The gender pay gap in Ireland is the differential between the average hourly wage of males and females within an organisation.

The Gender Pay Gap Information Act 2021 mandates employers to report on their gender pay gap annually. It requires them to publish information about differences in pay between male and female employees and explain the reasons for these differences.

The Act has been phased in, with mandatory reporting beginning in 2022 for employers with 250+ employees. This expanded to 150+ in 2024. The 2025 reporting requirements will apply to businesses with 50 or more employees, preparing for a November deadline.

The reports must detail both mean and median hourly pay gaps, as well as pay gaps for part-time and temporary employees. It should include a statement on the reasons for and measures to reduce any identified gaps.

New portal

To help organisations, the Department of Children, Disability and Equality is launching a new portal in the Autumn. This will make it easier for employers to file their reports and for the public to view them. GPG reporting ensures employers acknowledge the gaps between their employees and take steps to address the underlying issues.

By law, people doing the same work must get the same pay. The gender pay gap refers to the difference in the average hourly wage of all the men and women, in any organisation. According to research by the Chartered Institute of Personnel and Development (CIPD), one third of reporting organisations see the gender pay gap reducing.

Equal Pay International Coalition

In July of this year, Minister of State Alan Dillon announced Ireland’s accession to the Equal Pay International Coalition. This is a multilateral partnership working to reduce the gender pay gap at global, regional and national levels.

EPIC is a global initiative that brings together governments, employer and worker organisations, academia, civil society and private sector entities. It tackles the gender pay gap through coordinated action. The EPIC operates at global, regional and national levels. It is the only coalition of its kind to focus on equal pay.

The EU Pay Transparency Directive was adopted in 2023. It introduces legally binding measures to tackle the gender pay gap and promote equal pay for equal work. By mandating gender pay gap reporting, pay transparency in job ads, banning pay secrecy clauses, and providing employees with rights to pay information. Member states, including Ireland, must implement these rules by June 7, 2026.

The Gender Pay Gap Information Act already complies with many of the basic requirements of the Directive but there is more work to be done for employers reporting a GPG of 5% or more as the Irish Government will have the power to enforce fines. The Directive will also bring about changes in relation to recruitment and pay philosophy within organisations.

 

NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP. Its numbers can be found on our website www.nfg.ie, or email info@nfg.ie.