Legal Notice 173 of 2026, Equal Pay (Transparency and Reporting) Regulations 2026, under Malta’s Employment and Industrial Relations Act (Chapter 452).
Background Note
Legal Notice 173 of 2026 introduced the Equal Pay (Transparency and Reporting) Regulations, 2026 under Malta’s Employment and Industrial Relations Act (Chapter 452). The Regulations transpose EU Directive 2023/970 on pay transparency into Maltese law and strengthen the principle of equal pay between women and men for equal work or work of equal value. They apply across both the public and private sectors.
The Regulations introduce greater transparency throughout the employment relationship, beginning at recruitment stage. Job applicants are entitled to information on the initial salary or salary range for a position, based on objective and gender-neutral criteria. Employers are also prohibited from asking candidates about their previous or current salary history, while vacancy notices, job titles and recruitment processes must be gender-neutral and non-discriminatory.
Employers must ensure that their pay structures support equal pay for equal work or work of equal value. Differences in pay remain possible where they are based on objective, gender-neutral and bias-free factors, such as performance or competence. Relevant criteria for assessing work of equal value include skills, effort, responsibility and working conditions.
The Regulations also strengthen employees’ right to information about pay. Workers may request information concerning their individual pay level and average pay levels, broken down by sex, for employees carrying out the same work or work of equal value. Employers must also inform workers annually about this right.
A significant new obligation concerns gender pay-gap reporting for larger employers. Employers with 100 or more workers will be required to prepare Pay Gap Reports, with reporting obligations introduced progressively according to workforce size. Employers with 250 or more workers will report annually from 2027; those with 150–249 workers every three years from 2027; and those with 100–149 workers every three years from 2031.
Where reporting identifies a gender pay difference of at least 5% within a category of workers, which cannot be objectively justified and is not remedied within six months, the employer may be required to carry out a joint pay assessment with employees’ representatives.
The Regulations also strengthen enforcement. Workers who suffer loss because of a breach of equal-pay requirements may seek recovery of lost pay and compensation before the Industrial Tribunal. They are protected against victimisation for exercising their rights, and in certain circumstances the burden of proof shifts to the employer. Breaches may also result in criminal fines.
In practice, the new framework moves Malta towards a more transparent approach to remuneration, requiring employers to ensure that pay decisions can be supported by objective and gender-neutral criteria, while giving employees greater access to information and stronger mechanisms to challenge unjustified pay disparities.
Key issues likely to arise
- Historic salary differences may become visible.
- Determining ‘work of equal value’ may be difficult.
- Employers may struggle to justify discretionary salaries and increases
- Recruitment practices will need to change.
- Employee information requests could create immediate HR and legal issues
- Transparency may lead to more disputes.
- Employers with 100+ employees face an additional compliance exercise.
Malta’s new Pay Transparency Regulations affect much more than gender pay-gap reporting. They change how employers recruit, determine salaries, manage pay progression and respond to employees who question differences in remuneration.
Equal Pay Disputes and Industrial Tribunal Representation
The new pay transparency framework may lead to an increase in disputes where employees become aware of differences in remuneration between themselves and colleagues carrying out the same work or work of equal value. An employee who believes that their rights have been breached may seek assistance from the Department of Industrial and Employment Relations (DIER), which can investigate alleged breaches of employment law. Claims concerning discriminatory treatment or a breach of the principle of equal pay for equal work or work of equal value may also be brought before the Industrial Tribunal.
Sciberras Advocates can assist employees from the earliest stage of a potential equal-pay dispute. This may include reviewing employment contracts, payslips, job descriptions and available comparative pay information; assessing whether employees are performing the same work or work of equal value; advising on requests for pay information under the new Regulations; preparing and supporting a complaint submitted to DIER; and corresponding with the employer or DIER during an investigation. Where the matter cannot be resolved, the firm can advise on and represent the employee in proceedings before the Industrial Tribunal, including preparing the claim, compiling supporting evidence, addressing the employer’s justification for any difference in pay and pursuing the remedies available under Maltese employment law.
Sciberras Advocates can likewise advise employers who receive a complaint or become subject to a DIER investigation. This includes reviewing the alleged pay disparity, assessing whether differences can be supported by objective and gender-neutral criteria, preparing responses and documentation for DIER, advising on corrective measures or possible settlement, and representing the employer should the dispute proceed before the Industrial Tribunal.
Seeking Advice on Equal Pay and Pay Transparency
The Equal Pay (Transparency and Reporting) Regulations, 2026 introduce important new rights for employees and corresponding responsibilities for employers. As greater access to pay information develops, questions surrounding pay differences, work of equal value and the objective justification of remuneration decisions are likely to become increasingly important in the workplace.
For employees, understanding whether a difference in pay may amount to unlawful discrimination requires careful consideration of the work performed, the applicable pay structure and the circumstances of the individuals concerned. For employers, early review of existing remuneration practices can help identify potential issues and ensure that differences in pay can be supported by legitimate, objective and gender-neutral criteria.
Sciberras Advocates assists both employees and employers with equal-pay matters, including advice under the new Pay Transparency Regulations, DIER complaints and investigations, settlement discussions and representation before the Industrial Tribunal.
Cet article est à titre informatif seulement et ne doit pas être interprété comme un avis juridique.
Article rédigé par Mme Charlene Sciberras, B.A. (Hons), rédactrice invitée, est une spécialiste du marketing et de la gestion d'entreprise avec un accent particulier sur les questions d'entreprise, comptables et juridiques.
Sciberras Advocates, fondé par Dr Adrian Sciberras, est un cabinet d'avocats basé à Malte. Le cabinet s'enorgueillit d'être multidisciplinaire, innovant et flexible afin de répondre aux évolutions et aux défis du paysage juridique local et international. Quelle que soit la complexité des demandes privées ou d'entreprise, Sciberras Advocates propose des solutions juridiques pratiques et rentables pour atteindre les résultats souhaités. Vous pouvez contacter Sciberras Advocates par téléphone au +35627795222ou par courriel sur [email protected].
