In 2025, it seems almost unbelievable that women in Ireland still earn less than men for doing the same work. Despite decades of progress in gender equality, the gender pay gap remains a persistent issue, highlighting the barriers that continue to prevent women from achieving true financial parity with men. According to the Central Statistics Office (CSO), the average gender pay gap in Ireland stands at approximately 11.3%, meaning that, on average, women earn about €11 less for every €100 earned by men.

This disparity is not just a matter of numbers—it reflects deeper issues related to career progression, discrimination, and the undervaluation of roles traditionally dominated by women. As Ireland moves forward, closing the gender pay gap must be a priority, not just for the sake of fairness but also for the economic benefits that greater gender equality brings.

The Root Causes of the Gender Pay Gap
Understanding why men continue to earn more than women requires an examination of the underlying factors contributing to the pay gap. One of the most significant is occupational segregation—the tendency for men and women to work in different industries and roles. In Ireland, men are more likely to be employed in STEM fields, finance, and senior management, which typically offer higher salaries, while women are disproportionately represented in education, healthcare, and administrative roles, which tend to be lower paid.

Moreover, women are more likely to work part-time due to caregiving responsibilities, which affects their career progression and pension contributions. The lack of affordable childcare in Ireland exacerbates this issue, making it difficult for women to pursue full-time careers or return to work after maternity leave.

Another significant factor is the so-called “motherhood penalty”—the tendency for women’s earnings to decrease after having children, both due to time taken off work and the perception that mothers are less committed to their careers. In contrast, men often experience a “fatherhood bonus,” with studies showing that fathers are more likely to receive pay rises and promotions.

The Pay Transparency Challenge
In 2022, the Irish government introduced the Gender Pay Gap Information Act, requiring companies with over 250 employees to report their gender pay gaps. While this was a step in the right direction, the impact has been limited, with many companies finding loopholes to present more favourable figures. The legislation will expand to include companies with 150+ employees by 2024, but critics argue that more robust measures are needed, such as mandatory action plans to address pay disparities.

The lack of pay transparency in smaller companies, where many Irish women work, means that a significant portion of the workforce remains unaffected by these reporting requirements. Without transparency, it’s difficult to hold employers accountable or even to prove that a pay gap exists within a company.

Unequal Access to Senior Roles
The gender pay gap is also driven by the lack of women in senior and executive positions. According to a report by Ibec, women occupy only 28% of senior management roles in Ireland. The so-called “glass ceiling” continues to prevent women from advancing to higher-paid positions, despite being equally or more qualified than their male counterparts.

Implicit biases and outdated perceptions about leadership contribute to this issue, with women often being overlooked for promotions in favour of men. Furthermore, women who do reach senior roles are frequently paid less than their male colleagues in similar positions, perpetuating the pay gap even at the top.

The Cost of Inequality
The gender pay gap is not just an issue of fairness; it has significant economic implications. A report by the European Institute for Gender Equality found that closing the gender pay gap could boost Ireland’s GDP by up to €6 billion by 2030. Higher wages for women would mean more disposable income, higher tax revenues, and reduced reliance on social welfare.

Beyond the economic argument, the pay gap also impacts women’s financial security, particularly in retirement. Lower lifetime earnings translate to lower pension contributions, leaving many women at risk of poverty in old age. In Ireland, the pension gender gap is even wider than the pay gap, with women receiving 37% less in pension income than men on average.

What Needs to Change?
Addressing the gender pay gap requires a multi-pronged approach. Firstly, stronger pay transparency laws are needed to ensure that all companies, regardless of size, report and address their pay gaps. Penalties for non-compliance would also send a clear message that pay disparity will not be tolerated.

Affordable and accessible childcare is another crucial factor. Without it, women will continue to face barriers to full-time employment and career progression. Increasing paternity leave and encouraging men to take on a more significant share of caregiving responsibilities could also help to level the playing field.

Finally, businesses need to take a proactive approach to promoting women into senior roles. This means setting clear targets for gender diversity at all levels and implementing unconscious bias training to address discriminatory practices in hiring and promotions.

Time for Action
The gender pay gap is a complex issue that reflects broader inequalities in Irish society. While progress has been made, it’s clear that more needs to be done to ensure that women receive equal pay for equal work. Addressing this issue requires commitment not just from the government but from employers, employees, and society as a whole.

As we look to the future, the goal must be to create a workplace culture in which gender no longer determines earnings. Closing the gender pay gap isn’t just about fairness—it’s about building a stronger, more equitable Ireland for everyone.

Stay informed with itson.ie.