Malta’s new pay transparency regulations, which came into effect on the 5th of June, aim to strengthen fairness and equality in the workplace, but employers are warning that the rushed introduction of the legislation could create significant challenges for businesses trying to comply.
Malta Employers Director General Kevin J. Borg said companies support the objectives of the EU Pay Transparency Directive but need sufficient time, clear guidance and practical tools to implement what is a complex regulatory framework.
“The issue is not whether employers support pay transparency. The issue is whether businesses have been given the practical tools and reasonable timeframe needed to implement obligations that require significant planning and preparation.”
Borg said companies with established human resources structures and collective agreements are better positioned to adapt, particularly following awareness initiatives organised by the Association. However, he warned that compliance requires more than administrative changes, requiring reviews of remuneration structures, pay progression frameworks, recruitment practices and reporting processes.
Concerns have also been raised over the timing of the legislation. While the EU Directive provided the overall framework, businesses only had visibility on Malta’s approach when the Legal Notice was published on 5 June, when the rules had already entered into force.
Borg also questioned provisions that appear to go beyond the Directive, particularly the requirement to respond to certain pay-related requests within eight days instead of the two-month period allowed under EU rules.
Describing the timeframe as “unrealistic, impractical and unnecessary”, he warned that additional requirements could affect business competitiveness. Employers remain committed to supporting pay transparency measures but are calling for clear guidance and a proportionate approach.
