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In June 2026, Malta completed the transposition of Directive (EU) 2023/970 (the “Directive”) through the Equal Pay (Transparency and Reporting) Regulations, 2026 (Legal Notice 173 of 2026). As discussed in our previous articles, the Directive aims to strengthen equal pay for equal work or work of equal value through greater pay transparency and enhanced enforcement mechanisms.
While the 2025 measures introduced certain pay transparency rights, particularly in relation to pay disclosure during recruitment and employee access to pay information, the 2026 Regulations establish a more comprehensive framework for the implementation of the Directive, aimed at identifying, preventing and remedying gender-based pay disparities in the workplace.
While the 2025 measures introduced certain pay transparency rights, particularly in relation to pay disclosure during recruitment and employee access to pay information, the 2026 Regulations establish a more comprehensive framework for the implementation of the Directive, aimed at identifying, preventing and remedying gender-based pay disparities in the workplace.
Work of Equal Value
An important distinction must be made between equal work and work of equal value. The Regulations make it clear that pay comparisons should not be limited to job titles or formal classifications but should instead focus on the substance of the work performed. Employers are therefore required to assess positions using objective and gender-neutral criteria, including factors such as skills, competence, qualifications, effort, responsibility and working conditions. Consequently, two employees performing different roles may still be regarded as carrying out work of equal value, requiring any differences in pay to be objectively justified.Transparency in Recruitment
The Regulations reinforce the transparency measures introduced in 2025 by requiring employers to provide applicants with information regarding the initial pay or pay range applicable to a role before the recruitment process is concluded. Additionally, employers are now also expressly prohibited from asking applicants about their pay history. This measure seeks to prevent historical pay disparities from being carried forward into future employment relationships.
Employee Rights to Pay Information
Employers are required to provide a written response within eight days of receiving a worker's request, setting out the employee's individual pay level and the average pay levels, broken down by sex, for workers performing the same work or work of equal value.Where the information provided is inaccurate or incomplete, employees may request further clarifications and details, to which employers must provide a substantiated reply. The Regulations further require employers to inform workers annually of their right to obtain such information and the procedure for exercising that right.
These measures seek to ensure that employees are not only granted access to pay information but are also able to effectively understand and utilise that information in safeguarding their right to equal pay.
Gender Pay Gap Reporting
One of the most significant additions introduced by the 2026 Regulations is the requirement for certain employers to prepare gender pay gap reports.Employers employing at least 100 workers must report on a range of indicators, including:
• The overall gender pay gap;
• Median gender pay gaps;
• Gender pay gaps relating to bonuses and variable remuneration;
• The proportion of female and male workers receiving variable pay;
• The distribution of female and male workers across pay quartiles.
The reporting framework is phased according to workforce size, with both the frequency of reporting and the date of the first report varying depending on the number of employees engaged by the employer.
Joint Pay Assessment
Where a Pay Gap Report identifies a gender pay gap of at least 5% within a category of workers which cannot be objectively justified and remains unremedied within the prescribed period, the Regulations require the employer to undertake a joint pay assessment. In carrying out this assessment, employers must work together with employee representatives to investigate the causes of the disparity, review existing pay practices and implement corrective measures where necessary.This requirement moves the framework beyond transparency alone, introducing a mechanism aimed at actively identifying and addressing unjustified pay differences.
Stronger Enforcement Mechanisms
Workers who suffer loss as a result of a breach of the equal pay principle may seek redress before the Industrial Tribunal and claim both lost pay and compensation. Perhaps an interesting development is that the Regulations also introduce a shift in the burden of proof in discrimination proceedings. Once a worker establishes facts from which discrimination may be presumed, it becomes the employer's responsibility to demonstrate that no discrimination occurred. This reflects a more protective approach towards employees by reducing the evidential burden traditionally associated with discrimination claims.Moreover, breaches of the Regulations may result in financial penalties ranging from €2,500 to €5,000. Where the infringement relates to a breach of the principle of equal pay for equal work or work of equal value on the basis of gender or intersectional discrimination, the applicable fines increase to between €5,000 and €7,000. In determining the appropriate penalty, the courts may also take into account whether the infringement constitutes a repeated breach.