By Joanne Bondin, Director at misco
The adoption of the EU Pay Transparency Directive marks a pivotal moment across Europe, including Malta, reinforcing the long-standing Maltese principle of equal pay for equal work, while also embedding the concept of equal pay for work of equal value, with particular emphasis on “value”, aiming to narrow the gender pay gap.
“For those of us working in human resources, the directive is not simply another compliance requirement, but a catalyst for meaningful change in how we reward, value, and engage our people,” says Joanne Bondin, Director at MISCO.
One of the most notable changes is the requirement for greater openness in recruitment. Employers must inform job candidates of the salary range for a vacancy, though the timing of this disclosure is left for employers to decide strategically.
Notably, asking about an applicant’s current or past remuneration will no longer be permitted.
This shift has the potential to reset entrenched hiring dynamics by focusing discussions on the value of the role rather than the perceived worth of the individual based on previous earnings.
Equally significant is the right for employees to request information on their own pay and how it compares with that of colleagues performing the same or similar work, broken down by gender.
For some organisations, this may challenge long-standing taboos around salary discussions. For HR professionals, however, it underlines the role transparency plays in building trust, clarity, and accountability.
The directive goes further still. Large organisations, initially those employing 250 or more people, and later those with as few as 100, will be required to submit reports on their gender pay gap. This is a decisive step toward embedding transparency and fairness into corporate structures, with HR playing a critical role in ensuring the process is both meaningful and constructive.
“What this directive demands is not a legal workaround or an exercise in PR, but a cultural transformation,” notes Ms Bondin.
“It challenges employers to re-examine the foundations of their pay and grading systems, asking whether they are truly gender-neutral and performance-driven, and places the responsibility for equitable structures firmly within the HR function, where it belongs.”
HR professionals should view this as an opportunity to strengthen their organisation’s offering. It provides a platform where transparency and openness form the basis of decisions, giving both employers and employees a clear framework for pay-related matters.
HR teams should lead this transformation as a strategic initiative to truly understand the people and culture of their organisations. While compliance is the starting point, culture is the destination.
Ms Bondin calls for a proactive approach.
“Every organisation should begin with a thorough internal audit, not just to identify any gender pay gaps, but to understand the mechanisms behind pay decisions. Often, disparities arise not from intentional bias but from outdated practices, inconsistent evaluation criteria, or natural organisational changes such as rapid growth or mergers. Addressing them requires more than data; it calls for dialogue and reflection.”
“This is where HR adds real value. We are uniquely positioned to challenge assumptions, to ask difficult questions, and to design the frameworks needed to ensure fairness is embedded at every stage of the employee journey. From how we write job descriptions to how we determine merit increases. Any HR strategy should be central to achieving pay equity.”
Pay transparency also strengthens employer branding, particularly with younger talent. While technology supports data tracking, it is HR’s human-centred approach that ensures fairness, clarity, and trust in pay practices.
“There will inevitably be resistance. Change of this scale can cause discomfort, particularly in organisations unaccustomed to such openness. But the benefits far outweigh the challenges. A transparent pay culture reduces grievances, fosters a sense of value and respect among employees, and nurtures trust,” Ms Bondin says.
“Ensuring transparency in remuneration is not just a legal obligation. The EU Pay Transparency Directive gives us a timely opportunity not only to close the gender pay gap, but to redefine what fairness in the workplace truly means,” she concluded.
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