The gender pay gap is the difference in the average hourly wage of men and women across a workforce. It does not indicate discrimination or unequal pay, which are illegal; rather, it is an assessment of gender representation gap within an organisation.
Gender pay gap reporting measures gender representation across an organisation. It compares the pay of all working men and women, not just those in similar roles. As a result, it is not about equal pay for equal value work. Instead, it is one component of a larger strategy for collecting data about and addressing gaps in employment workforce participation rates between genders.
A variety of factors drive the gender pay gap such as; employee policies, satisfaction, well-being, diversity and inclusion and pay equity. An organisation may have a gender pay gap even if it does not have an equal pay issue. For instance, if an organisation has a much larger percentage of women working in part-time roles than men, this discrepancy may contribute to its gender pay gap.
The Gender Pay Information Act (“the Act”) was signed into legislation on 13 July 2021. The Act amends existing regulations to impose new reporting requirements on both private and public sector employers. As of 2022, any employer with more than 250 employees must comply with these regulations and report on its gender pay gap.
By 2024, these regulations extend to employers with 150 or more employees, and by 2025 they will extend to those with 50 or more employees. Employers with fewer than 50 employees will be exempt from reporting requirements.
Employers must choose a ‘snapshot’ date in June and report on employees’ remuneration for the 12-month period that precedes the chosen snapshot date. Employers have six months from the chosen snapshot date to prepare calculations and publish their reports to their website.
The legislation includes a number of measures to tackle non-compliance, including allowing employees to seek an order compelling an employer to comply from the Workplace Relations Commission. The Irish Human Rights and Equality Commission can also file a Circuit Court or High Court application in cases of non-compliance.
Employers should also be aware of the indirect but important consequences of non-compliance, which can severely impact an organisation. These repercussions include brand and reputational damage and the ability to attract new talent.
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