ALERT / OCTOBER 14, 2025
Malta partially transposes the EU Pay Transparency Directive
Malta has partially transposed the European Union Pay Transparency Directive through the introduction of two specific pay transparency rights:
The right for job applicants to receive information from the prospective employer about the initial pay or pay range for the position concerned.
The right for current employees to request from the employer their individual pay level and pay levels for categories of employees performing the same work.
These changes entered into force on 27 August 2025.
Background
The European Union Pay Transparency Directive (Directive (EU) 2023/970, the “EU Directive”) entered into force on 6 June 2023 and requires each EU member state to transpose its provisions into their national law by 7 June 2026. The EU Directive sets minimum standards to strengthen pay transparency, promote equal pay for equal work, and impose gender pay gap reporting obligations on employers. While Member States must meet these minimum standards, they are also free to go beyond them, meaning national approaches to pay transparency may vary across the EU. (See Lockton article here (opens a new window) for more details on the EU Directive and creating a roadmap for compliance.)
Malta began the process of transposing the EU Directive’s provisions by publishing Legal Notice 112 of 2025 (the “Legal Notice”) on 27 June 2025. The Legal Notice came into force on 27 August 2025 and amends the existing Transparent and Predictable Working Conditions Regulations.
Since the Legal Notice only addresses certain pay transparency requirements under the EU Directive, further legislative measures will be required for Malta to fully transpose the EU Directive by the June 2026 deadline.
Key details
Right for job applicants to receive pay information prior to commencement of employment
From 27 August 2025, job applicants have the right to receive from the prospective employer information on:
The initial pay or pay range for the position concerned.
Where a collective agreement is applicable, the pay provisions of such collective agreement as applied by the employer to the position.
Such information must be provided to the job applicant before the start of employment.
This provision varies from the standard set under the EU Directive, which provides that employers must disclose the pay or pay range earlier in the recruitment process (either in the job advertisement or prior to the interview).
Right for current employees to request pay information
From 27 August 2025, employees have the right to request information from their employer on:
Their individual pay level.
The pay levels for categories of employees performing the same work.
This right may be exercised at any time during employment. Employers must provide the requested information within a reasonable period of time but no later than two months of the request.
The Legal Notice defines “pay level” as gross annual pay and the corresponding gross hourly pay, aligning with the definition used in the EU Directive.
However, while the EU Directive provides a broader right to information, covering average pay levels for employees performing the same work or work of equal value, the Legal Notice limits the scope to employees performing the same work only. Additionally, the EU Directive requires the information to be broken down by sex, but the Legal Notice does not require such a breakdown.
The EU Directive also requires employers to inform employees annually of their right to request pay information. This obligation is not reflected in the Legal Notice.
Future legislative changes may still be made to fully align these pay transparency provisions with the minimum requirements of the EU Directive.
Employer action: ACT
Employers should review and prepare to update their recruiting and HR policies, practices and procedures, as needed, to reflect the changes, if they have not already done so. In particular, employers should ensure that job applicants receive the required pay information prior to commencement of their employment.
If there are any additional legislative proposals to further transpose the EU Directive, the Lockton Global People Solutions Compliance Practice will publish an update accordingly.
Further Information
