Ireland is taking significant steps toward wage equality with the Gender Pay Gap Information Act 2021, now being rolled out in a phased approach. This legislation aims to bring transparency to pay practices and highlight gender-based wage disparities in workplaces across the country.

As of June 1, 2024, all employers with 150 or more employees were required to publish their gender pay gap reports. This requirement will extend to employers with 50 or more employees starting June 1, 2025.

The legislation requires companies to publish data showing the differences in hourly pay, bonuses, and benefits between male and female employees, including explanations for the gaps and actions being taken to address them.

The EU Pay Transparency Directive: What It Adds

Ireland’s national legislation dovetails with the EU Pay Transparency Directive, adopted in 2023. This directive, which must be transposed into Irish law by June 2026, introduces binding rules across all EU member states aimed at eliminating pay discrimination.

The directive mandates:

• Pay transparency for job seekers, including salary ranges in job ads
• Access to pay data for employees
• Mandatory gender-neutral job classification
• Right to compensation for unequal pay
• Enforcement measures and sanctions for non-compliance

The EU’s directive strengthens existing Irish rules and ensures standardised obligations for employers across Europe, further reinforcing gender equality in the workplace.

Why This Matters: The Benefits of Pay Transparency

The gender pay gap in Ireland currently stands at approximately 11.3%, meaning women earn 11.3% less than men on average for similar work. Transparency initiatives are intended to uncover and address this disparity, which stems from factors like occupational segregation, unconscious bias, and structural inequality.

Transparency benefits include:

• Fairer recruitment practices: Clear pay brackets reduce negotiation bias and ensure equal starting pay
• Employee retention: Workers are more likely to stay with employers who commit to equality
• Reputation boost: Transparent companies are perceived as modern, ethical, and progressive
• Data-driven improvements: Employers can pinpoint gaps and implement targeted policies

According to employment law experts, transparency acts as a “compliance mirror” that forces companies to assess internal practices, identify patterns, and take corrective action.

What This Means for Employers

The new reporting requirements are not just about data collection—they’re about accountability. Companies must analyse their pay structures, provide written explanations for any gaps, and outline steps to address disparities.

Starting in 2025, all Irish businesses with over 50 employees must be ready to:

• Gather and publish gender-based pay data annually
• Justify and contextualise any disparities
• Prepare for internal and public scrutiny
• Comply with the EU Pay Transparency Directive in full by 2026

Businesses that fail to meet these obligations may face legal consequences, reputational damage, and employee dissatisfaction.

However, those that act proactively can become leaders in equality, setting the standard for inclusivity and transparency in Ireland’s modern workforce.

Impact on Employees and Job Seekers

For workers, pay transparency laws provide new rights and assurances:

• Employees can request information about average pay levels and the criteria used for determining salary progression.
• Job seekers will benefit from upfront salary information, reducing wage negotiation disadvantages.
• Victims of pay discrimination will have better legal recourse, including the right to compensation.

For women in particular, these changes represent a major step forward. Data-backed visibility ensures that persistent inequality can no longer be ignored or dismissed.

Looking Ahead: A More Equal Future

The Gender Pay Gap Information Act and EU Pay Transparency Directive together mark a fundamental shift in how pay fairness is approached in Ireland. By demanding transparency, they create a framework where inequality is not just acknowledged — it’s actively addressed.

Ireland’s move toward wage transparency is not just a bureaucratic box-ticking exercise. It is a commitment to justice, equality, and progress in the workplace. As deadlines approach, both employers and employees have much to gain from embracing this transformation.

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