In July 2021, the Gender Pay Gap Information Act (the “Act”) was signed into law. The Act amends the Employment Equality Act 1998 and sets out how certain organisations should report on gender pay gap differentials between female and male employees.
The Act requires that the Minister for Children, Equality, Disability, Integration and Youth make regulations on how certain gender pay gap metrics are to be calculated.
The gender pay gap is the difference in remuneration of men and women across a workforce. It compares the pay of all working men and women; not just those in similar jobs, with similar working pattern or with similar competencies, qualifications or experience.
In Ireland, the gender pay gap is c. 11.3% – slightly lower than the EU average of 14.1% (https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Gender_pay_gap_statistics).
Initially, the Act will apply to employers with 250 or more employees.
On or after the second anniversary of the regulations, employers with between 150 and 250 employees will be covered by the Act. Finally, on or after the third anniversary of the regulations, employers with between 50 and 150 employees will be covered.
All public sector bodies, (e.g.: Government Departments, Scheduled Offices, An Garda Síochána, the Defence Forces and schools) are included.
The information to be published by employers, as set out in the Act, is as follows:
The Act also requires employers to provide explanations for any gender pay gaps and the measures (if any) that are being taken to eliminate or reduce the gender pay gap.
It is recommended that organisations start performing Gender Pay Gap calculations now. Organisations that understand their Gender Pay Gap metrics can make positive steps to be in a better position when reporting and publishing requirements become mandatory.
At EisnerAmper Ireland, our dedicated team of outsourced payroll and advisory professionals possess the tools and the expertise to analyse your payroll data and produce detailed reports highlighting the current gender pay gap in your organisation.
Learn more about our ESG Services here.
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