In a significant step towards promoting pay equity, the Irish government has expanded the criteria for gender pay gap reporting. Effective from January 2024, new regulations now encompass a broader range of companies, aiming to increase transparency and address pay disparities more comprehensively.
Expansion of Criteria
Previously, only companies with 250 or more employees were mandated to report their gender pay gaps. However, the new legislation now includes companies with 150 or more employees. This expansion marks a crucial move in holding more organisations accountable for their pay practices and fostering a more equitable workplace environment. Furthermore, as of January 2025, it will become mandatory for Irish employers with a workforce of 50 or more employees to report on the gender pay gap.
What is Required?
The gender pay gap is the difference in the average hourly wage of men and women across the workforce.
Organisations must choose their “snapshot” date in June 2024. The reporting deadline is 6 months after that date, in December 2024. The reporting period is the 12-month period immediately preceding and including the snapshot date.
For example: An organisation chooses Friday 24 June 2024 as its snapshot date. Its reporting deadline is 24 December 2024, and its reporting period is 25 June 2023 to 24 June 2024.
Companies calculate the pay gap by comparing the average hourly earnings of male and female employees. Regulations have been published which set out the details on how these calculations should be made.
Impact on Companies
Complying with these requirements not only helps in legal adherence but also benefits companies in several ways. Transparent pay practices can enhance employee trust and morale, attract diverse talent, and boost the company’s reputation. While challenges such as accurate data collection and analysis may arise, solutions and support are available to assist companies in navigating these complexities.
Challenges and Solutions
Common challenges faced by companies include ensuring data accuracy and maintaining legal compliance. To overcome these challenges, it is essential to adopt best practices and utilise robust HR and payroll systems that facilitate accurate reporting. Staying informed and updated on legislative changes is also crucial to avoid potential penalties for non-compliance.
Support and Resources
Numerous tools and resources are available to help companies meet the new reporting requirements. As a payroll provider that develops and maintains its own payroll software, Jefferson Payroll can assist in providing you with accurate and relevant information required for the snapshot date in question once we have up to a year’s data on our systems.
Embrace the Change for a Fairer Workplace
Gender pay gap reporting is a vital step towards achieving pay equity in the workplace. By expanding the reporting criteria, the Irish government is encouraging more companies to take part in this important initiative. Companies are urged to embrace these changes, comply with the regulations, and contribute to a fairer, more transparent work environment.
