September 18th is International Equal Pay Day – A Timely Reminder of Upcoming Pay Transparency Obligations
18th September marks International Equal Pay Day – an annual call to action to close the gender pay gap. For Employers across Ireland and the EU, the day also serves as a timely reminder of increasing regulation under the EU Pay Transparency Directive which is due to be implemented no later than June 2026.
What Is International Equal Pay Day?
International Equal Pay Day, observed annually on 18th September, highlights the ongoing issue of pay inequality between men and women worldwide. It was established by the United Nations to recognise persistent gender-based wage disparities and to promote concrete actions aimed at achieving equal pay for work of equal value.
Despite the principle of equal pay for equal work being enshrined in law for decades, the gender pay gap remains a reality across many sectors. According to Eurostat statistics, women in the EU earned on average 12% less per hour than men in 2023. In Ireland, the gap stood at 8.6%.
The EU Pay Transparency Directive – What Employers Need to Know
The EU Pay Transparency Directive, adopted in 2023 at EU level, represents a significant shift in how Employers will be expected to address pay equality.
The Directive aims to enhance pay transparency and strengthen the enforcement of equal pay principles. Domestic legislation transposing the new rules into Irish law will be required by June 2026. Key provisions include:
1. Gender Pay Gap Reporting
Ireland has already introduced gender pay gap reporting. The Directive does however include wider compliance obligations including a requirement to report on any gender pay gap between “categories of workers” that do equal work or work of equal value.
2. Pay Transparency for Jobseekers
Employers must provide information about the initial pay level or its range in job vacancy notices or before the interview stage. Organisations will also be prohibited from asking candidates about their own pay history or existing rate of pay.
3. Right to Pay Information for Employees
Current Employees will be entitled to request information on their pay level and the average pay levels, broken down by sex, for categories of Employees doing the same or equivalent work.
4. Pay Assessment and Justification
Where a gender pay gap of more than 5% is identified and cannot be justified on objective gender-neutral criteria, Employers may be required to conduct a joint pay assessment in cooperation with Employee representatives.
5. Ban on Pay Secrecy
The Directive prohibits contractual terms that restrict Employees from disclosing or discussing their pay.
Preparing for 2026
While the Directive will not be transposed into Irish law until 2026, now is the time for Employers to begin preparing. We recommend the following steps:
- Conduct internal pay audits to identify any unexplained pay disparities.
- Review recruitment practices for compliance with the incoming increased regulation.
- Update Employee Handbooks and contracts to identify if they contain pay secrecy clauses.
- Develop internal processes for handling Employee requests for pay information.
- Train HR and line managers on the new legal obligations and communication protocols.
A Call to Action
International Equal Pay Day is a timely prompt for action. The upcoming EU Pay Transparency Directive will bring about increased compliance obligations around how pay is managed, reported, and communicated.
Compliance will not only mitigate legal risk but also contribute to building a more equitable and transparent workplace. As we mark Equal Pay Day on 18 September, it is a good opportunity for all Organisations to assess current pay practices and begin preparing for the new pay transparency framework which will be in place next year.
If your Organisation would like guidance on conducting a pay audit or preparing for the EU Pay Transparency Directive, Adare’s experts are here to assist. Please contact us to learn more about how our Reward and Pay Equity Services can support your Organisation’s pay transparency objectives.
Gender Balance Regulations for Corporate Boards Confirmed
The EU (Gender Balance on Boards of Certain Companies) Regulations 2025 (the “Regulations”) came into effect this summer. The Regulations transpose EU Directive 2022/2381 into Irish law.
Companies In Scope
The Regulations apply to a “relevant listed company” which is defined as an Irish incorporated company that meets the following criteria:
- is not a “micro, small and medium-sized enterprise or SME” (defined as a company that employs less than 250 persons and has an annual turnover not exceeding €50,000,000 or an annual balance sheet total not exceeding €43,000,000)
- has its registered office in Ireland, and
- has shares admitted to trading on a regulated market in at least one EU Member State.
The Regulations do not therefore apply to private companies or to Irish companies listed on a market outside the EU.
Key Obligations
By 30th June 2026, Organisations in scope must meet one of two gender balance objectives:
- At least 40% of non-executive director positions must be held by members of the underrepresented sex.
- Alternatively, at least 33% of all board positions (executive and non-executive combined) must be held by members of the underrepresented sex.
Organisations must also set, in writing, individual quantitative objectives with a view to improving the gender balance among executive directors on its board and the steps it proposes to take to achieve those objectives.
Recruitment processes for non-executive directors must follow objective, transparent criteria and candidates who were not recruited may request details on the selection criteria used.
In addition, Organisations in scope must, no later than 30 November 2026, publish the written objectives concerning improving gender balance on its board on their website.
Reporting Obligations
From 30th November 2026, in-scope Organisations are required to report to the Minister for Children, Disability and Equality on an annual basis concerning:
- Gender breakdown of board members
- The measures taken to achieve the 40% non-executive director target
- Reasons gender diversity objectives were not met and measures to achieve those objectives.
These reports must be published on the Organisation’s website and included in their corporate governance statement, which will be given to the Minister.
From 1st December 2027, Organisations failing to meet their obligations under the Regulations may be publicly named by the Minister.
In-scope Organisations should now begin considering the impact of these incoming requirements on the make-up of boards of directors as well as the recruitment of non-executive directors.