Background

The Equal Pay (Transparency and Reporting Regulations), 2026’ (the ‘Regulations’) were published on the 5th of June 2026, transposing the EU Equal Pay Transparency Directive into Maltese law. These Regulations introduce a significant shift in the regulation of pay equality in Malta, placing enhanced obligations on employers while strengthening the rights and remedies available to workers.

Summary

At the core of the new framework are enhanced transparency and enforcement mechanisms. In particular, employers meeting certain workforce thresholds are required to prepare and submit periodic Pay Gap Reports, disclosing gender-based pay disparities within their organisation. Where such reports reveal unjustified differences of 5% or more, employers may be required to undertake a Joint Pay Assessment in collaboration with employee representatives, with a view to identifying, addressing, and preventing discriminatory pay practices.

Alongside these structural obligations, the Regulations significantly strengthen individual rights. Most notably, workers who suffer pay discrimination are entitled to full recovery of lost pay, together with compensation, so as to place them in the position they would have been in had the breach not occurred.

These measures are complemented by additional transparency obligations, including requirements relating to pay-setting criteria, access to pay information, and pre-employment disclosures, all of which serve to reinforce the principle of equal pay for equal work or work of equal value.

New Obligations for Employers

Pay Structure and Equal Pay

Under the Regulations, employers are required to establish pay structures that ensure equal pay for equal work or work of equal value.

However, the Regulations do not prevent employers from paying workers differently for the same work or work of equal value, provided that such differences are based on objective, gender-neutral, and bias-free criteria, including (but not limited to) performance and competence.

Written Pay Policies and Criteria

Employers must adopt and maintain written policies or criteria setting out the objective and gender-neutral factors used to determine pay, pay levels, and pay progression. These must be accessible to workers at all times.

Exemptions

Employers with fewer than 25 employees are exempt from maintaining policies relating to pay progression.

Employers with 25–49 employees must document the relevant criteria internally but are not required to make such policies continuously accessible to workers.

Gender-Neutral Job Titles and Vacancies

Employers must ensure that job titles and job vacancy notices are gender-neutral.

The Pay Gap Report

Employers with 100 or more employees are required to prepare a Pay Gap Report containing information on the gender pay gap and related data.

This obligation is introduced gradually:

  • Employers with 250+ employees must submit their first report by 7 June 2027 (covering 2026) and annually thereafter.
  • Employers with 150–249 employees must submit their first report by 7 June 2027 (covering 2026) and every three years thereafter.
  • Employers with 100–149 employees must submit their first report by 7 June 2031 (covering 2030) and every three years thereafter.

Subsequent reports (other than the first) must be submitted to the Monitoring Body within 14 working days from the end of the relevant reporting period.

Employers with fewer than 100 employees may submit reports voluntarily.

The Joint Pay Assessment

Where:

(i) The Pay Gap Report reveals a difference of 5% or more in average pay between male and female workers within any category of work;

(ii) the employer cannot justify the difference based on objective and gender-neutral criteria; and

(iii) the difference is not remedied within six months from submission of the report:

then the employer must carry out a Joint Pay Assessment together with employee representatives.

This assessment must (amongst others):

(a) identify and address unjustified pay differences;

(b) include measures to remedy such differences; and

(c) evaluate the effectiveness of measures taken in previous assessments.

New Rights for Workers

Right to Compensation and Recovery of Lost Pay

Any person who suffers loss of pay due to a breach of the principle of equal pay is entitled to full recovery of lost pay, together with compensation.

The compensation must place the worker in the position they would have been in had the breach not occurred.

Pre-Employment Pay Transparency

Job applicants have the right to receive information pm:

(a) the initial pay or salary range for the role;

(b) any relevant provisions of a collective agreements applicable to the role.

Right to Information During Employment

Workers may request and receive, in writing:

(i) their individual pay level; and

(ii) average pay levels, broken down by sex, for workers performing the same work or work of equal value.

Prohibition on Salary History Questions

Employers are prohibited from asking job applicants about their salary history, whether in current or previous employment.

Conclusion

The Equal Pay (Transparency and Reporting) Regulations mark a step change in how pay equality is regulated and enforced in Malta. For employers, early preparation, from data readiness and policy updates to communication with workers and representatives, will be key to managing both legal exposure and employee expectations.

By investing in robust, gender‑neutral pay structures and clear internal processes now, organisations can not only meet their new obligations, but also strengthen trust, retention, and their overall employer brand in an increasingly transparent labour market.

Contact us

If you would like to understand how these new Regulations impact your organisation, or need support in reviewing your pay structures, reporting processes, and documentation, our zeta. team is here to assist.

You can reach us on info@zeta-financial.com or get in touch via our website to speak with one of our specialists about implementing a compliant, practical pay transparency framework tailored to your business.

This note is provided for general information purposes only and does not constitute legal, tax, or other professional advice. It is not intended to be relied upon as a substitute for specific advice tailored to your circumstances.

While every effort has been made to ensure the accuracy of the information at the time of publication, no representation or warranty (express or implied) is given as to its completeness, accuracy, or reliability, and zeta. accepts no responsibility or liability for any loss or damage arising from reliance on this publication or its contents.

Readers should not act, or refrain from acting, on the basis of this information without obtaining appropriate professional advice.