Update on EU Pay Transparency Directive and key actions for employers

Transposition status

The 7 June 2026 deadline for transposition of the Pay Transparency Directive has now passed. As expected, Ireland has not met this deadline, and the Government has confirmed that a phased approach to implementation is planned.

The Department of Children, Disability and Equality, which is responsible for transposing the Directive, has pointed out that the Directive has already been partially transposed by way of the Gender Pay Gap Information Act 2021. However, there are many aspects of implementation of the Directive in Ireland which remain unclear, and no actual implementing bill has been published to date.

Draft legislation is unlikely to be published until later this year, but the European Commission has recently confirmed that there will be no "stop the clock" or simplification of the Directive.
 

Implications of delayed transposition

For private sector employers, legally enforceable employee rights and employer obligations will only come into being when the Irish legislation is implemented. 

However, if an employee were to commence equal pay proceedings, they could refer to the Directive in the proceedings and argue that the current legislation should be interpreted in accordance with the Directive (even though it hasn’t been transposed into Irish law). 
 

What employers should be doing now

There is a lot that can be done now by employers, including:

• Reviewing and putting in place pay structures to ensure equal pay for equal work or work of equal value.
• Identifying categories of workers. A category of workers means those performing equal work or work of equal value. In late March this year, the European Commission and the European Institute for Gender Equality (EIGE) published guidelines and a toolkit to help employers comply with the Directive. The European guidelines explain what a gender-neutral job evaluation system looks like.
• Carrying out a pay audit to identify any existing gaps (particularly those of 5% or more) and either remedying those gaps or considering how to justify them.
• Reviewing recruitment processes and hiring practices. There is a strong indication that Irish legislation may require job advertisements to include the remuneration rate or range, although the precise approach remains to be seen.

Gender Pay Gap (GPG) Reporting – Key changes

GPG reporting will look very different under the Directive.  For example, under the new regime, employers will be required to report on the gender pay gap by category of employee (i.e. those performing equal work or work of equal value), not just at an overall organisational level.

Another key change is that where there is a GPG of at least 5% in any category, the employer, in cooperation with workers' representatives, must conduct a Joint Pay Assessment (JPA) where:

• the difference is not justified by objective and gender-neutral criteria; and
• the employer has not remedied the difference within six months of the GPG report.

If there are gaps that are not capable of objective justification, there is still time to address them.

Workers' representatives

Workers’ representatives are a key feature of the Directive. The Directive doesn’t expressly state that employers must appoint representatives but instead assumes that they will be in place. A wide range of rights and responsibilities is conferred on these representatives, who are expected to be closely involved in implementing and monitoring pay transparency measures. 

There are significant open questions around who workers' representatives will be for the purpose of the Directive. In Ireland, many employers operate a "direct engagement" model, and the concept of consulting regularly with workers' representatives will be new.
 

All employers are affected

While thresholds apply to GPG reporting obligations, the Directive impacts all employers regardless of size. For example, all employees will have a right to request information on their individual pay level and on average pay levels, broken down by gender, for employees doing the same work or work of equal value.
 

Top tips

We would recommend that employers use this window of time to brief leadership on the Directive and its implications, as well as to:

• get their pay data in order, categorise their workforce, and stress-test their pay structures;
• decide on their approach to workers' representatives; and
• design training modules for managers so they are equipped to have meaningful conversations with direct reports about pay.

This is not just a compliance exercise; it is an opportunity to build trust with your people and to get ahead of the curve before employees start exercising their rights to request information.

We will keep employers updated and, in the meantime, please visit our Pay Transparency Hub for further updates, resources and guidance for employers.

For further information in relation to this topic, please contact Aisling Muldowney, Partner, Kate Heneghan, Senior Associate, or any member of the ALG Employment Team.

Date published: 8 June 2026