The EU Pay Transparency Directive, which came into force on 6 June 2023, must be transposed into national law by all European Member States by 7 June 2026. Malta has begun the process of transposing measures outlined in the Directive with the publication of Legal Notice 112 of 2025 on 27 June 2025. Entering into force on 27 August 2025, this Legal Notice introduces substantial amendments concerning pay transparency obligations impacting both the pre-employment phase and the continuing employment relationship.
Pre-employment obligations
Once the Legal Notice comes into force, employers in Malta will be required to disclose the starting salary or salary range for the role before the applicant begins employment. Where relevant, employers are also required to provide information on any relevant pay provisions contained in collective agreements associated with the position.
By contrast, the EU Pay Transparency Directive, takes a slightly broader approach, requiring employers to share pay information with applicants before interviews and prohibiting inquiries into candidates’ previous salaries. In Malta, however, the Legal Notice does not include such a restriction, allowing employers to inquire about a candidate’s past pay.
Continuing employment obligations
Once in employment, workers will have a right to request in writing information on both their own pay level and the average pay levels of employees performing the same work. Employers will have two months from the date of a request to provide the relevant information.
Under the Legal Notice, ‘pay level’ is defined as both the gross annual salary and the corresponding gross hourly rate, consistent with the definition in the EU Pay Transparency Directive.
It is important to highlight that the scope of comparative pay information under the Legal Notice is more limited than that of the EU Pay Transparency Directive. Whereas the Directive allows employees to obtain pay details for roles of equivalent or equal value, the Legal Notice restricts this right to employees carrying out the same work.
Compliance and enforcement
Employers are required to comply with the provisions of the Legal Notice starting from 27 August 2025. In cases of non-compliance, employees may file a complaint with the competent authorities and seek redress. Employers who breach these provisions may be subject to fines starting at €450. Beyond financial penalties, failure to comply may potentially lead to reputational damage, particularly in an increasingly transparency-driven labour market.
What does this mean for employers?
With these obligations in place, employees will now have the right to request pay information and challenge discrepancies stemming from discrimination or structural inequality. Employers must carefully manage these transparency requirements, integrating them into company policies to provide the necessary information while also safeguarding the company’s integrity.
Ultimately, while the full impact of the Legal Notice on Malta’s labour market and wage structures remains to be seen, one outcome is clear: employer secrecy in pay matters will be difficult to maintain from 27 August 2025 onwards.
