Malta Begins Transposition of the EU Pay Transparency Directive

The EU Pay Transparency Directive has quickly become one of the most widely discussed legislative developments in employment law. With its transposition deadline of 7th June 2026, this Directive is drawing considerable attention from employers, employees, HR professionals and legal practitioners alike.

While the Directive introduces new rights and obligations aimed at strengthening pay transparency and addressing the gender pay gap, the underlying principle of equal pay for work of equal value is not new to Maltese law. This principle has long been established under Article 27 of the Employment and Industrial Relations Act, Chapter 452 of the Laws of Malta, which requires employers to provide equal remuneration for work of equal value.

Malta has taken its first formal step towards transposing the Directive with the publication of Legal Notice 112 of 2025 on 27th June 2025. This Legal Notice, which comes into force on 27th August 2025, introduces significant amendments that affect both the pre-employment stage and the ongoing employment relationship.

One of the main amendments introduced in virtue of this Legal Notice aims to empower individuals seeking employment and those being considered for engagement with a prospective employer. From 27th August 2025, applicants for employment are entitled to receive from their prospective employer, prior to the commencement of their employment, the following information:
(a) the initial pay, or its range, to be attributed to the position in question and;
(b) where applicable, the relevant pay provisions of the collective agreement as applied by the employer in relation to the position.

In addition, workers will soon enjoy the right to request, in writing, from the employer at any time during their employment their individual pay level and the pay levels for categories of workers performing the same work as them. The employer must provide such information within a reasonable period of time not exceeding two months from the request. Pay level is defined as the gross annual pay and the corresponding gross hourly pay. This definition is directly aligned with that provided in the EU Pay Transparency Directive.

It is worth noting that the Legal Notice introduces a narrower scope than that of the Directive regarding comparative pay information. While the Directive entitles employees to information on the pay levels of those categories of workers who not only perform equivalent work but also work of equal value, Legal Notice 112 of 2025 limits this to those performing the same work.

The introduction of Legal Notice 112 of 2025 should serve as a stark reminder to employers that the implementation of the EU Pay Transparency Directive is fast approaching. Employers should therefore begin to prepare without delay to ensure full compliance with the forthcoming obligations.