What’s New with the EU Pay Transparency Directive?
by Paul Gonzi
19/02/2025
The EU Gender Equality Strategy 2020-2025 has spotlighted gender pay transparency as a top priority. As a result, the EU Pay Transparency Directive must be integrated into the national laws of EU member states by June 7, 2026.
For many of us, this brings about a massive culture shift.
Here’s a quick rundown of what C-Suite and HR specialists need to know:
Transparency Obligations:
Employers must provide applicants with more details about pay rates or ranges.
Employees have the right to know the average pay rates among their peers.
Employees should get detailed information on pay gaps each year, and some employers will need to publish reports on this.
Enforcement Obligations:
National laws must ensure that the burden of proof lies with the employer.
Employees may be entitled to restitution and back pay if there’s unequal pay.
Employees can file claims without time limitations if they were unaware of the infringement.
Member States can introduce proportionate and reasonable penalties for non-compliance.
Read more here to learn about the origins of the Directive or here to learn how Maltese law currently regulates Equal Pay. Get in touch if you need help navigating these changes. Employment360 can direct you to specialists in law, HR consultancy, stats and tech.
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