Mandatory pay gap reporting is being introduced shortly in Ireland. It will require organisations to publish the pay gap between women and men on an annual basis
Ireland's gender pay gap legislation has now been enacted and signed by the president. The gender pay gap legislation will require employers to disclose the pay gap between male and female employees. It will impact public and private sector employers with more than 250 employees. It will eventually be extended to organisations with 50 or more employees.
The Gender pay gap legislation is part of a package of measures announced in the National Strategy for Women and Girls 2017-2020. The legislation will become an important aspect of an organisation's diversity and inclusion strategy.
The gender pay gap is the difference between the average hourly wages of men and women in an organisation, regardless of their seniority.
Gender pay gap is not the same as equal pay; it is a different but connected issue. Equal pay relates to the prohibition of pay differences between men and women for "like work", "work of equal value" or "work rated as equivalent". Such variations are not permitted under Irish law and employers are required to address and resolve this.
Even if an employer does not have an equal pay issue, a gender pay gap may still exist. For example, the majority of lower-paid roles in an organisation may be filled by women. Read on to see how this will impact you and your business.
Gender pay gap reporting will apply to employers with 250 or more employees initially. This threshold will reduce to 150 employees or more within two years, and finally, those with 50 or more within a further year. It will apply to the public as well as the private sector.
Organisations will need to disclose:
Context will be key. Employers will have to set out the reasons for the differences. As well as the measures taken (or proposed) to eliminate the gap or reduce the gender pay gap.
Reporting details are not yet available. Employers will be required to submit the information to a designated public body. Also, we expect employers will need to publish details on their website.
The legislation includes several measures to tackle non-compliance. These measures include the facility to apply for an order from the Circuit Court or Workplace Relations Commission compelling an employer to comply.
Five key priorities you should address to prepare for gender pay gap reporting:
How can we help your business to prepare?
We can help you every step of the way and achieve compliance. We can:
Contact our experts if you would like more information on the calculating, reporting or addressing your organisation's gender pay gap.
