Malta

KEY DEVELOPMENTS FOR 2026

Expected Transposition of the EU’s Pay Transparency Directive

The EU’s Pay Transparency Directive (PTD) entered into force in May 2023, and will need to be implemented into Maltese law by the June 7, 2026.

Malta has taken its first formal step towards partially transposing the PTD with the publication of Legal Notice 112 of 2025, which came into force on Aug. 27, 2025, and partially introduced the PTD’s requirements by providing job applicants and current employees with certain rights to information. Applicants for employment now have the right to receive from the prospective employer information about (i) the initial salary or its range and (ii) where applicable, the relevant provisions of the collective agreement as applied by the employer in relation to the position. This information must be provided to the workers before commencement of their employment.

Further regulations are expected to be introduced throughout 2026 in order to ensure full transposition of the PTD, including further pay transparency rights and obligations on employers to report certain pay-related data.

 If they have not already done so, employers should carry out the following to ensure full compliance with the Legal Notice as we approach the transposition deadline for the PTD:

• Ensure organizational compliance with the current regulations on pay transparency that came into force in Malta on August 27, 2025, in readiness for the upcoming regulations, which are expected to be introduced in Malta by June 7, 2026, in line with the PTD.
• Ensure that a proper job evaluation or classification exercise is carried out in relation to the various roles across the organization and assessing any pay gaps within the organization or equal pay issues which may need to be addressed.
• Review current pay structures and establish clear salary frameworks if these are not yet in place
• Review employment contracts and other employment documents to align with the PTD’s transparency requirements.

Pensions Auto-Enrollment Regime

When announcing the Malta Budget for 2025, the government announced that it will be introducing a new set of rules that will require employers to have an occupational pension scheme in place and to auto-enroll their employees into this scheme, unless an employee chooses to opt out of the scheme.

Based on the consultation document that was published, employers can expect some of the following obligations that are found in the proposals:

• Employers will be required to identify an occupational pension scheme that qualifies to use to offer pensions within their organisation. They will also need to ensure that the chosen pension scheme is in line with the auto-enrollment rules.
• Employers will then be obliged to enter into a contractual arrangement with the chosen pension scheme provider to regulate the obligations of the employer and the scheme provider.
• Employers will be required to identify which employees are considered “eligible employees” under the rules, and to automatically enroll all eligible employees working within their organization into the chosen occupational pension scheme.
• Employees will however have the right to opt-out of the scheme, and if an employee does opt-out, employers will then be obliged to offer employees the opportunity to re-enroll into the scheme on an annual basis.
• Pension contributions may be made solely by the employee, or jointly by the employee and the employer.
• A minimum monthly pension contribution by the employee is set at €50, which contribution shall be deducted directly from the employee’s salary following their written consent.
• Employer contributions will remain voluntary. The government has however announced its commitment to match employee contributions for public sector employees, up to a maximum of €100 per month.

Miscarriage Leave and Special Parental Bereavement Leave

Special Parental Bereavement Leave
A working parent will be entitled to a new type of leave for up to seven working days that can be used in the event of the death of a child under the age of 18. Previously, this type of leave was one or two days depending on the sector, but it will now be increased to seven days.

Miscarriage Leave
If a pregnancy ends before the 22nd week, it is considered a miscarriage and the parents are entitled to miscarriage leave. If the pregnancy reaches 22 weeks or more, the parents are entitled to maternity leave even in the event of a pregnancy loss. Every worker will have the right to seven consecutive calendar days of paid miscarriage leave when a miscarriage occurs, and this leave should be taken immediately following the miscarriage.

The effective date of these increased entitlements will be communicated in the coming months, so in the meantime, employers should begin preparations to amend leave policies and contracts to include these leave entitlements.