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Ireland’s Employers Prepare for Mandatory Pay Reporting Under EU Pay Transparency Directive by 2026

Employers in Ireland are gearing up to comply with the forthcoming EU Pay Transparency Directive, set to take effect in June 2026. This directive will extend mandatory pay reporting requirements beyond larger companies to encompass all employers, irrespective of size.

Citris Rewards Consulting’s Director, Oliver Coakley, anticipates significant changes in the Irish marketplace, with the directive placing a heightened emphasis on pay equality disclosure. Employers will be mandated to report on gender-based pay disparities and address any gaps between male and female employees in similar job roles.

Coakley notes a growing awareness among his clients regarding the evolving pay reporting landscape. While Ireland’s gender pay gap of 11.2% for 2023 fares better than the EU average of 14%, there are notable discrepancies across industries. Sectors like legal, banking, and engineering exhibit higher gender pay gaps compared to consumer goods, public sector, and hospitality.

He attributes these variations partly to the prevalence of STEM roles, where male representation is dominant. Nevertheless, organisations are actively striving to balance gender representation, recognising the reputational risks associated with gender pay disparities.

To tackle these challenges, organisations are appointing assertive leaders and holding management accountable for driving tangible change. Despite some progress in narrowing gender pay gaps, disparities persist, particularly in sectors like law. Coakley underscores the importance of collaboration among stakeholders, including businesses, educational institutions, and the government, to address underlying societal factors contributing to gender pay inequality.

As Ireland prepares to implement the Pay Transparency Directive, lessons from other countries and targeted interventions will be crucial in fostering a more equitable workforce landscape.

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