The GPG should not be confused with the concept of equal pay for equal work. The existence of a GPG does not necessarily mean women are not receiving equal pay.

Rather, the GPG is the difference in the average gross hourly pay of women compared with men in a particular organisation, such that it captures whether women are represented evenly across an organisation.

In 2022, Ireland had a GPG of 9.6% i.e., the average male earned 9.6% more than the average female.

Yes. On 13 July 2021, the Gender Pay Gap Information Act 2021 (the Act) was signed into law and on 3 June 2022 the Employment Equality Act 1998 (section 20A) (Gender Pay Gap Information) Regulations 2022 (the Regulations) were published. The Regulations, which were subsequently updated on 31 May 2024, require employers with 150 or more employees to publish details of their GPG, along with a statement setting out, in the employer’s opinion, the reasons for such differences and the measures (if any) being taken, or proposed to be taken, by the employer to eliminate or reduce such differences.

The mandatory reporting obligation is being implemented on a phased basis. Employers with 150 employees or more are in scope for the 2024 reporting cycle and the scope will be further extended to employers with 50 or more employees in 2025.

In-scope employers are required to choose a snapshot date (the relevant date for the payroll data) in June 2024 and report no later than the corresponding date in December 2024.

Employers are required to report on the gender pay differentials in their organisation, setting out pay differences between female and male employees.

Employers must report:

• The difference between the mean and median hourly pay of male and female employees expressed as a percentage of the mean hourly remuneration of relevant employees of the male gender
• The difference between the mean and median bonus pay of male and female employees expressed as a percentage of the mean bonus pay of relevant employees of the male gender
• The difference between the mean and median hourly pay of part-time and temporary male and female employees expressed as a percentage of the median hourly remuneration of relevant employees of the male gender on part-time or temporary contracts
• 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

The employer must set out in the report its opinion as to the reasons why a GPG exists in the company and the measures (if any) that are being taken or proposed to be taken to eliminate or reduce the GPG.

Yes, the Regulations set out that employers must publish or make available their GPG report. This is to be done on the employer's website in a manner that is accessible to all the employer’s employees and the public. Where the employer does not have a website, it must make the data available in physical form for inspection during normal business hours by its employees and the public at its registered office or principal place of business. Employers are required to ensure that their GPG report remains available and accessible for not less than three years from the date of publication or on which they were made available, as the case may be.

The Minister has indicated that a central website will be established to which employers will be required to upload their report. We await further details in relation to when this central website will go live.

Yes. An employee can bring a claim against their employer to the Workplace Relations Commission (WRC) in respect of non-compliance with the Act. While the Act does not provide for sanctions in the form of compensation for the employee or for a fine to be imposed on the employer, the Director General of the WRC can make an order requiring the employer to take a specified course of action to comply with the Act. All decisions will be published and will include the names of the employer and employee. Thus, employers are most likely to be held accountable by the court of the public opinion, with employers who fail to report potentially being highlighted by the media.

There is also scope for the Irish Human Rights and Equality Commission to apply to the Circuit Court or the High Court for an enforcement order.

The EU Pay Transparency Directive (the Directive) contains far-reaching new measures, such as gender pay-gap reporting across all EU member states, a ban on pay secrecy, information rights for employees, job candidates and much more. The new regime will lead to an increase in employee and representative involvement in addressing pay equity and has the potential to create time-consuming requirements for employers to conduct equal pay audits and assessments of work of equal value.

The Directive came into effect on 6 June 2023. EU member states, including Ireland, have three years to transpose the provisions of the Directive into domestic law. There is no indication yet as to when the draft legislation transposing the provisions of the Directive will be published.

While GPG reporting under the directive is similar to the existing GPG reporting regime, there will nonetheless be some important changes. For example, employers will have to provide details of the GPG by employment category to employees and employee representatives. Broadly speaking, this means employers calculating and disclosing the GPG in respect of those performing equal work or work of equal value. The accuracy of the GPG report will need to be confirmed by the employer's management, after consulting employee representatives, which is not currently required under Irish law.

Where the GPG report indicates a gap which (i) is at least 5% in any category of workers; (ii) has not been justified by objective and gender-neutral factors; and (iii) has not been remedied within six months of the date of the GPG report, the employer will have to carry out a joint pay assessment in co-operation with employee representatives, with the results to be made available to employees, their representatives and the monitoring body.

Additionally, the Directive creates the potential for greater compensation for equal pay claims than is currently permitted under Irish law.

Employers will have to indicate the initial pay level or range in a job vacancy notice or otherwise prior to interview and, importantly, will not be permitted to ask applicants about their pay history. The aim is to ensure workers have the necessary information to engage in balanced and fair negotiations regarding their salaries and to ensure existing pay discrimination and bias is not perpetuated over time, especially when changing jobs.

Employees will have a right to request information from their employer on their individual pay level and on average pay levels broken down by gender for employees doing the same work or work of equal value. This information must be supplied by the employer within two months of the request.

Not only that, but employers with 50 or more employees will have to make information easily accessible regarding the criteria used to determine employees' pay, pay level and pay progression.

The directive’s consequences are significant. It will undoubtedly lead to an increase in employee and representative involvement in addressing pay equity and it contains potentially tedious requirements for employers to conduct equal pay audits and assessments of work of equal value. It will increase the profile of equal pay and pay transparency across EU member states and will likely lead to a rise in equal pay claims. It’s worth bearing in mind that the directive sets out the minimum standards required. Ireland, like other EU member states, may introduce and maintain pay transparency laws that are more favourable to workers.

While the current focus for many employers is no doubt on complying with existing GPG reporting requirements, employers should not lose time in getting ahead of the new pay transparency rules. Employers should take steps now to examine existing recruitment, pay transparency and GPG reporting practices and address any underlying issues.