Malta moves towards EU Pay Transparency Directive transposition

The pay equity landscape in Malta 

Malta currently boasts the fifth lowest gender pay gap in the EU (behind Luxembourg, Belgium, Italy, and Romania). Based on the most recent available data, Malta’s pay gap is 5.1%, with the EU average of 12%. The gap is largest in the real estate sector (18.5%), followed by the information and communication sector (15.6%) and financial and insurance activities (14.9%).   

Malta’s relatively low pay gap is supported by its Employment and Industrial Relations Act. Passed in 2002, this law prohibits discrimination based on demographic characteristics, both during an employee’s tenure and during the hiring process. It also establishes the right to equal pay for work of equal value.

However, beyond this Act, Malta has not previously enacted specific pay transparency laws. There are also no gender pay gap reporting requirements in Malta. Such requirements will be established as part of the broader transposition of the EU Directive.

New pay transparency laws in Malta

The recent steps towards EU Pay Transparency Directive transposition in Malta were enacted by Legal Notice 112 of 2025, published on June 27th, 2025. The Legal Notice amends chapter 452 of the Employment and Industrial Relations Act, “Transparent and Predictable Working Conditions,” to include pay transparency measures that benefit job applicants and current employees.

Next steps for EU Pay Transparency Directive transposition in Malta

The changes set in motion by the legal notice, which apply to job candidates and employees, help build a foundation for full EU Directive transposition. Future activity will involve additional measures to benefit current employees and extend pay transparency laws to job seekers. Specifically, employers will be required to provide pay information either before the interview or in the job posting. 

While the Legal Notice gives workers access to a comparison between their work and peers performing the same work, it will also need to allow for the comparison of work of equal value. Employers will additionally need to provide transparency surrounding the criteria that determine pay, and they will be prohibited from asking job candidates about salary history.

Transposition activity in Malta will also need to address all the pay equity aspects of the Directive, including regular pay gap reporting, the right of employees to access pay gap information, and the employer burden of proof in salary disputes. Employers will also be required to keep the gender pay gap below 5%.

Further support with PayAnalytics by beqom

To help employers in Malta and throughout the EU prepare for full implementation of the Directive by June 2026, we’ve created a few resources. We recommend starting with our pocket guide for a quick overview, then reviewing our recently updated EU Directive eGuide, and downloading the checklist as an organizational tool. Our transposition tracker will keep you informed about Directive-related legal changes throughout the EU as they happen.

From the pay transparency perspective, this is the right time for employers to make sure that they have clear pay structures with well-defined criteria and pay ranges for all positions. PayAnalytics by beqom is designed to help you understand your organization’s pay structure and make the necessary changes.

From a pay equity perspective, this is the right time to measure pay gaps and bring them under the 5% threshold set by the Directive. PayAnalytics by beqom simplifies this process, identifying your organization’s pay gaps and recommending tailored raise suggestions based on your workforce and budget needs.