employers should act now to stay compliant and promote fairer workplaces.
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