Malta's New Equal Pay Regulations Are Now in Force:
What Employers Need to Know
Malta has officially implemented the Equal Pay (Transparency and Reporting) Regulations, 2026 (L.N. 173 of 2026), fully transposing the EU Pay Transparency Directive into Maltese law.
Unlike many recent legislative changes, these regulations came into force immediately upon publication on 5 June 2026, meaning employers are already expected to comply with the new obligations.
Why This Matters
The regulations aim to strengthen the principle of equal pay for equal work or work of equal value by increasing transparency around remuneration practices and empowering employees with greater access to pay information.
While Malta has one of the lowest gender pay gaps in the European Union, employers must now take proactive steps to ensure their pay structures, recruitment practices, and internal policies can withstand increased scrutiny.
Key Changes Employers Should Be Aware Of
Salary History Questions Are No Longer Permitted
Employers may no longer ask job applicants about their previous salary or remuneration package during the recruitment process. This measure seeks to prevent historical pay disparities from being carried forward into new employment.
Salary Information Must Be Provided During Recruitment
Candidates must be informed of the initial salary or salary range for a position before the recruitment process is concluded. Job advertisements and job titles must also be gender-neutral.
Employees Have a New Right to Pay Information
Employees may now request information regarding:
- Their individual pay level; and
- Average pay levels, broken down by gender, for employees performing the same work or work of equal value.
Importantly, employers must respond within 8 days of receiving a request. Failure to provide a complete and accurate response may ultimately constitute an offence under the regulations.
Written Pay Policies Become Essential
Employers with 50 or more employees must establish objective and gender-neutral criteria governing pay levels and pay progression.
Employers with 25 to 49 employees are not required to implement formal progression policies but must still document the criteria used to determine remuneration.
Mandatory Pay Gap Reporting
Certain employers will be required to submit Gender Pay Gap Reports to the Department for Industrial and Employment Relations (DIER).
Employer Size | First Reporting Deadline | Frequency |
250+ employees | 7 June 2027 | Annually |
150–249 employees | 7 June 2027 | Every 3 years |
100–149 employees | 7 June 2031 | Every 3 years |
Under 100 employees | Voluntary | N/A |
Joint Pay Assessments
Where reporting identifies an unjustified gender pay gap of 5% or more within a worker category that remains unresolved after six months, employers may be required to undertake a formal Joint Pay Assessment together with employee representatives.
Increased Enforcement and Penalties
The regulations introduce stronger enforcement mechanisms, including:
- Reversal of the burden of proof in certain discrimination claims;
- Enhanced compensation rights for employees;
- Administrative fines ranging from €2,500 to €7,000 depending on the nature of the breach; and
Protection against victimisation for employees exercising their rights.
Record Retention Requirements
Employers must retain relevant pay transparency records for at least five years and ensure all information is processed in accordance with GDPR requirements.
What Should Employers Do Now?
Although some reporting obligations will only arise in future years, businesses should begin preparing immediately by:
- Reviewing current remuneration structures;
- Ensuring recruitment procedures are compliant;
- Documenting pay-setting criteria;
- Assessing potential pay disparities;
- Establishing procedures to respond to employee information requests within the required timeframe; and
- Preparing for future reporting obligations where applicable.
How Tri-Mer Services Can Assist
Our team can support your organisation with:
- Pay structure reviews and compliance assessments;
- Development of pay transparency and remuneration policies;
- Pay gap reporting preparation and submission;
- Recruitment compliance reviews;
- Employee information request procedures; and
- HR and management training on the new requirements.
The new regulations represent a significant shift in employment compliance requirements across Malta. Taking action now can help businesses reduce risk, improve transparency, and ensure they are prepared for future reporting obligations.
For further guidance on how these changes may impact your business, contact the team at Tri-Mer Services Ltd.
Ian Mercieca
Partner
