Malta Introduces New Pay Transparency Law: What You Need to Know
by Paul Gonzi
16/06/2026
Malta has introduced new rules on equal pay and pay transparency through the Equal Pay (Transparency and Reporting) Regulations, 2026.
This new pay transparency law in Malta brings major changes for employers, requiring them to be more organised, transparent, and accountable in how they set and manage pay.
What is changing under Malta’s new pay transparency regulations?
The principle of equal pay for equal work or work of equal value already exists in Maltese law.
What these new regulations do is go further — they require employers to clearly explain, document, and justify pay decisions.
Stronger equal pay obligations (all employers)
Employers must now actively demonstrate that pay differences are fair and based on objective criteria.
Mandatory structured pay systems
Employers must introduce clear pay frameworks based on:
-
- Skills
- Effort
- Responsibility
- Working conditions
- Other relevant factors, including soft skills
New pay transparency rights (employees and candidates)
Employees and job applicants have increased rights to access information about pay levels and pay differences.
Documented pay systems (25+ employees)
Employers must formally document pay structures and internal pay levels.
Pay progression policies (50+ employees)
Employers must explain how salaries grow over time.
Gender pay gap reporting in Malta (100+ employees)
Larger employers must report on gender pay gaps, with specific thresholds and timelines.
Action required on pay gaps
Where unexplained pay gaps of 5% or more are identified, employers may be required to assess and address them.
Enforcement and litigation risk under the new law
The new equal pay and pay transparency rules in Malta come with increased enforcement and legal exposure.
- A shift in the burden of proof — employers must justify pay differences
- Risk of claims for back pay and benefits
- Potential compensation for damages
- Increased scrutiny from authorities such as DIER and NCPE
- A 3-year limitation period (which may be extended in certain cases)
- Application to former employees
- The possibility of interim court orders
These changes mean that pay transparency is no longer just a compliance issue — it is a key legal and risk management concern.
When do the new pay transparency obligations apply?
The regulations are already in force, with some obligations applying immediately.
Most importantly:
The first gender pay gap reporting cycle will be based on 2026 data
This means that employers in Malta should begin preparing for pay transparency compliance now.
How employers in Malta should prepare
Employers should start reviewing their current pay practices as soon as possible.
- Do we have a clear and structured pay system?
- Can we explain and justify pay differences between employees?
- Are roles evaluated using fair and objective criteria?
- Are we ready for pay transparency reporting requirements?
A proactive review now can help reduce the risk of future claims and regulatory issues.
Next steps and further insights
We are analysing the full impact of the new pay transparency regulations in Malta, including how they interact with existing employment law.
We will be sharing further insights, practical guidance, and updates shortly through our Employment 360 portal, and will also be announcing a dedicated seminar on this topic.
Similar Insights
