The New Equal Pay Regulations 2026 Published: Implementing The EU Pay Transparency Directive In Malta

The introduction of the EU Pay Transparency Directive marked a significant shift in how organisations across the European Union approach pay transparency, workplace equality and gender pay gap reporting. Malta has now implemented the Directive through the new Equal Pay (Transparency and Reporting) Regulations 2026, published on 5 June 2026. Businesses are entering a new phase of employment law compliance in Malta, one that is more data-driven, structured and accountable than ever before.

While equal pay obligations are not new, the way they are enforced is changing. Employers can no longer take a reactive approach. Instead, they will be expected to demonstrate that their pay decisions are objective, transparent and free from bias.

At Mamo TCV Advocates, we are working closely with clients to navigate pay transparency compliance in Malta and to support them in implementing the requirements, now that the Regulations are in force.

A Shift from Principle to Practice in Pay Transparency

The Regulations strengthen the principle of equal pay for equal work or work of equal value, which already existed under Maltese law. However, their real impact lies in how they transform this principle into practical obligations under EU and Maltese employment law.

Under the new Regulations, employers need to:

• Explain how pay levels are determined;
• Justify differences in pay using objective and gender-neutral criteria;
• Maintain structured documentation supporting pay decisions;
• Provide clear salary information to both job applicants and employees.

A significant shift has also been made from the traditional strict approach under the equal pay provision of the Employment and Industrial Relations Act. Under this provision, differences in pay were only allowed where different salary scales were in place. By contrast, the new Regulations permit pay differentials that can be justified by reference to objective, gender-neutral and bias-free criteria, such as performance and competence.

Why Pay Transparency Matters for Employers in Malta

For many organisations, the challenge is not necessarily intentional discrimination but rather legacy systems and undocumented practices that are difficult to justify under scrutiny.

The new pay transparency rules in Malta introduce several key risk areas:

• Unexplained gender pay gaps across comparable roles;
• Inconsistent pay-setting practices within a company, and across companies within the same group where pay conditions are determined by a common single source;
• Lack of formal pay policies or documentation outlining the objective and gender-neutral criteria used to determine pay structures;
• Limited visibility on pay gap data and reporting requirements.

Addressing these issues early is crucial. Employers who proactively review their pay structures and policies will be better positioned to demonstrate compliance and avoid regulatory exposure.

The Regulations introduce gender pay gap reporting obligations for employers with 100 or more workers, alongside strict timelines for responding to employee information requests. Employers should also be aware that where pay gap reporting reveals a gender pay gap of 5% or more in any category of workers which cannot be justified by objective, gender-neutral criteria and which has not been rectified within six months from report submission, a joint pay assessment must be carried out in cooperation with their employees’ representatives.

New Employee Rights Under Pay Transparency Laws

Applicants have the right to receive information about the initial pay or its range before concluding the recruitment process, strengthening transparency from the outset. During employment, workers may also request information on their individual pay level and the sex- disaggregated average levels for categories of workers performing the same work or work of equal value within their organisation. Employers must respond to such requests in writing within a specific time frame.

Importantly, in pay discrimination claims, the burden of proof shifts to the employer where an employer has not complied with its pay transparency obligations. This represents a significant change from the traditional position and underscores the importance of maintaining proper documentation and transparent pay practices.

Beyond Compliance: A Strategic Opportunity for Employers

Although the Directive introduces additional compliance requirements, it also provides an opportunity for organisations to reassess their approach to pay transparency and workplace governance.

Transparent and well-structured pay systems can:

• Enhance employee trust and engagement;
• Support diversity, equity and inclusion objectives;
• Reduce the risk of employment disputes and litigation;
• Strengthen employer branding in a competitive labour market.

Organisations that approach EU pay transparency implementation strategically, rather than purely as a regulatory exercise, are likely to gain a long-term competitive advantage.

Taking a Practical Approach to Pay Transparency Compliance

Employers need to:

• Reviewing current pay structures and pay frameworks;
• Identifying gender pay gap risks;
• Defining objective, gender-neutral criteria for pay and progression;
• Aligning recruitment practices with salary transparency requirements;
• Preparing for pay gap reporting obligations in Malta..

How Mamo TCV Advocates Can Assist Organisations

At Mamo TCV Advocates, we support organisations in translating employment law requirements into practical, effective solutions tailored to their operational realities.

Our employment law advisory services in Malta focus on:

• Identifying legal and operational risks;
• Developing compliant pay transparency policies;
• Supporting internal implementation and governance;
• Advising on employee communications and dispute avoidance, and handling any disputes which may arise.

Non-compliance with the Regulations may expose employers to financial liabilities, including payment for the lost pay and compensation, as well as criminal sanctions if convicted. Organisations should therefore ensure that adequate measures are in place well in advance of any applicable reporting deadlines.

How Mamo TCV Advocates Can Support Employees

Mamo TCV Advocates also represents employees in equal pay claims, including in proceedings before the Industrial Tribunal. Our team has successfully assisted employees in enforcing their rights and obtaining redress where the principle of equal pay for equal work or work of equal value has been breached.

Learn More About Pay Transparency in Malta

For a detailed breakdown of the EU Pay Transparency Directive, the Maltese implementing Regulations, key timelines and practical compliance steps, you can download our full guide:

[Download our Pay Transparency Brochure]

If you would like to discuss how pay transparency laws in Malta may affect your organisation, please get in touch with our team.