EU Pay Transparency Directive in Malta

Malta’s transposition of the EU Pay Transparency Directive in Malta came into effect on 5 June 2026 with the publication of the Equal Pay (Transparency and Reporting) Regulations, 2026 (Legal Notice 173 of 2026). With the exception of certain transitional provisions relating to existing collective agreements, the Regulations apply with immediate effect. For the vast majority of Maltese employers, the new obligations are already in force.

A clear and detailed pay transparency framework


While the Regulations faithfully transpose the Directive, Malta has chosen to go further in several important respects, providing organisations with a clear and detailed framework for managing pay transparency and pay equity.


Employers are required to adopt and maintain written policies or criteria establishing the objective, gender-neutral basis for determining workers’ pay, pay levels and pay progression. Employees also have the right to request information about their individual pay and the average pay of colleagues performing the same work or work of equal value.


Employers must respond to such requests within eight calendar days. Failure to provide accurate and complete information within 45 days of the initial request constitutes an offence under the Regulations. In addition, pay-related data must be retained for a minimum period of five years.

Gender pay gap reporting deadlines for employers


For employers with 250 or more workers, the timeline is particularly important.


Their first gender pay gap report, covering the entire 2026 calendar year, must be submitted to the designated Monitoring Body within 14 working days from 31 December 2026. In practical terms, this means the report must be filed by no later than 21 January 2027.


The report must include gender pay gap data in both mean and median terms and cover fixed and variable remuneration, categories of workers, and pay distribution across quartile bands. Following consultation with employee representatives, where these exist, management must formally confirm the accuracy of the information submitted.

Pay transparency: five priorities for employers

  1. Role profiles
    Ensure that job descriptions are clearly drafted, sufficiently detailed, regularly reviewed and aligned with actual responsibilities.
  2. Written pay policies
    Objective, gender-neutral criteria governing pay, pay levels and pay progression should be formally documented and accessible to all employees.
  3. Internal pay equity
    Review whether the organisation’s pay structure genuinely supports equal pay for equal work and work of equal value. Job categories and salary bands should reflect objective and justifiable distinctions
  4. Identification of outliers
    Assess individual remuneration arrangements that fall outside established salary bands or that are based on undocumented historical decisions.
  5. Remedial action
    Where pay gaps or inconsistencies cannot be objectively justified, proactive corrective measures should be considered.


Turning compliance into a long-term organisational asset


Organisations that invest in structured, transparent and well-documented pay frameworks today stand to gain benefits that extend far beyond regulatory compliance.


A fair and transparent approach to remuneration helps build trust across the workforce, reduces the risk of disputes, strengthens employee engagement and supports talent attraction and retention efforts. It also places organisations in a far stronger position when reporting deadlines arrive, reducing the risk of last-minute compliance exercises and reactive decision-making.


More broadly, the Regulations provide an opportunity to review the fairness, consistency and transparency of existing pay practices, address historical anomalies and establish a more robust and defensible reward framework for the future.


Those who act early will not only be better prepared to meet their legal obligations but will also be better positioned to strengthen governance, enhance organisational resilience and demonstrate their commitment to fair and equitable employment practices.


How RSM Malta can help


RSM Malta supports organisations in assessing their readiness for the new pay transparency requirements through role evaluation exercises, pay structure reviews, gender pay gap analysis and the development of compliant remuneration frameworks. Our team can help you identify potential risks, address gaps and establish practical solutions that meet both regulatory requirements and business objectives.


To learn more about how your organisation can prepare for the new Regulations, contact RSM Malta’s Human Resources and Employment Advisory team.


Article written by Roberta Buhagiar - Director, GRC