From snap to action: Gender pay gap reporting obligations in 2023
The Gender Pay Gap Information Act and Regulations require employers with 250 or more employees to publish details of the gender pay gap (GPG) within their organisation by this December.
The year 2022 saw the first round of gender pay gap reports published under Irish legislation. For many businesses this was their first time examining the GPG in their organisation, the reasons for it and the measures that can be taken to eliminate or reduce it. More than 500 companies disclosed their figures. Some employers who did not meet the reporting threshold chose to do so, particularly in light of the fact that the threshold is set to drop to employers with 150 or more employees next year and to those with 50 or more employees in 2025.
The month of June is “snapshot” month, during which employers must pick any date and, if they have 250 or more employees on that date, report by the same date in December. Of course, employers do not have to wait until the December deadline and may choose to proceed to publish the information any time in the six months following the snapshot date. We have summarised some key GPG reporting points below, with lots more information available on our Gender Pay Gap hub.
What information must be reported?
Employers in scope must publish the following information:
- The difference between the mean and median hourly remuneration of male and female employees
- The difference between the mean and median bonus remuneration of male and female employees
- The difference between the mean and median hourly remuneration of part-time and temporary male and female employees
- The percentage of male and female employees who received bonuses and benefits in kind
- The percentage of male and female employees in each of four quartile pay bands
Key points in calculating the GPG
In order to calculate the GPG employers must:
1. Calculate the hourly remuneration by identifying all amounts of ordinary pay and bonus pay paid to the employee during the 12-month period immediately preceding and including the snapshot date (the Relevant Pay Period).
2. Divide this amount by the number of hours worked during the Relevant Pay Period.
3.Calculate the mean and median hourly and bonus remuneration as follows:
(A - B) x 100
A
This calculation is where A is the mean or median, hourly or bonus remuneration of all male employees and B is the mean or median, hourly or bonus remuneration of all female employees.
Where to publish
Plans are in place for an online reporting system however, for now, employers must report their GPG information on their website or in some other manner easily accessible to employees and the public (e.g., in hard copy at the reception of their office). The report must remain available for three years.
The Narrative
Employers must publish a statement setting out their opinion on the reasons for the GPG in their organisation and the measures (if any) being taken, or proposed to be taken, to eliminate or reduce such differences.
A robust narrative is beneficial and provides employers with the opportunity to explain the various factors which may contribute to the GPG in their organisation. We have seen over the last year how these narratives have proved critical in response to strong stakeholder scrutiny and the "court of public opinion".
The legislation is gradually achieving its objective of requiring employers to be more transparent about their GPG and to take action, as needed, to address it. This transparency will be vastly accelerated by the implementation of the EU Pay Transparency Directive in the coming years (read our briefing here). Analysing pay data to assess the GPG is just the beginning and is an important step in fostering diversity and inclusion in the workplace and in supporting an employer’s ESG framework.
For further information in relation to this topic, please contact Triona Sugrue, Knowledge Consultant, Caoimhe Grogan, solicitor, or any member of ALG's Employment team.
Date published: 3 July 2023