By Désirée Attard, published on June 10, 2025

With less than a year to go before the EU’s Pay Transparency Directive comes into force, we’re taking a look at its main elements, what it will mean in practice for Malta’s employment legislation, and how ABB Legal guides employers and employees in navigating this shifting landscape. 

What is Directive (EU) 2023/970? 

Adopted in 2023, this directive aims to truly enforce the right to equal pay for equal work, which to date, remains challenging. The directive introduces binding measures, including an increase in transparency in pay structures, as well as information on pay at hiring stage. 

EU Member States were given three years to transpose this directive into national law, and the deadline is now around the corner. It is a certainty that Malta will have fully transposed the directive before, or at least on, the 7th of June 2026.

What is the Gender Pay Gap? 

The European Institute for Gender Equality describes the gender pay gap as “the percentage of women’s earnings and represents the difference between the average gross hourly earnings of female and male employees”.1

Malta and equality in employment

In Malta, non-discrimination in employment, including equal pay, is enshrined in the Constitution:

“[…] the State shall in particular aim at ensuring that women workers enjoy equal rights and the same wages for the same work as men”2

Throughout the years, this fundamental provision was complemented by several clauses in employment and non-discrimination law prohibiting, among others, discrepancies in pay on the basis of gender.  

While Malta’s gender pay gap is among the smallest in the EU (currently standing at 2%),3 the gender gap (as well as the gender pay gap) remain a reality which cannot be ignored. 

The Directive’s Measures

With the transposition of the Pay Transparency Directive, Maltese law – and therefore, employers in Malta, will have to implement, as a minimum, the following:-

  • A Transparent Recruitment Process

The directive requires hiring employers to immediately share the salary range for the vacant position advertised, either in the vacancy advert itself, or ahead of the interview. The recruitment process must also be as fair and neutral as possible, with job titles being gender-neutral, and questions on a candidate’s salary history forbidden. 

  • Accessible Pay Structures and Information

Employees now have the right to access information related to pay, including information on their own salary level, as well as average pay levels by gender. It is crucial that employers are able to explain the criteria used for determining pay brackets for particular positions, as well as career progressions. 

  • No more secrecy

Employees cannot be prohibited from discussing pay with their colleagues. 

  • A Reporting Obligation

Reports must provide detailed metrics on pay gaps, variable pay components, and pay quartiles. If the reports submitted indicate a gender pay gap of 5% or more, which gap cannot be objectively justified, employers will be required to take corrective action in the form of a joint pay assessment, carried out with worker representatives, such as trade unions. 

Reporting obligations are expected for all employers with 100+ employees in Malta, but the rollout has been staggered, with smaller employers being given more breathing space:

  • Employers (both in the public and private sector) with 150+ employees are to submit their first report by 7/6/2027, reporting on the calendar year 2026;
  • Employers with 100-149 employees are to submit their report four years later, by 7/6/2031, reporting on the calendar year 2030.

Reporting requirements also vary according to size: 

  • Employers with 250+ employees are to report annually;
  • Employers with 100-249 employees are to report every three years

Smaller employers aren’t let off the hook: pay transparency measures remain applicable. 

Preparing for this legal transition

Employers, now is the time to reflect on hiring practices, contractual obligations, pay structures, and office culture as a whole. 

At ABB Legal, we are available to assist you with:

  • Internal Policy Review & Drafting for recruitment processes
  • Internal Policy Review & Drafting for addressing pay information requests
  • Employment Contracts Review & Drafting
  • HR training on inclusivity, transparency, and gender-neutrality

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This article does not constitute legal advice. While all efforts are made to ensure that the information provided on this website is up to date, some information, material, or content may not be the most recent. For personal legal advice, we kindly ask that you contact us for an appointment.

  1. EIGE, “gender pay gap” ↩︎
  2. Constitution of Malta, Art. 14 ↩︎
  3. Gender Equality Index, 2024 ↩︎

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