On 7th June 2023, the Pay Transparency Directive (Directive (EU) 2023/970) (hereinafter the “Directive”) entered into force representing a significant advancement in the EU’s efforts to ensure the effective enforcement of the principle of equal pay for equal work and for work of equal value between men and women, a principle which, albeit long embedded in the national laws of Member States, has nonetheless coincided with an average gender pay gap of 13% as of 2021.
At the outset, the Directive aims to provide clear and consistent definitions of key terms in the application and enforcement of such principle, mandates greater pay transparency through the introduction of disclosure obligations, and establishes clear enforcement procedures to support alleged victims and diminish the pay gap.
Whereas the transposition deadline imposed on Member States has been set for 7th June 2026, Malta appears to have adopted a piecemeal approach to transposition of the Directive ahead of the transposition deadline, starting with publication of Legal Notice 112 of 2025 (hereinafter the “Legal Notice”), the provisions of which come into force with effect from today, 27th August, 2025.
The Legal Notice amends the existing Transparent and Predictable Working Conditions Regulations (S.L 452.126) by introducing disclosure obligations on all employers, both at a pre- and post- employment stage.
Disclosure Obligations at Application Stage
In terms of the Legal Notice, applicants must receive the following information from their prospective employer:
- Information regarding the initial pay, or its range, in connection with the position concerned; and
- The relevant pay provisions of a collective agreement as applied by the prospective employer in relation to the position, where applicable.
It is to be noted that the amendments brought about by the Legal Notice do not go as far as the Directive with respect pre-employment obligations, such that they fail to prohibit the employer from asking the applicant regarding their current pay or their pay history which prohibition is aimed at enabling fair and transparent pay negotiations based on the role in question.
Disclosure Obligations at Employment Stage
During employment, the Legal Notice obliges employers to provide existing employees with information regarding their own pay levels and the pay levels of categories of workers performing the same work as them. This information is to be provided to employees within reasonable time, and, in any case, no later than 2 months from the date of such request.
It is to be noted that amendments do not specifically require employers to break down the comparative pay information by gender as required by the Directive, which specifically requires that employees are to be given information on the average pay for men and women in comparable categories. Moreover, the amendments make reference to “same work” but not “work of equal value” as referenced in the Directive, possibly leading to a narrower interpretation as to what qualifies as pay information to be considered for the purpose of adhering to this disclosure obligation.
The provisions of the Legal Notice only provide a snapshot of the Directive’s provisions, and therefore further amendments to the legislation are anticipated in order to fully align with the Directive and its underlying intent. It remains to be seen how Malta will continue to transpose and implement these provisions in practice.
For more information on the Directive, the Legal Notice or assistance in connection with the same, please contact the Av. Karl Briffa (karl.briffa@vba.mt) or Av. Julia Darmanin (julia.darmanin@vba.mt).
