With Legal Notice No. 173 of 2026, Malta is one of the first EU countries to transpose Directive (EU) 2023/970. With the Equal Pay Transparency and Reporting Regulations, the Government aims to foster the right to equal remuneration between genders. Moreover, salary equality is enhanced among workers performing work of equal value. The present article outlines the main contents of Malta’s transposition of the European normative.
Information rights during and after recruitment
The first outstanding provision of the Regulations concerns applicants’ right to receive information before the recruiting process ends. More specifically, applicants for a job must receive information regarding the starting pay or pay range for that specific position. In addition to basic wages, information must concern variable remuneration, whether paid in cash or in kind. In case a collective agreement applies, employers must provide its relevant provisions as well. Furthermore, employers have the obligation to ensure that job adverts and titles are gender neutral. This way, the rights to equal pay and pay transparency are enhanced since the earliest stages of the recruiting process.
Additional rights apply after the recruiting process. First, employees can ask their employers for information concerning their own salary level. Such information must be provided timely, within eight days from its request and in writing. Information must be classified according to gender and illustrate the average remuneration applying to workers performing work of equal value. Every year, employers will inform employees of their right to claim the abovementioned information and the procedure to obtain it.
It is important to underline that employers can still pay different salaries between male and female workers. However, this distinction must derive from gender neutral and objective criteria, such as better performance or higher competence.
Reporting obligations
Legal Notice No. 173 of 2026 also establishes employers’ reporting obligations. Reports must contain, among other information, the following data, to ensure full compliance with Directive (EU) 2023/970:
- The gender pay gap, in its different components;
- The median gender pay gap, in its different components;
- The proportion of female and male workers in each quartile pay;
- The gender pay gap by categories of workers, according to basic salary or wage components.
By June 7, 2027, employers running companies with 250 workers or more must elaborate their first report, concerning 2026. They will have to submit one report per year, covering the previous calendar year. Smaller companies, instead, will have to report less frequently, as listed below:
- Firms employing between 150 and 249 workers will report every three years, starting no later than on June 7, 2027.
- Firms employing between 100 and 149 workers will report every three years, starting no later than on June 7, 2031.
- For firms with less than 100 workers, reporting is voluntary, but not compulsory.
In any case, companies must publish reports within 14 working days from the end of a reporting period. In the event that reports show a gender pay gap over 5%, employers must take effective measures promptly. Concretely, within six months, they must either justify the issue according to objective criteria or solve it completely.
One of the authorities entrusted to monitor the enforcement of reporting obligations is the Department for Industrial and Employment Relations. Specifically, it will collect and publish reports in a way that allows comparisons among companies, sectors and regions throughout Malta.
Conclusion
Malta’s implementation of Directive (EU) 2023/970 marks a significant step towards greater pay transparency and gender pay equality. Employees who experience pay discrimination may report their case before the Industrial Tribunal and seek compensation, bonuses or benefits. Moreover, breaches of the Regulations constitute criminal offences and may result in fines of up to € 7,000 for employers. Therefore, companies in Malta should assess their current procedures in order to reduce compliance risks and support a more transparent and equitable workplace.