Pay Transparency: What It Means for Gender Pay Gap Reporting

As new Pay Transparency compliance requirements move closer to implementation (Member States including Ireland must transpose the EU Pay Transparency Directive into domestic law by 7^th of June 2026), many Organisations are beginning to assess how these changes will affect existing Gender Pay Gap (GPG) reporting obligations.

One thing is clear: GPG reporting under the EU Pay Transparency Directive will be more detailed and more complex than what many Organisations have encountered to date.

Under the new framework, Organisations will no longer report a single, overall pay gap figure. Instead, pay gaps will need to be reported across categories of workers. While this obligation is expected to be introduced on a phased basis from 2027, it will require more detailed job role analysis and a structured approach to identifying and assessing work of equal value.

The Directive also introduces additional requirements where a gender pay gap of 5% or more is identified within any worker category that cannot be explained by objective, gender-neutral factors. In these circumstances, a joint pay assessment in cooperation with Employee representatives will be required unless the pay difference is addressed within six months.

For many Organisations, this represents a substantial shift from current GPG reporting practices. Areas such as job role evaluation, job categorisation and the objective justification of pay practices are all likely to be subject to increased scrutiny.

When preparing for these changes, Organisations may wish to consider:

• How roles are evaluated and grouped into objectively defensible categories of workers
• Whether existing pay structures are based on clear, gender-neutral criteria
• The pay data collection and collaboration with stakeholders required to complete joint pay assessments
• The potential legal, Employee relations and reputational implications

Our experienced Reward Consultants would be happy to discuss how Pay Transparency may affect your Organisation and how we can support you as you prepare – please contact Neil McCormack at nmccormack@adarehrm.ie today.

Preparing now will help minimise future pressure, risk and exposure.