Employers call for Pay Transparency Directive to be postponed

The Malta Employers’ Association has formally requested the Government to postpone the transposition of the EU Pay Transparency Directive into Maltese law, currently scheduled for 7th June, citing a lack of legal clarity and mounting concerns among employers.

In a statement issued Wednesday (today), the Association warned that with just weeks remaining before the deadline, no draft legislation has yet been published, leaving businesses without sufficient guidance to prepare for compliance.

Association President Ivan Refalo said ongoing engagement with members, including surveys, webinars and training sessions, has revealed growing frustration and uncertainty around key elements of the Directive and how it will be implemented locally.

The Directive, which aims to tackle unjustified pay disparities and strengthen gender pay equality across the EU, has faced criticism at both national and European levels. The Association pointed to developments in Sweden, where the government has signalled its intention to delay implementation and push for a renegotiation, citing concerns over administrative burdens and limited flexibility.

At a broader level, BusinessEurope has also advocated for a “Stop the Clock” approach, warning that premature implementation could create operational challenges for businesses across member states.

The Malta Employers’ Association echoed these concerns, arguing that while the Directive’s objectives are well-intentioned, the current framework risks placing significant strain on employers if introduced without adequate preparation.

The organisation is therefore urging the Government to support a temporary postponement at EU level while also delaying local transposition. It said such a move would allow time for potential revisions to the Directive and enable Maltese employers to prepare more effectively once a draft law is published.

Mr Refalo added that a delay would provide greater legal certainty and help ensure that implementation strikes the right balance between advancing gender equality and maintaining labour market efficiency.