Gender Pay Gap Reporting: What is the 2024 Update?
What is Gender Pay Gap Reporting?
The Gender Pay Gap Information Act and Regulations (the Regulations) require employers (with 250 or more employees) to examine the Gender Pay Gap (GPG) in their organisation. The Regulations also require such employers to publish:
- Details of the GPG
- The reasons for the GPG in the employer’s opinion, and
- The measures being taken (or that are proposed to be taken) by the employer to eliminate or reduce the GPG.
This information must be published in (or before) December each year, based on a ‘snapshot’ date in June.
What has changed?
The reporting requirement currently applies to organisations with 250 or more employees. However, in 2024 this threshold is due to drop to 150 or more employees. It is therefore expected that organisations with 150 or more employees will be required to choose a snapshot date (the relevant date for the payroll data) in June 2024 and publish a report no later than the corresponding date in December 2024.
Where should GPG findings be published?
The findings must be published on the employer’s website in a manner that is accessible to all employees and the public. If the employer does not have a website, the findings must be available in physical form for inspection during normal business hours by employees and the public at the employer’s registered office or principal place of business. There are plans to launch an online reporting system. However, this platform has not come into being yet.
Who should be included in GPG calculations?
In short, all employees (as defined by the Employment Equality Act 1998) of an organisation on the snapshot date are in scope. This includes full time, part time and fixed-term employees. Independent contractors / consultants may need to be included in certain circumstances and tailored advice should be taken, if and when the question arises.
What’s next?
In 2025, the GPG will become a live consideration for almost all employers operating in Ireland, when the threshold for in-scope employers will drop to organisations with 50 or more employees. This will lead to further transparency and will paint a full picture of the GPG in Ireland, thereby illuminating the areas where further work is needed.
What about the EU’s Pay Transparency Directive?
Employers should also be aware of the Pay Transparency Directive which came into force in June 2023. Ireland has until June 2026 to implement the new rules which contain far-reaching new measures, including those in the area of GPG reporting. Further requirements will be introduced, including that employers will need to report the GPG within each category of workers who perform equal work or work of equal value. Further, employers will be required to carry out an equal pay audit if certain conditions are met.
What are the key takeaways?
- Employers should be aware of the relevant thresholds as they continue to drop. Organisations with 150 or more employees are due to be in scope this year and the threshold is set to drop to employers with 50 or more employees in 2025. Early preparation is key.
- Employers are also advised to plan ahead at an early stage to mitigate against the challenges the new requirements under the Pay Transparency Directive will impose.
Need more guidance? Our On Demand: Gender Pay Gap Reporting training will help you remain compliant and up to date on requirements.
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