Resource: Local reporting requirements in Ireland
On May 31, 2022, Ireland implemented the Gender Pay Gap Information Act 2021. This law requires certain organizations to report their gender pay gap annually.
The law was motivated to counteract disproportionate representation: many women in lower-paid positions but few in higher-paid ones. If an organization has this dynamic, it is now required to explain the discrepancy. This will prompt the organization to better understand its own pay structure and workforce composition. This, in turn, provides a good foundation for the organization to begin closing its gender pay gap. And taking action will now be even more beneficial for employers, since Ireland’s new requirements will make pay gap information publicly available.
The required reports start with a “snapshot” of data on any date of the employer’s choosing in June. The reports are based on the employees the company has on this date. The reporting period starts 12 months before the snapshot date. Reports must be published no more than 6 months after the snapshot date.
In 2022, organizations with over 250 employees are required to report. In 2024, organizations with over 150 employees will report, and in 2025, those with over 50 employees will report.
Each report must include the following data:
Gender pay gaps – both mean and median pay gaps.
Hourly remuneration pay gaps for:
- All employees
- Part-time employees
- Employees with temporary contracts
- Pay gaps in bonuses (if applicable)
- Hourly remuneration pay gaps for:
- The percentages, broken down by gender, of employees who receive bonuses and/or benefits in kind. (Here, “benefits in kind” means any non-cash benefit with some monetary value.)
- Gender distribution in each salary quartile.
If any gender differences are identified with regard to any of these three points, the organization must also provide a written explanation. This should include the reason (in the employer’s opinion) for the discrepancy and any measures being taken to reduce it.
PayAnalytics offers a built-in template for a gender pay gap report that meets Ireland’s requirements. This report is easy to create and export to PDF.
Generating this report in PayAnalytics only requires a few key pieces of compensation data
- Hourly remuneration and bonus remuneration.
- Columns indicating which employees are part-time, on temporary contracts or receiving benefits in kind.
What happens next
The report must be published in a way that is accessible to all the organization’s employees and the general public. This is usually done by posting the report on the company’s website. The report must remain available for at least three years after its publication date.
Although currently, each organization is publishing its own information individually, Ireland plans to create a central reporting system. So in the future, employers will need to upload reports electronically.
Ireland’s new legislation does not stipulate any penalties for organizations that identify gender pay discrepancies, small or large. However, it’s still usually in an employer’s best interests to close its pay gap. Given the increased transparency, pay disparity will be public knowledge. A significant gender pay gap might alienate current employees, potential employees, and possibly customers.
Further support in PayAnalytics
PayAnalytics not only creates a report tailored to Ireland’s requirements – it offers additional tools to help organizations obtain good results. These tools include:
- Pay equity analyses: This tool not only measures the adjusted pay gap (in addition to the unadjusted), but it also provides suggestions (specific raises for specific employees) on how to close it.
- Workplace equity feature: This tool gives an overview of the diversity in an organization’s workforce composition. Understanding workforce diversity is key to understanding why an unadjusted pay gap might exist. This tool also shows how the organization’s workforce is changing.
- Compensation Assistant: When a company closes its pay gap, this tool helps ensure that it does not come creeping back through promotion or new hire decisions.
- Drill-down capabilities: Insight into specific groups of employees, like part-time or temporary workers, helps employers get a better understanding of their pay structure.
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