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Mandatory gender pay gap reporting
Gender pay gap reporting is now mandatory for all organisations in Ireland, both public and private, with 250 employees or more. Each December, they must publish a report on their website that details their hourly gender pay gap across a range of metrics. In time, this requirement will be extended to organisations with 50 employees or more.
What is the gender pay gap?
The gender pay gap is the difference between the average hourly wages of men and women in an organisation, regardless of their seniority.
The 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.
Who is it relevant to?
Gender pay gap reporting applies to employers with 250 or more employees. This threshold will reduce to 150 employees or more within two years, and finally, those with 50 or more within a further year. It applies to the public as well as the private sector.
What needs to be disclosed?
Affected organisations must disclose:
pay differences between male and female employees including hourly pay and bonuses
data across a range of working arrangements including part-time and temporary contracts
the proportion of male and female employees who receive benefits-in-kind and bonuses
the number of male and female employees across four pay bands
there may also be a requirement to publish differences in pay by reference to job classification.
Context will be key. Employers must set out the reasons for the differences, as well as the measures taken (or proposed) to eliminate or reduce the gender pay gap.
Where is it reported?
Employers must publish their gender pay gap report on their website each December. Plans are also in place to develop an online reporting system for the 2023 reporting cycle, which will consist of a central portal where all employer reports will be uploaded and can be accessed publicly.
What if a company decides not to comply?
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.
What actions should employers take?
Employers should address the following key priorities as they prepare to report on their gender pay gap:
Understand what must be reported. Ensure systems are in place which can easily produce the statistical data for publication.
Calculate your gender pay gap. Identify any equal pay risks or other systemic issues giving rise to the gap.
Identify initiatives and plans to address the gap.
Use data analytics to understand the root causes or why certain groups of staff are especially affected.
Craft the narrative of your gender pay gap disclosure and develop your communication plan. This could include sharing and discussing the data internally before going public.
We are here to help
We can help you every step of the way and achieve compliance. We can:
calculate and validate your gender pay gap reporting numbers.
identify and conduct additional analysis to contextualise the numbers.
develop a communication plan to get the messages right internally and externally.
identify and accelerate existing projects to address diversity and inclusion.
review your current strategy to improve future disclosures.
Contact our experts if you would like more information on calculating, reporting or addressing your organisation's gender pay gap.
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