The Gender Pay Gap Information Act 2021 requires Employers to report their gender pay gap statistics annually. The reporting measures aim to increase transparency and identify areas, where pay gaps persist, promoting equal pay for equal work. The snapshot date of June 2023 means that Employers must choose a date this month to analyse their pay data to identify any gender pay gaps and take appropriate measures to address the imbalances.
The first reporting period under the Gender Pay Gap Information Act 2021 was closed on 31 December 2022 with more than 500 companies having disclosed their figures. The snapshot date of June 2023 marks the second annual reporting cycle since the introduction of the legislation.
Highlights[1] from December 2022 Gender Gap Findings
87% of companies disclosed a pay gap in favour of males.
71% of companies disclosed a pay gap above 5%.
48% of companies disclosed a pay gap above the national average.
82% of companies disclosed a bonus gap in favour of males.
What is the gender pay gap?
The gender pay gap is the difference between the average hourly pay of men and women across a workforce expressed as a percentage of the average hourly pay of male Employees. A positive gender pay gap indicates that, on average across all Employees, females are in a less favourable position than males.
How does the reporting process work?
All firms with 250 or more employees will be required to publish gender pay disparities. The Act expands the scope to include firms with 150 or more employees in 2024 and 50 or more employees in 2025.
The reporting period is the 12-month period immediately preceding and including the snapshot date. For example, if an employer has chosen 20th June 2023 as its snapshot date, its reporting deadline will be 20th December 2023 and the reporting period is 21st June 2022 to 20th June 2023.
What must Employers report on in December?
Employers must publish a report containing the following information:
- the difference between the mean hourly remuneration of Employees of the male gender and that of Employees of the female gender expressed as a percentage of the mean hourly remuneration of Employees of the male gender.
- the difference between the median hourly remuneration of Employees of the male gender and that of Employees of the female gender expressed as a percentage of the median hourly remuneration of Employees of the male gender.
- the difference between the mean bonus remuneration of Employees of the male gender and that of Employees of the female gender expressed as a percentage of the mean bonus remuneration of Employees of the male gender.
- the difference between the median bonus remuneration of Employees of the male gender and that of Employees of the female gender expressed as a percentage of the median bonus remuneration of Employees of the male gender.
- the difference between the mean hourly remuneration of part-time Employees of the male gender and that of part-time Employees of the female gender expressed as a percentage of the mean hourly remuneration of part-time Employees of the male gender.
- the difference between the median hourly remuneration of part-time Employees of the male gender and that of part-time Employees of the female gender expressed as a percentage of the median hourly remuneration of part-time Employees of the male gender.
- the percentage of all Employees of the male gender who were paid bonus remuneration and the percentage of all Employees of the female gender who were paid such remuneration.
- the percentage of all Employees of the male gender who received benefits in kind and the percentage of all Employees of the female gender who received such benefits.
- The difference between the mean hourly remuneration of Employees of the male gender on temporary contracts and that of Employees of the female gender on such contracts expressed as a percentage of the mean hourly remuneration of Employees of the male gender.
- The difference between the median hourly remuneration of Employees of the male gender on temporary contracts and that of Employees of the female gender on such contracts expressed as a percentage of the median hourly remuneration of Employees of the male gender.
- the respective percentages of all Employees who fall within each of
- the lower remuneration quartile pay band,
- the lower middle remuneration quartile pay band,
- the upper middle remuneration quartile pay band, or
- the upper remuneration quartile pay band.
who are of the male gender and who are of the female gender.
Employers must also publish an additional report setting out the reasons for the differences in the Employer’s opinion and what measures are being taken by the Employer to eliminate the gap.
What happens if an Employee was on maternity leave during the reporting period?
Statutory leave, such as maternity leave, must be included in the report. The preferred approach to calculating the data for any Employee in receipt of statutory payments is to use the notional number of hours that the Employee would have worked had they not been on leave.
What if an Employer has reduced its headcount below 250 since its “snapshot” date in June?
They are still obliged to report their data. The employer should be reporting on those employed on the snapshot date using the data for the previous 12-month period (June 2022 – June 2023).
What does an Employer have to do once the report is finalised?
Employers must publish their Gender Pay Gap Report on their website, and it must be accessible to all Employees and members of the public. The report must remain on the website for three years.
If the Employer does not have a website, their report must be made available in physical form, for inspection during normal business hours, by its Employees and the public, at the company’s registered office or principal place of business.
What happens if an employer fails to publish its Gender Pay Gap Report?
There are no financial penalties for non-compliance or compensation to Employees for any breach. But Employees can bring claims against their Employers to the WRC for failing to comply with the Act. The WRC can order an Employer to take a specified course of action to comply with the Act. This decision will be published together with the names of the Employer and Employee, which could bring reputational and organisational risks for Employers.
Under the Act, the Irish Human Rights and Equality Commission can bring a case to the Circuit Court or High Court to force an Employer to comply with the Act.
The snapshot date of June 2023 for gender pay gap reporting in Ireland provides an opportunity to assess the progress made in addressing pay disparities between men and women. While there have been positive developments in promoting pay equity and transparency, there are still hurdles to overcome. Encouraging greater female participation in male-dominated sectors, improving leadership representation, and fostering cultural change will be crucial in achieving true gender equality in the Irish workplace. The ongoing commitment to gender pay gap reporting and the implementation of targeted strategies will play a vital role in closing the gap and creating a fairer and more inclusive society for all.
If you require advice or guidance regarding legislative compliance requirements, please contact any of the Adare Human Resource Management team at (01) 561 3594 or email info@adarehrm.ie for more information on how we can help and the support available under our Partnership Programme.
Adare Human Resource Management is a team of expert-led Employment Law, Industrial Relations, and best practice Human Resource Management consultants.