This year, one of the most significant updates to Irish employment law is the upcoming EU Pay Transparency Directive.
From the requirement to disclose salary ranges during the recruitment process, to putting a ban on pay secrecy in the workplace, this legislation is likely to cause quite a stir for both employers and employees.
So, where are we at with the upcoming legislation and how should employers prepare? Read on to learn more.
What is the EU Pay Transparency Directive?
The EU Pay Transparency Directive is likely to be one of the biggest updates to Irish employment legislation in recent years.
With the aim of promoting equal pay for equal work between men and women, the Directive requires EU member states to implement domestic legislation which promotes pay transparency and equality in the workplace. While EU countries may choose to go above and beyond the requirements, local legislation must satisfy a minimum set of objectives set out by the Directive.
While the Directive is complex and consists of a range of different elements, some of the primary objectives are as follows:
- Employers must disclose salary ranges during the recruitment process, and the pay information given must be objective and gender neutral
- Employees have the right to request information regarding their salary, and the average salaries earned by those working in similar roles within the business
- There will be a ban on pay secrecy policies in the workplace
- The Directive introduces gender pay gap reporting obligations, beyond those currently in place in Ireland
- Employers must conduct joint pay assessments if unjustified gaps above 5% are identified
When will the Directive be transposed into Irish law?
The EU has set a deadline for EU member countries of 7 June 2026. This means that countries are due to have transposed the Directive into local legislation by this date.
The Irish Government, however, recently announced that the Directive would not be fully transposed by the June deadline. Instead, pay transparency legislation will be implemented on a phased basis.
What should employers do next?
While there is now some uncertainty around when this legislation comes into place, employers should continue to prepare.
Complying with the upcoming legislation may require you to make significant changes to your business’s recruitment processes, HR policies, salary structures, and gender pay gap reporting.
To prepare, employers may consider the following steps:
- Conduct a voluntary pay transparency audit
- Review job descriptions and classification systems
- Establish clear, documented salary bands
- Ensure recruitment practices align with upcoming disclosure requirements
- Engage legal advisors to assess compliance gaps
