Gender Pay Gap Reporting in Ireland

In a significant move towards gender equality, the Gender Pay Gap Information Act 2021 in Ireland is undergoing a pivotal change set to take effect on January 1st, 2024. This legislation, a part of the National Strategy for Women and Girls 2017-2020, aims to rectify the imbalance in average earnings between men and women, addressing the pay gap which is the difference in the average remuneration. For Irish employers, particularly those with 150 or more employees, these changes bring new responsibilities and opportunities for fostering diversity and inclusion, emphasising the importance of reporting in Ireland.

Key Changes

The most notable change in the legislation is the reduction of the employee threshold from 250 to 150, broadening the scope of reporting to include more businesses. This means that starting in 2024, all Irish employers with 150 or more employees will be mandated to report on the pay differences between female and male employees. As of January 2025, it will then become mandatory for Irish employers with a workforce of 50 or more employees to report on the gender pay gap.

Gender pay gap Reporting Requirements

Under the Gender Pay Gap Information Act, employers will need to provide detailed data on their workforce, including:

1. The mean and median gap in hourly pay between men and women.
2. The mean and median gap in bonus pay between men and women.
3. The mean and median gap in average hourly pay of part-time male and female employees.
4. The percentage of men and women who received bonus pay.
5. The percentage of men and women who received benefits in kinds.

Download Our Gender Pay Gap Reporting Guide

Explanations and Measures of GPG reporting 

In addition to reporting the pay gaps, employers are required to offer explanations for any disparities and outline the measures being taken to address them, ensuring compliance with equal pay standards. This transparent approach is expected to not only satisfy legislative requirements but also contribute to the improvement of diversity and inclusion strategies in Irish-based companies, promoting equal pay.

Common Pitfalls in Gender Pay Gap Reporting

As Irish employers navigate the mandatory gender pay gap reporting requirements set by the Employment Equality Act 1998 and the Gender Pay Gap Information Regulations 2022, several common pitfalls can hinder compliance and accuracy.

1. Incomplete Data Collection: Ensuring comprehensive data on employees’ remuneration for the 12-month period that precedes the chosen snapshot date is crucial. Missing data can lead to inaccuracies in median hourly and mean hourly gender pay gap calculations.
2. Incorrect Calculations: Errors in calculating mean and median hourly pay differences or median hourly bonus discrepancies can result in faulty reports. Employers must accurately compare the hourly pay of women to that of working men to ensure correct pay gap reporting in Ireland.
3. Lack of Context: Reports should provide context for the pay gaps observed, including gender representation across different roles and levels. Failing to do so might obscure the root causes of pay disparities.
4. Neglecting Legal Updates: Staying updated with changes in gender pay gap legislation and reporting requirements is vital. Overlooking these updates can lead to non-compliance.
5. Insufficient Action Plans: Simply identifying pay differences between female and male employees is not enough. Employers must set out measures to tackle non-compliance and develop action plans to eliminate or reduce identified gaps.
6. Poor Communication: Effective communication of pay equity initiatives and reports on the gender pay to employees fosters transparency. Organizations must also report on their website and, where applicable, indicate that a central website is proposed to be taken for reporting obligations.

By addressing these pitfalls, employers can ensure more accurate and compliant GPG reporting, promoting equal pay for equal work and reducing the pay gap across a range of metrics.

Timeline for pay gap reporting in Ireland

The reporting process began in 2022 for employers with 250 or more employees. The threshold will be lowered to 150 employees or more within two years, and further reduced to include employers with 50 or more employees the following year, aiding organisations in making strides towards equal pay.

Conclusion

As the Irish business landscape adapts to these changes, employers should seize the opportunity to foster a fair and inclusive work environment. Embracing transparency in gender pay gap reporting not only ensures compliance with the law but also positions businesses as champions of equality. The shift in the reporting threshold signifies a collective effort towards a more equitable future for all employees.

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