Despite global commitments to gender equality, the gender pay gap remains a persistent issue across all regions. Women globally earn approximately 20% less than men. This gap is evident across Europe, where the gender pay gap stood at 12.7% in 2022. In Malta, the gender gap was 10.2%; however, this gap was higher in certain sectors, such as manufacturing (24.8%), financial and insurance activities (24.1%), and real estate activities (23%).
Unequal pay is one of the various inequalities in the labour market that lead to the gender pay gap, alongside gender segregation in employment and education, lack of women in managerial positions, lack of adequate work-life balance and pay discrimination. While the principle of equal pay for equal work has been widely endorsed, implementing it in practice has proven challenging.
Equal pay for work of equal value covers not only cases where men and women do the same or similar work but also the more usual situation where they do different work. When men and women perform work that is different in content, involving different responsibilities, requiring different skills or qualifications, and is performed under different conditions – but is overall of equal value – they should receive equal remuneration.
This is why the National Commission for the Promotion of Equality (NCPE) has been actively engaged in promoting equal pay through various initiatives over the years.
The NCPE is established and regulated by chapter 456 of the Laws of Malta that prohibits discrimination in employment, including in the terms and conditions such as pay. In 2015, the NCPE concluded an investigation that uncovered instances of gender discrimination in wages, emphasising the critical need to adhere to the principle of equal pay for equal work.
This is the only such complaint that the NCPE has received to date. This lack of complaints does not indicate the absence of gender discrimination in wages; rather, it may be attributed to many employment contracts containing non-disclosure clauses regarding pay. This lack of transparency creates an obstacle for employees to identify any possible discrimination in their pay.
In this regard, the NCPE consistently stresses that work contracts should not include confidentiality clauses about pay. Doing so would enhance transparency in pay structures and help ensure that women and men are equally paid for work of equal value.
In 2017, the NCPE launched the PayM€qually media campaign, aimed at raising awareness about the gender pay gap and highlighting the importance of equal pay for equal work. This campaign served to highlight the ongoing issues related to gender pay discrimination and reinforcing the message that everyone deserves equal pay regardless of gender.
Building on these efforts, the NCPE proposed equal pay for work of equal value as a measure to be given relevance in Budget 2019, while, in 2020, the NCPE started developing an Equal Pay Tool in the framework of an EU-funded project that checks an organisation’s equal pay for work of equal value between women and men.
Since the tool’s creation in 2020, the NCPE worked on its fine-tuning, so that it yields precise results which are also easy to interpret. The tool was officially launched in November 2023 during a business breakfast with Equality Mark certified organisations and other stakeholders. This tool was then integrated into the NCPE Equality Mark Certification, allowing companies with at least 50 employees to apply for the Equal Pay Certification by inputting data related to their human resources into the tool.
Work contracts should not include confidentiality clauses about pay. Doing so would enhance transparency in pay structures
All data is coded in such a manner that employees remain anonymous. Following an analysis of the data inputted, which is carried out by a software developed for this purpose, based on the employees’ coded data, the NCPE provides a report with confidential information and guidance on the equal pay situation within the organisation.
In order to help the eligible and interested organisations to input the data correctly, in February 2024, the NCPE organised two online information sessions on the practical use of the tool. To date, three companies have been awarded the Equal Pay Certification, with several others expressing interest and in communication with the NCPE.
Interested Equality Mark certified organisations can apply for the Equal Pay Certification by contacting the NCPE, indicating their wish to make use of the Equal Pay Tool.
The Equal Pay Tool helps organisations to internally verify whether they are in line with the equal pay principle, especially in the context of the EU Pay Transparency Directive. The directive, which must be transposed into Maltese law by June 2026, introduces several measures to enforce the principle of equal pay for work of equal value. The directive mandates reporting mechanisms and transparency obligations, requiring employers to disclose information related to pay levels and gender pay gaps.
The directive’s provisions include the right for job applicants to receive information on initial pay before an interview, the right for workers to request and receive information on pay levels and the requirement for employers to ensure that job notices and recruitment processes are gender neutral. Employers must also disclose pay criteria and report on gender pay gaps, with additional obligations depending on the size of the company.
Moreover, according to the International Labour Organisation (ILO), ensuring equal pay offers significant benefits to organisations and society as a whole. Equal pay leads to a more effective use of skills, a positive impact on female workers, better human resource management and better working relationships. Additionally, companies that commit to equal pay practices often enjoy enhanced reputations and become more attractive to potential employees.
Addressing the gender pay gap and ensuring equal pay for equal work are crucial steps towards creating a more equal and just society. As Malta moves towards fulfilling its obligations under the EU Pay Transparency Directive, the NCPE will remain committed to closing the gender pay gap. In this effort, certifications such as the Equality Mark, the Equal Pay Certification and, subsequently, the use of the Equal Pay Tool will be instrumental in ensuring that the principle of equal pay is safeguarded across workplaces.
Renee Laiviera is commissioner, National Commission for the Promotion of Equality. The NCPE can be contacted on 2276 8200, equality@gov.mt or NCPE’s social media platforms (Facebook, Instagram and X @NCPE.Malta).