15 Nov 23
Gender Pay Gap reporting - Update
Since its introduction in July 2021, gender pay gap reporting has remained a top priority for HR and legal teams across Ireland. The introduction of statutory annual reporting obligations forms part of a wider strategy by government to address female participation rates in the workforce and to address the compensation gap between genders.
Introduced on a staggered basis, the number of companies falling within scope of the reporting obligations is due to increase significantly in 2024, with all companies with 150 employees or more impacted. In 2025, the scope will expand again to include all employers with more than 50 employees.
Gender pay gap reporting may present a number of challenges to employers, both in terms of the execution of the reporting and also in navigating any negative impact that publishing the results may have on a company’s brand and ability to attract and retain talent.
Under the reporting guidelines, employers are required to take a ‘snapshot’ date in June of the relevant reporting year, and report on annual remuneration data as of that date for the 12 months proceeding.
Firms must provide calculations for the following data points.
Full time workers hourly remuneration gap (mean and median).
Full-time workers bonus remuneration gap (mean and median).
Part-time workers hourly remuneration gap (mean and median).
Temporary-contract workers hourly remuneration gap (mean and median).
Percentage of male versus female employees paid bonus remuneration.
Percentage of male versus female employees who received benefits-in-kind.
Gender breakdown by quartile by lowest to highest pay.
Where a pay gap is identified, the employer must outline the causes for the gap and the measures being taken to rectify this.
Ireland’s gender pay gap
According to the latest Eurostat figures (2021), Ireland’s average gender pay gap stands at 9.9%, below the EU wide average of 12.7%. 31st December 2022 marked the first reporting period under the reporting obligations, with more than 500 companies mandated to undertake analysis and disclosure of their figures by this date. According to a recent analysis by PWC, 87% of companies disclosed a gender pay gap, with 71% disclosing a gap of over 5%. The mean gender pay gap across employers reporting in December 2022 was 12.6%.
In terms of sectors, the finance, banking, insurance, and construction sectors disclosed the widest pay gaps between men and women, while the retail, healthcare and charity sectors were more likely to report more balanced pay scales.
In terms of accounting for the disparity, the main drivers referenced across firms were a higher male representation in senior and leadership positions, with women tending to account for a larger proportion of junior, administrative and support staff.
When correctly managed, gender pay gap reporting can have a positive impact on an organisation's ability to attract talent, retain staff and build a positive brand reputation by demonstrating a commitment to diversity, equality, and inclusion. The Cafico International team is here to help you as you navigate this process.