Amendments to the Transparent and Predictable Working Conditions Regulations

By virtue of Legal Notice 112 of 2025, amendments have been made to the Transparent and Predictable Working Conditions Regulations (S.L.452.126 of the Laws of Malta) in preparation for the transposition of the EU Pay Transparency Directive (Directive (EU) 2023/970) into local legislation. The Directive, which must be transposed into national law by all European Member States by the 7th June 2026, has introduced new standards of transparency of employment-related information, namely those regarding pay structures, recruitment processes, and the principle of equal pay for equal work or work of equal value.

The Transparent and Predictable Working Conditions Regulations is pertinent to this discussion since its scope is to set minimum requirements relating to working conditions  applicable  to  every worker in the EU possessing an employment contract or maintaining an employment relationship as defined by law. Most specifically, it obliges employers to notify their employees of the essential aspects of the employment relationship, as per article 5 thereto, such as:

• the place of work;
• the title, grade,  nature  or  category  of  work  for which the worker is employed;
• the brief specification or description of the work;
• the minimum remuneration, overtime  and  special  rates  of  pay, including the frequency and method of payment of such remuneration; and
• the procedure for termination, among others.

In this respect, pursuant to L.N 112 of 2025, the following amendments have been made and are now fully in force, following its publication in the Government Gazette of Malta No. 21,460.

The amendments

Firstly, two definitions have been included.

1. The definition “applicant for  employment” shall mean “any person seeking employment and who is being considered for engagement with a prospective employer”. This pre-empts further protection of employee’s rights through extending the obligation for employers of notification of employment-related information to prospective employees. It stems from the fact that the EU Pay Transparency Directive also safeguards applicants during the recruitment process, and not simply engaged employees.
2. The definition “pay level” shall mean “the gross annual pay and  the corresponding gross hourly pay“. This definition has been added since the EU Pay Transparency Directive requires that once employed, employees are entitled to request such information from their employer in writing. This pushes toward more objective and gender-neutral pay structures among employees within an organisation.

Information Pre-recruitment

Secondly, article 5A shall be incorporated in the Transparent and Predictable Working Conditions Regulations, further enforcing pay transparency prior to and during employment.

Applicants  for  employment  shall  have the  right  to  receive  from  the  prospective  employer information about:

1. the initial  pay,  or  its  range,  to  be attributed to the position concerned; and
2. where applicable,  the  relevant  pay provisions of the collective agreement as applied by the employer in relation to the position.

The law states that this information must be provided to the employee before their commencement of employment.

According to article 6 of the Transparent and Predictable Working Conditions Regulations, there is certain information which must be provided individually to the employee during a period starting on the first working day and not later on the 7^th calendar day, unless it is not already previously provided in their employment contract. However, a second category of information can be provided individually to the employee within one (1) month of their first working day, allowing a wider timeframe for the sharing of information.

Here, the Legal Notice does not directly specify what “before the commencement of their employment” entails, but one may assume that the information must be shared by the employer before the employee’s first official working day. This shall be done in writing.

The Legal Notice falls short on offering the same wide protection to employees in comparison to the EU Pay Transparency Directive since the latter does not permit the employer to ask applicants about their pay history during their current or previous employment relationships at interview stage. However, the Legal Notice does not make this prohibition, therefore employers can still inquire about a candidate’s past pay.

Information Post-recruitment

Thirdly, the new law opines that following recruitment, employees shall also have the right to request from the employer at any time during their employment, similar information they could have requested at recruitment stage, that is:

1. their individual gross annual and hourly pay level; and
2. the gross annual and hourly pay levels for categories of employees performing the same work as them.

Do note that the EU Pay Transparency Directive allows employees to obtain pay details for roles of equivalent or equal value, as opposed to the Legal Notice which restricts this right to employees requesting pay details of employees carrying out the same work, and not roles of equal value (which is much wider in scope).

The employer shall provide such information upon written request by the employee within a reasonable period of time but in any event not exceeding two (2) months from the date on which the request by the employee is made.

Conclusion

The pace of legislative reform in Malta reflects a clear intention to align national employment law with the objectives of the EU Pay Transparency Directive. It is important to emphasise that directives are not directly applicable within Member States unless and until they are formally transposed into domestic legislation. Accordingly, the practical enforceability of the obligations established by the Pay Transparency Directive in Malta remains dependent on the adoption of specific local implementing measures, which, as at the date of writing, are still pending notwithstanding the approaching transposition deadline of 7^th of June 2026.

In this respect, Malta is not alone in facing implementation challenges. Across Europe, the transposition landscape remains fragmented, with several Member States either delaying implementation or still in the process of finalising legislative reforms. Countries such as Germany and Spain have only recently initiated preliminary consultation procedures and are widely expected to miss the transposition deadline due to the absence of final draft legislation. Likewise, Sweden, Estonia, Belgium, and France have publicly expressed concerns regarding the administrative burden imposed by the Directive, with some advocating for delays, simplification measures, or renegotiation of certain obligations.

Other jurisdictions have adopted a significantly more proactive approach. Slovakia has emerged as the first Member State to pass comprehensive implementing legislation, introducing detailed obligations relating to pay disclosure, equal value assessments, employee information rights, and phased reporting obligations. Similarly, Italy, Lithuania, and Romania appear to remain on track towards full or substantial implementation by the June 2026 deadline.

Although Malta has already taken important legislative steps toward compliance, further action remains necessary before the Directive can achieve full legal and practical effect within the Maltese legal framework. Until proper transposition occurs, many of the Directive’s obligations cannot be directly enforced against employers as standalone rights under Maltese law.

Nonetheless, employers should not adopt a passive wait-and-see approach. Businesses would be well advised to proactively familiarise themselves with the anticipated obligations and begin integrating pay transparency measures into their:

1. recruitment procedures;
2. remuneration structures, and
3. internal employment policies.

How Can AE Help   

At AE, we assist employers in preparing for the evolving pay transparency obligations being introduced through Malta’s implementation of the EU Pay Transparency Directive. Our team advises businesses on the legal and practical implications of the recent amendments to the Transparent and Predictable Working Conditions Regulations and the wider reforms expected ahead of the June 2026 transposition deadline.

We support employers with reviewing recruitment practices, remuneration structures, employment contracts, and workplace policies to help ensure greater transparency, consistency, and compliance with emerging legal requirements.

We also advise businesses on employee information rights, pay reporting obligations, equal pay considerations, and the management of compliance risks arising from non-transparent pay practices or inconsistent remuneration structures.

Contact our team for tailored advice on preparing your organisation for Malta’s upcoming pay transparency framework.