A Step Towards Pay Equity – What Irish Employers Need to Know About the EU Pay Transparency Directive

A Fairer Future for the Irish Workplace

The EU Pay Transparency Directive marks a significant milestone in the journey toward gender pay equity across Europe. Its aim is simple but powerful: to enforce the principle of equal pay for equal work and work of equal value between women and men.

With the transposition deadline of June 2026 fast approaching, Ireland is moving to incorporate these measures into national law. The directive sets out clear responsibilities for employers, putting transparency at the heart of workplace equality.

What Is the EU Pay Transparency Directive?

Adopted in 2023, the EU Pay Transparency Directive is designed to tackle persistent pay gaps and salary inequality through legally enforced transparency and accountability. It ensures that all workers — regardless of gender — are fairly compensated for their work.

At its core, it mandates:

Pay transparency for job applicants
Gender pay gap reporting
Employee rights to pay information
Enforceable consequences for non-compliance

For employers, it’s both a legal requirement and a cultural shift toward openness, fairness, and equity.

When Will This Come into Effect in Ireland?

Ireland is required to transpose the directive into national law by 7 June 2026. That gives employers less than two years to get ready.

Although some Irish companies already report gender pay gap data under existing legislation, the directive introduces more detailed obligations, lower reporting thresholds, and stronger enforcement mechanisms.

This means all employers — particularly those with 50+ employees — will need to review their systems, pay structures, and HR processes well in advance.

Key Requirements for Employers

Let’s break down the directive’s main features and what they’ll mean in practice for Irish businesses:

Transparency in Job Ads

Employers will be required to disclose starting salaries or pay ranges in job advertisements. This marks the end of vague terms like “competitive salary” and ensures that applicants have a clearer understanding of what to expect from the outset.

Gender Pay Gap Reporting

Businesses with:

100+ employees will need to report their gender pay gaps by 2027
50+ employees will follow by 2031

Reports must also outline measures taken to address gaps, not just the figures.

Right to Pay Information

Employees will have the right to request:

Their individual pay level
Average pay levels for employees doing the same work or work of equal value, broken down by gender

Importantly, workers cannot be penalised for making such a request.

Enforcement and Penalties

If employers fail to meet the new standards, they can face:

Fines
Legal action
Orders to compensate affected employees

The directive also reverses the burden of proof in court cases — meaning employers must prove they complied with pay transparency rules.

Why Irish Employers Should Start Preparing Now

Although the law won’t be fully enforced until 2026, the best-prepared organisations are already taking action. Here’s why:

It reduces legal and reputational risk
It enhances trust and retention
It strengthens employer branding
It positions you as a leader in fair employment practices

Waiting until 2026 will put companies under pressure. Starting now allows for thoughtful, strategic planning and gradual change.

What Should Employers Be Doing Right Now?

Review Pay Structures and Salary Bands

A detailed audit of your existing pay policies is step one. Are salaries consistent across roles and departments? Are your grading systems documented and defensible?

Use this time to spot any anomalies and prepare for the move to formal salary bands.

Address Any Disparities

If pay gaps or inconsistencies are found, take proactive steps:

Conduct root cause analysis
Create action plans to close gaps
Review promotion and progression criteria

Transparency will shine a light on these issues. Better to address them before your staff — or regulators — do.

Foster a Culture of Fairness

Cultural readiness is as important as policy. Start normalising open, respectful conversations about pay. Train managers on fair recruitment and progression practices. Make it clear to your team that pay equity isn’t just a compliance issue — it’s a core value.

Frequently Asked Questions

Here are answers to the most common concerns we hear from employers:

Does this apply to small businesses?

Only businesses with 50+ employees will have reporting obligations, but all employers must be ready for transparency in job ads and employee requests.

Can employees see what others earn?

Not exactly. They can request average pay levels for comparable roles, broken down by gender — not specific individual salaries.

What if we uncover a pay gap?

You won’t be punished for having a gap — but you’ll be expected to explain and address it. Transparency is the first step toward accountability.

Will this damage morale if gaps are exposed?

Handled poorly — yes. But with thoughtful communication and action, it can actually build trust and increase employee engagement.

Do we need to act now or wait for the Irish legislation?

Act now. Early preparation helps you avoid rushed compliance and sends a strong message about your values.

How ORC Can Help

At ORC, we bring the human face of HR to complex challenges like these. We support Irish businesses with:

Pay structure reviews
Gender pay gap analysis
Policy and documentation development
Employee communication strategies
Manager training on pay equity
Ongoing expert HR advice and compliance support

Our clients tell us they feel relieved, empowered, and future-ready after working with us. We’re not just HR consultants — we’re your partner in progress.

Final Thoughts: Lead with Transparency, Win with Trust

The EU Pay Transparency Directive is a significant step toward a more equitable working world. For employers, it’s a moment to lead — not just comply.

Taking early action now means less disruption later. More importantly, it means building a workplace where people feel valued, fairly treated, and motivated to stay.

Ready to future-proof your business?

📞 Speak to an ORC HR expert today