EU Pay Transparency Directive: Italy, Malta, and Sweden Compared
Introduction: The EU Pay Transparency Directive’s Impact
The EU Pay Transparency Directive (Directive (EU) 2023/970) is a landmark regulation designed to close the gender pay gap and ensure equal pay for equal work. With a transposition deadline of June 7, 2026, member states are now enacting national laws that impose significant new obligations on employers—from pay transparency in job postings to mandatory gender pay gap reporting.
For multinational employers, the challenge is navigating a patchwork of national implementations. Italy and Malta have transposed the directive with immediate effect, while Sweden has not yet done so and has publicly requested a postponement. This article compares the three approaches, highlighting key deadlines, obligations, and practical steps for compliance.
Italy: Legislative Decree No. 96/2026
Italy is one of only four member states to meet the transposition deadline, enacting Legislative Decree No. 96/2026, effective June 7, 2026. The decree applies to all public and private employers, excluding domestic and intermittent workers, and introduces immediate obligations.
Key Provisions
- Job postings must include the starting salary or salary range and reference the applicable National Collective Bargaining Agreement (NCBA).
- Salary history questions are banned.
- Pay criteria must be accessible to all employees, and employers with 50+ employees must also make pay progression criteria available.
- Employees can request pay comparisons—capped at one per 12 months—and employers have a 60-day response window.
Unique Italian Approach
Italy uses NCBA classifications as the reference for “work of equal value.” This creates a presumption of compliance, allowing employers to supplement but not replace these frameworks. Importantly, the decree does not replace Law 162/2021, which still requires biennial gender equality reports for employers with 50+ employees.
Further obligations, including gender pay gap reporting, are expected in 2027. Employers should begin adapting job architecture and compensation practices now.
Malta: Legal Notice 173 of 2026
Malta has transposed the directive through Legal Notice 173 of 2026, the Equal Pay (Transparency and Reporting) Regulations, effective June 7, 2026, with no transitional period. The regulations apply to all employers and workers in Malta, with obligations scaling by headcount.
Scaled Obligations
- 25+ employees: Maintain written pay structures.
- 50+ employees: Document pay progression.
- 100+ employees: Prepare gender pay gap data.
- 250+ employees: Submit first gender pay gap report by June 7, 2027.
Notable Features
Malta stands out with an 8-day response window for worker pay information requests—far shorter than the EU’s two-month maximum. Moreover, failure to respond accurately within 45 days constitutes a criminal offense, with fines up to €7,000. Malta is unique among early transposers in using criminal enforcement rather than administrative fines.
Employers must act immediately to organize pay data and establish transparent pay structures.
Sweden: Uncertain Status and Non-Transposition
Sweden has not transposed the directive and has no confirmed timeline. On March 26, 2026, the government announced it would not submit a transposition bill, requesting a postponement and renegotiation from the European Commission. The Commission rejected this request on May 22, 2026, leaving the June 7, 2026 deadline standing.
Current Legal Landscape
The existing Discrimination Act (2008:567) still requires employers with 10+ employees to conduct annual equal pay surveys (lönekartläggning). The directive may have direct effect against the state and public sector employers, but private employers are not currently bound by its specific mechanics under domestic law. Swedish courts must interpret existing legislation in light of the directive’s purpose.
Employers should monitor developments closely and prepare for eventual transposition, as the Commission’s rejection signals that non-compliance is not an option.
Comparative Table: Italy, Malta, Sweden
| Aspect | Italy | Malta | Sweden |
|---|---|---|---|
| Transposition status | Transposed (Legislative Decree No. 96/2026) | Transposed (Legal Notice 173 of 2026) | Not transposed; no confirmed timeline |
| Effective date | June 7, 2026 | June 7, 2026 | Unknown (deadline missed) |
| Key obligations | Job postings with salary range, ban on salary history, pay criteria access, pay comparison requests | Written pay structures (25+), pay progression (50+), gender pay gap data (100+), reporting (250+) | Existing annual equal pay surveys (10+ employees) |
| Pay comparison request window | 60 days | 8 days | Not specified |
| Enforcement | Administrative fines | Criminal offense, fines up to €7,000 | Direct effect against public sector; unclear for private |
Actionable Checklist for Multinational Employers
- Assess your footprint: Identify which countries you operate in and whether local transposition has occurred.
- Audit your pay data: Collect and organize compensation data by gender, job category, and location to prepare for reporting.
- Update job postings: Ensure all postings include salary ranges or starting salaries where required (Italy, Malta).
- Review recruitment practices: Ban salary history questions in affected jurisdictions.
- Establish pay structures: Create written pay structures and progression criteria, especially for employers with 50+ employees.
- Prepare for reporting: For Malta, employers with 250+ employees must submit first reports by June 7, 2027. Italy expects reporting obligations in 2027.
- Monitor Swedish developments: Even without transposition, align with the directive’s purpose to avoid future compliance gaps.
Key Takeaways
- Italy and Malta have transposed the directive with immediate effect from June 7, 2026; Sweden has not and faces legal uncertainty.
- Malta’s 8-day response window and criminal enforcement are the most stringent among early adopters.
- Italy’s use of NCBA classifications offers a compliance framework but does not replace existing reporting duties.
- Employers must act now to adapt job architecture, pay structures, and reporting processes.
Conclusion: Proactive Compliance is Essential
The EU Pay Transparency Directive is reshaping pay equity across Europe, and the divergent approaches in Italy, Malta, and Sweden create complexity for multinational employers. Waiting for clarity—especially in Sweden—is risky. The best strategy is to implement robust pay transparency practices now, aligning with the directive’s principles regardless of local transposition status.
To navigate these changes efficiently, compliance teams can leverage regulatory intelligence platforms like AIGovHub, which provide real-time updates on transposition status and obligations across 47+ jurisdictions. Interactive tools like the HR Compliance Checker can help you assess your current pay equity posture and identify gaps. Start by evaluating your compliance readiness today.
This content is for informational purposes only and does not constitute legal advice.