FAQs on GPG Reporting in Ireland
A summary of frequently asked questions relating to the draft Gender Pay Gap Information Regulations are listed below.
What is the Gender Pay Gap?
The GPG should not be confused with the concept of equal pay for equal work. The existence of a GPG does not necessarily mean women are not receiving equal pay.
Rather, the GPG is the difference in the average gross hourly pay of women compared with men in a particular organisation, such that it captures whether women are represented evenly across an organisation.
What's Ireland's GPG?
Ireland has a GPG of 14.4%, compared with a European Union average of 14.1%.
Is GPG Reporting a legal requirement in Ireland?
On 13 July 2021, the Gender Pay Gap Information Act 2021 (the Act) was signed into law.
The Act will require employers to report on the pay differences between female and male employees, including any bonuses. The Act provides for the making of regulations through which reporting requirements will be specified.
The Department of Children, Equality, Disability, Integration and Youth has indicated that the reporting process will begin in 2022.
Will all employers in Ireland be affected?
The mandatory reporting obligation will be implemented on a phased basis. Initially, the reporting obligation will only affect employers with 250 or more employees. However, the Act intends to narrow this scope to 150 employees within three years and, ultimately, the reporting obligation will be fully extended to employers with 50 or more employees.
What information needs to be calculated and reported?
The Gender Pay Gap Information Act 2021 provides that the Minister for Justice and Equality will make regulations in respect of:
(i) Prescribing the classes of employer and employee to which the regulations will relate
(ii) How to calculate the number of employees an employer has
(iii) How to calculate the pay of employees
(iv) The form, manner and frequency with which information is to be published
The information to be reported (and published) will include the differences between:
(i) The mean and median hourly pay of male and female employees
(ii) The mean and median bonus pay of male and female employees
(iii) The mean and median pay of part-time male and female employees; and
(iv) The mean and median pay of employees on temporary contracts
Employers will also be required to publish details of the number of male and female employees who:
(i) Were paid bonus pay
(ii) Received benefits in kind; and
(iii) Are in the lower, lower-middle, upper-middle and upper range pay bands
It is also possible that the regulations will require the publication of information by reference to job classifications.
Will this data be published and, if so, where?
Yes. The Gender Pay Gap Information Act 2021 envisages the publication of data, although the form, manner and frequency of such reporting and publication has not yet been clarified.
Will there be consequences for non-compliance?
Yes. Employees can bring claims against their employers to the Workplace Relations Commission (WRC) in respect of non-compliance with the Act. While the Act does not provide for sanctions in the form of compensation for the employee or for a fine to be imposed on the employer, the Director General of the Workplace Relations Commission can make an order requiring the employer to take a specified course of action to comply with the Act. All decisions will be published and will include the names of the employer and employee.
There is also scope for the Irish Human Rights and Equality Commission to apply to the Circuit Court or the High Court for enforcement orders