Two Thirds of Employees in Scope of Gender Pay Gap Reporting Legislation in 2025

Two Thirds of Employees in Scope of Gender Pay Gap Reporting Legislation in 2025

It is estimated that the expanded scope of gender pay gap reporting legislation will include over two-thirds of Employees this year. In 2025, Organisations with 50 Employees or more are required to publish a gender pay gap report. A much broader range of SME Employers will therefore be in scope for the first time this year. Early preparation is vital to understand the compliance burden involved, what data is required, the stakeholders who will need to participate and what information to publish in the report itself.

Impact of Gender Pay Gap Reporting on SMEs

While large Organisations have the resources and infrastructure to comply with the gender pay gap reporting regulations, SMEs face more significant challenges. Organisations with just over 50 Employees may not have dedicated HR departments or extensive data management systems for instance. Many SMEs will lack the resources to effectively analyse pay disparities, report the data, and implement corrective measures. Despite these challenges, SMEs are encouraged to view gender pay gap reporting not just as a legal obligation but as a strategic opportunity for growth. Organisations that invest in closing the gender pay gap often see improvements in Employee morale, engagement, and overall performance.

So, while the introduction of gender pay gap reporting requirements means additional administrative and financial costs to gather, analyse, and report the required pay data, there are several long-term benefits associated with ensuring compliance:

1. Promoting a More Inclusive Workplace: Even small businesses with 50 or more employees can benefit from promoting gender equality by addressing pay disparities. With the increased focus on gender pay gap reporting, SMEs are incentivised to foster an inclusive culture where Employees are paid fairly for their work.
2. Improved Talent Retention and Recruitment: As jobseekers gain more pay transparency rights in the coming years, Organisations that disclose their gender pay gaps and make efforts to close them may have a competitive edge in attracting top talent. Conversely, failure to address the issue could result in losing out on skilled Employees who value transparent pay practices.
3. Enhanced Reputation: Compliance with gender pay gap regulations helps foster a reputation as a fair Employer that is committed to diversity and inclusion. For SMEs with 50+ employees, this can be a key differentiator in a competitive labour market.

Consequences of Non-Compliance with Gender Pay Gap Reporting Regulations

Failure to comply with gender pay gap reporting regulations can have legal and reputational consequences. While the government has not yet introduced strict penalties for non-compliance, it is important for Organisations to recognise the potential risks involved in ignoring these obligations.

1. Legal Repercussions: Employees have a right to seek an order from the Workplace Relations Commission compelling their Employer to comply with the requirement to publish a gender pay gap report. The Irish Human Rights and Equality Commission also has authority to file a Circuit Court or High Court application in cases of non-compliance.
2. Reputation Damage: One of the most significant consequences of failing to comply is the potential for damage to an Organisation’s reputation. Pay transparency is increasingly valued by consumers, Employees, and stakeholders. Non-compliance may lead to public scrutiny and harm an Organisation’s brand.
3. Impact on Business Opportunities: Businesses that fail to comply with gender pay gap reporting regulations may lose out on opportunities to secure contracts with clients who have diversity goals. Moreover, in the age of corporate social responsibility, being seen as an Employer that does not take gender pay equality seriously could limit expansion options.
4. Decreased Employee Morale and Engagement: Employees may be less engaged if they feel that pay inequality is not being addressed by their Employer. Non-compliance with gender pay gap reporting regulations can lead to dissatisfaction, decreased productivity, and lower Employee retention. This can be particularly harmful to SMEs that rely on a smaller but highly skilled workforce.

Early Preparation is Vital

The reason a gender pay gap exists in one Organisation may be entirely different from the reason it exists in another. Each Organisation must therefore review its own pay data and formulate a narrative around why a gender pay gap has developed and how the Organisation intends to reduce it. SMEs who successfully navigate these regulations in 2025 and beyond have an opportunity to demonstrate leadership in gender equality and position themselves as attractive Employers in a competitive market. The government has also indicated the reporting deadline will move to November in 2025, meaning that Organisations will have only five months from the June snapshot date to compile and publish their report. Early preparation is therefore vital.

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Click through here to find out more and book a free consultation to discuss your Organisation’s gender pay gap reporting requirements.