The Gender Pay Gap Information Act, signed into Irish law in 2021, marked a crucial step towards greater workplace equality and transparency. As its reach expanded to include more businesses in 2025, employers must understand its implications and take the necessary steps to ensure compliance.
This article explores the core aspects of the Act, who it applies to, and how businesses can prepare effectively.
Understanding the Gender Pay Gap
The gender pay gap refers to the difference in average earnings between men and women within an organisation. Expressed as a percentage of men’s earnings, this measure sheds light on systemic disparities in pay structures, career progression opportunities, and representation in leadership roles. While it does not necessarily indicate direct pay discrimination, it serves as a crucial metric for assessing broader gender-based inequities in the workplace.
Overview of the Gender Pay Gap Information Act
The Gender Pay Gap Information Act was introduced to address these inequities by mandating transparency in pay-related data. Under this legislation, employers in Ireland must publicly disclose detailed information about their gender pay gap, including:
- Mean and Median Hourly Remuneration – The difference in average (mean) and middle-point (median) hourly earnings of male and female employees.
- Mean and Median Bonus Payments – The average and median differences in bonus payments between genders.
- Percentage Receiving Bonuses or Benefits in Kind – The proportion of male and female employees receiving bonuses or non-monetary benefits, such as company cars or health insurance.
- Explanatory Notes – A narrative that explains the factors contributing to the pay gap and the measures being implemented to address them.
By promoting accountability, the Act encourages employers to take meaningful steps to close the gender pay gap.
Who Needs to Comply?
The implementation of the Act has been phased in gradually to allow businesses time to prepare. As of 2025, the reporting requirement now extends to all organisations with more than 50 employees, making it essential for employers of this size to be fully prepared.
7 Key Steps for Employers to Achieve Compliance
Ensuring compliance with the Gender Pay Gap Information Act requires a structured and proactive approach. Below are the essential steps businesses should take:
- Understand the Legislative Requirements
Employers must familiarise themselves with the Act’s requirements by:
- Identifying the reporting metrics mandated by legislation.
- Staying informed about deadlines and updates from the government.
- Understanding the penalties for non-compliance, which could include reputational damage and potential legal consequences.
- Determine Applicability
Businesses must confirm whether they meet the employee threshold for compliance. As mentioned previously, as of this year, the Act applies to organisations with over 50 employees.
- Conduct a Pay Audit
A comprehensive pay audit is the foundation of compliance. Employers should:
- Collect and analyse payroll data for all employees, based on a snap shot date of their choosing in June.
- Calculate the mean and median hourly pay for male and female employees.
- Assess bonus payments and benefits in kind.
Employers must also ensure that data collection methods align with GDPR and data protection regulations.
- Identify Contributing Factors
Once the data is compiled, it’s important to analyse it for root causes of any gender pay gaps. Contributing factors may include:
- Underrepresentation of women in senior leadership roles.
- Unequal access to training and development opportunities.
- A higher prevalence of part-time work among female employees.
- Develop an Action Plan
A key aspect of compliance is the narrative accompanying the data. Employers must:
- Provide a clear explanation of the identified pay gap.
- Outline specific measures to address these disparities, such as mentorship programs, flexible working arrangements, and diversity initiatives.
- Set measurable goals and timelines to track progress.
- Publish the Report
Employers must ensure their reports are publicly accessible on their website or another easily reachable platform by November each year. Reports should:
- Be clearly visible and easy to understand.
- Present data transparently, avoiding misleading interpretations.
A government-operated central portal for report submissions is also expected to increase accessibility.
- Communicate with Stakeholders
Transparent communication is essential for demonstrating a commitment to gender equality. Employers should consider:
- Informing employees about findings and planned actions.
- Showcasing gender equity efforts in external communications to enhance employer branding.
Addressing the gender pay gap is an ongoing effort that requires continuous assessment and adaptation. As employers, you should regularly review pay data to evaluate the effectiveness of implemented measures and identify areas for improvement. Action plans should be adjusted based on insights gained from data analysis and employee feedback. Additionally, staying updated on legislative changes and best practices in gender pay equity ensures organisations remain compliant and proactive in fostering workplace equality.
But while the Act goes a long way to promote workplace fairness, some challenges may arise during implementation. Ensuring precise and comprehensive data collection can be complex, making data accuracy a significant concern. Smaller businesses may also face resource constraints, struggling to allocate sufficient time and expertise for compliance efforts. Additionally, overcoming ingrained biases and systemic barriers requires long-term cultural change, which can be difficult to implement effectively. Addressing these challenges proactively will be key to achieving meaningful progress in closing the gender pay gap.
Despite these challenges however, compliance with the Gender Pay Gap Information Act offers numerous advantages. Transparent pay practices will enhance your organisation’s reputation, improve public perception and strengthen your brand image. Demonstrating a commitment to workplace equity can also be a powerful tool for talent attraction, drawing jobseekers who prioritise fairness and inclusivity. Internally, addressing pay disparities fosters trust and loyalty among employees, leading to improved retention rates. Furthermore, research indicates that diverse and equitable workplaces achieve stronger financial performance and drive greater innovation, making gender pay gap compliance a strategic advantage for businesses.
Conclusion
The Gender Pay Gap Information Act represents a pivotal moment in advancing workplace equality. By understanding the legislation and taking proactive measures, employers can not only meet their legal obligations but also contribute to a more equitable society.
Rather than treating compliance as a mere legal requirement, you should see this as an opportunity to assess internal practices, cultivate inclusivity, and foster an environment where all employees can thrive.
At MSS, The HR People, we have the expertise to guide you through this legislation and reporting requirement with confidence. We can even assist you with completing it. Contact us today to ensure your organisation remains fully compliant and prepared for the future of workplace equality. Info@mssthehrpeople.ie │ www.mssthehrpeople.ie
