International Equal Pay Day (18th September) – What is equal pay and why is it important to Employers

On the 18th of September, we mark International Equal Pay Day, which acknowledges the ongoing efforts across the globe to ensure equal pay for equal work becomes a reality.

In Ireland, recent legislative developments now require large Employers to calculate, analyse and publish their Gender Pay Gap information each year.

We have covered the Gender Pay Gap in more detail over the past number of months and this information can be found here.

What does Equal Pay mean?

However, the Gender Pay Gap should not be confused with the concept of equal pay for equal work – the existence of a Gender Pay Gap does not automatically indicate that women are not receiving equal pay to their male counterparts.

The right to equal pay is covered under employment equality legislation, which prohibits different treatment of Employees based on nine grounds; Gender, Civil Status, Age, Disability, Family Status, Sexual Orientation, Race, Religion and being a member of the Traveller Community.

Equal pay is not limited to pay, it also includes all terms of employment such as non-discretionary bonuses, pension contributions, overtime rates, etc.

Tackling the gender pay gap and advancing gender equality

In the EU, women earn, on average, 13% less than men. Tackling the gender pay gap and its underlying causes is a central goal of the EU’s Gender Equality Strategy 2020-2025.

The Pay Transparency Directive, adopted in 2023, aims to make the principle of equal pay for equal work a practical reality.

Additionally, EU work-life balance regulations help parents and caregivers better manage their professional and personal responsibilities, promoting a more equal distribution of caregiving roles between men and women.

EU regulations on gender balance in corporate boards require large, listed companies to achieve at least 40% representation of the underrepresented gender (currently women) among non-executive directors, or 33% across all directors.

Why should equal pay and pay transparency be important to Organisations?

Strengthen Trust and Morale
When Employees believe their compensation is both fair and transparent, they are more likely to feel satisfied with their roles and maintain higher levels of engagement.

Attract High-Calibre Talent
Adopting transparent pay practices can elevate an Organisation’s reputation, positioning it as a desirable workplace for top candidates who prioritise fairness, equity, and integrity.

Promote Diversity and Inclusion
Actively addressing pay disparities fosters a more diverse and inclusive work environment, which encourages innovation and brings a wider range of perspectives to the table.

For more information on the EU Pay Transparency Directive, click through here.